Thinking strategically – learn how to problem solve like a leader.

According to Harvard Business Review, the most valued skill in a leader is strategic thinking. Whether you’re an entrepreneur, freelancer, or working in a business, the ability to think strategically can help you make the right decisions, prioritise what’s important and see patterns and connections that can help you (or your business).

What is it?

Strategic thinking enables you to prioritise, set a clear path, ask questions, learn and adapt. It enables better decision making – you’ll have a clearer understanding of what is the right thing to do. The right thing to do is also going to be aligned with your objectives – what do you need to achieve first and foremost? It will give you a framework for innovation, you will benefit from increased clarity on what’s important and what are the right challenges to focus on.

Note that there is nothing wrong with new and exciting ideas. There’s nothing wrong with pivoting to a new opportunity you’ve identified. That’s a key part of being in a growth space and being agile. Thinking strategically (and critically) enables you to understand what the right thing is to do, why you’re going to do it, and how you’re going to do it.  It also enables you to decide quickly and prioritise effectively.

How do you do it?

Broadly speaking, thinking strategically can encompass a wide range of things – from how you anticipate upcoming problems to a commitment to ongoing learning, to thinking critically, to diving into data.

There are some elements which will come more naturally to some people than others, but I do believe that there are some critical skills that are attainable and can become second nature through practice and application. This isn’t an exhaustive list by any means, but here are the things I think are the important skills to help you in business.

1.       Set An Objective.

As far as I’m concerned, this is the most important thing you can take from this whole list! Get crystal clear on why you’re doing what you’re doing, and then that’ll help you’ll know if it works. Are you solving a problem that you know exists? Are you doing this to improve customer experience? Is it to sell more? Is it to improve the speed of a client’s workflow? Are you reducing plastic to save the oceans?

Once you know why, you can develop a plan with the right tasks and measurement, that will ensure you know if it’s working. This gap between a great idea and a clear objective is where good strategic thinking starts, and where good business fail.

2.       Look Ahead.

There are two parts to this.  Firstly, read up on your industry in order to make sure you are anticipating what might come. Continuously review your marketplace, your competition, your customers’ behaviour, new developments in tech, whatever you can. Secondly make sure you’re making time for long-range planning – not just thinking about the next month or quarter, but looking further ahead and thinking about what will be coming for you and your business, where you want to be, and how to get there.

3.       Assess and revise. 

Don’t just accept that the first solution is going to be the right one forever. Keep reviewing what you’re doing and revising it. Design flexibility into your plans and create benchmarks to review progress. Flexibility is important when you’re starting up – you need to be nimble.  Think of your plans as guidelines rather than rules, and find ways to continuously change and adapt within them.  Also, be open to feedback – are you ok with hearing your idea isn’t the best, or that a customer doesn’t like something? Challenge current beliefs and mindsets, including your own.

4.     Ask questions. And then ask some more.

Critical thinking is the art of asking questions, with not being satisfied with the status quo or the first answer you’re given. Excellent questioning skills is another habit that does take practice, but with practice you can make this something that comes naturally. When it comes to problem solving, the value come from finding the root cause so take the time to dive into an issue. This enables you to get to what the actual problem is.  There’s more info on this in my blog post on root cause analysis here.

5. Prioritise.

Have you ever heard someone say ‘Everything is a priority’??  I know I have! The trouble with that is, if everything is a priority, nothing is.  So, how often are you trying to do ‘everything’?  How often do you have a new project or opportunity come in and you just squeeze it into a work flow without considering trade-offs? Is it critical for business success? Will it change your business if you do it? Or will it negatively impact your business if you don’t do it?  The best long-term planners accept it’s not possible to do everything and they work out what an acceptable trade-off is. 

If you can adopt these five techniques and commit to practicing them daily, you’ll become a more effective strategic thinker and a more effective leader.