As leaders move further into the 21st century they will continue to grapple with the ramifications of change; down sizing, mergers, acquisitions, globalization...
In order for leaders to be able to keep their organizations afloat they must position the organization sufficiently to foresee, and to deal with future changes.
Ashley and Morrison in their article, Anticipatory Management posited that the success of organizations will depend to a large extent on whether change will befall organizations as a series of crisis, versus whether leaders are able to use foresight and anticipation to manage change in a calm, informed and systematic manner.
How can leaders position their organizations to be change ready? They must be able to not only engage in strategic thinking and planning but they must also develop strategic thinking in their followers.
Scholars such as Hughes and Beatty, De Kluyver and Pearce postulates that in order for organizations to succeed leaders must be able to think and plan strategically as well as develop strategic thinking skills in their followers.
An organization armed with strategic thinkers is a learning organization that is in the position to effectively deal with change.
This article provides leaders with the tools that they need in order to gain the competitive advantage in today's economy.
It differentiates between strategic thinking and planning and expounds on the usefulness of each.
It also provides leaders with detailed information on the importance of involving followers in the strategic thinking process, and finally it highlights the importance of employing strategic thinking in order for organizations to remain competitive.
As we move deeper into the 21st century it becomes increasingly clearer that organizations no longer have the privilege of operating in a stable environment.
The mortgage company Countrywide recently bought out by Bank of America; the housing market was just thrown into a tail spin which has left many organizations in a crunch! We now live in an era which is flagged by a series of unprecedented changes and now demands the use of strategy in organizations that seek that sustainable competitive advantage.
An analysis of the term strategy shows that the word was derived from the Greek word "strategia" meaning generalship; the need for strategy stems from an organization attempt to be victorious in a conflict.
Strategy therefore signifies the ability to defeat potential weakness by manipulating strength.
It is an adaptable approach that is not subjected to rigidity, which according to Alvord is the reason why strategic thinking is important.
Strategic thinking is a process of formulating successful strategies that are consistent with the organizations mission/goals, which will ultimately help the organization to remain successful in the future.
Hughes and Beatty in their book, Becoming a Strategic Leader (2005), postulate that strategic thinking is a learning process that forces organizations to assess their current status, understand their goals and missions as well as outline how they expect to achieve them.
It involves constantly evaluating their activities to ensure that they are on par with the organizations goals.
It is a proactive approach that emphasizes the development of opportunities in order for organizations to maintain that sustainable competitive advantage.
Strategic thinking is not a means within itself; the effectiveness of strategic thinking lies in its implementation, or what some would consider strategic planning.
Strategic Planning represents the process of documenting the plans/ideas from the strategic thinking process in a logical manner that will see "strategic thinking" coming to fruition.
It provides direction and measurable evidence for strategic thinking.
Heracleous posits that strategic thinking and planning are mutually reliant on each other.
According to Heracleous, strategic thinking represents the initial aspect of the organizations ability to remain sustainable while strategic planning represents the end to the thinking process.
Organizations that exert much time and energy in strategic thinking but make no plans to realize the thinking run the risk of failing in today's' business world.
Leaders must employ both strategic thinking and planning in order to realize success; both techniques prepare organizations to adapt to being entities that are always learning.
They prepare organizations to be open and flexible in dealing with change; which is what contemporary organizations need in order to remain viable.
According to Hughes and Beatty the surest way for organizations to continue to exist in the face of such rapid changes is to become a continual learning engine.
This calls for leaders to utilize strategic thinking and planning.
Both techniques provide the energy needed to propel organizations to maintain a sustainable competitive advantage.
In order for leaders to transform their organization to be continual learning engines, involves not only finely honing their strategic skills but they must also develop strategic thinking skills in their followers.
Strategic thinking is a process that should involve everyone.
Smikle stated that followers must feel a sense of belonging to the organization with which they are affiliated.
This involves ensuring that followers understand the overall goals and missions of the organization.
Failure to include them may result in employees feeling delineated from the organization, which may encourage routinely following instructions but refusing to accept responsibilities.
Followers who are informed are essential to the long term success of the organization.
Organizations that are empowered with strategic thinking are more equipped to be able to deal with changes...
Leaders should employ strategic thinking because it fosters better guidance on the types of initiatives that the organization should take to fulfill its visions.
They must then utilize strategic planning to assist them in allocating the resources needed to fulfill the visions.
This process guides the decisions that management makes and set standards for employees.
It is a measurable process that helps alert leaders to of change so that they may catch irregularities before they escalate into bigger dilemmas (Smikle).
In looking further we see that when everyone in an organization employs strategic thinking the organization becomes a learning ecology that is prepared to deal with changes.
Gilmore in her article Leadership 101 states that everyone in the company should develop in strategic thinking competency areas which are as follows: "Visioning symbolize the ability to see the future, environmental scanning, which is the capability to examine your environment for ideas, reframing which is creative thinking, making common sense which is ensuring your followers understand the organizational environment and challenges, and system thinking which is seeing the big picture.
" Harari also buys into Gilmore notion he believes that there is a long-term benefits for organization to invest in the development of strategic thinking skill he went on to state the importance which are "increased employee satisfaction, decrease in turnover improved productivity...
Harari thinks that success is inevitable when leaders deal with the cause rather than the symptom.
It should also be noted that this seemingly new phenomena has been utilized by biblical figures such as Moses who needed to think and plan strategically in order to lead the Israelites out of Egypt, and also by Nehemiah who needed to rebuild the walls of Jerusalem; Jesus himself utilized Strategic thinking and planning when he commissioned the twelve to preach the gospel.
Organizational leaders can therefore benefit immensely from using strategic thinking and planning.
Conclusion Organizations that desire to remain sustainable amidst the rapid changes that is now a permanent fixture in today's economy must encourage strategic thinking and planning among leaders as well as among followers.
Strategic thinking is the sight that organizations require in order to move forward while strategic planning charts the route that the vision needs to follow, in order for the organization to realize its vision.
When leaders and followers engage in strategic thinking and planning, the organization becomes a fertile ground for ongoing learning; a sense of unity is fostered and all the team players understand the goals and missions and work to ensure that they are realized.
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Strategic Thinking or Strategic Planning? Long Rang Planning, 481-487 retrieved January 8, 2008, http://www.
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