Strategic Thinking and Theory
Professor Michael Porter of Harvard Business School brought strategic thinking to a new level of respect in the American business scene with his ground-breaking work in the 1980’s regarding competitive advantage, competition and strategic thinking.
Porter believed that ‘Strategy means choosing a different set of activities to deliver a unique mix of value’ in other words, doing things differently.
This definition bridged the gap between the military and business and between ancient and modern ideas.
An example of this was the ‘choice of a different set of activities’ used by the ancient general Hannibal to defeat the romans at the Battle of Cannae in 216 B.C. and the role of Apple to play a significant part of the computer revolution of the 1980s.
In a precise way strategic thinking is goal-directed, structured, and focused on the future. It is analytical and ambitious. It concerns power and trends as well as uncertainty and the resolution or accommodation of that uncertainty.
Strategic thinking can be thought of as a resource to achieve our goals as does money, or time and labour.
Intelligence and its Importance
Intelligence and analysis play a significant role in critical thinking by providing the raw material to build a sound strategic structure. Not only do we need to find out what the other side is doing but, we want to mislead our opponents about our intentions as the U.S. military did with its feigned invasion of Kuwait from the sea during the first Gulf War in 1991.
Hostile armies may confront each other for years in order to struggle for victory in a decisive battle; yet if one begrudges rank, honours, and a few hundred pieces of gold and remains ignorant of the enemy’s situation, he is completely unaware of the interest of the state or its people. Sun Tzu – about intelligence and espionage.
In competitive situations, the ‘surprise attack’ smacks of the not-so genteel aspects of conflict, but in sports, politics and business, we can admire a well- crafted surprise. In football, surprise and deception are integral parts of the game and are crucial to gaining competitive advantage. Deception can turn a bad situation into a good one, and it can turn a good situation into victory.
The five basic types of surprises at our disposal are those of intention, time, place, strength and style.
A SWOT analysis (strengths, weaknesses, opportunities and threats) is an ideal tool that can help us look at all aspects of a situation to ensure our strategic intent matches our resources and capabilities.
A Definition of Strategic Thinking – What’s your point of view?
‘Strategy is a method or plan that we craft to bring about a desired future, such as achievement of a goal or a solution to a problem. It’s a plan that assesses, acquires and allocates necessary resources to the most effective and efficient use. It’s also a plan that anticipates and incorporates competitor responses’.
Peter Drucker, the great 20th century management thinker, observed that there are two types of thinking; thinking about objects and thinking about people. Static thinking involves planning around objects and is quite easy; the variables are few and relatively unchanging. Strategic thinking however is much more difficult, because it involves anticipating the actions and reactions of competitors and preparing accordingly.
Thinking strategically helps us to make sense out of chaos and enables us to use the forces around us to our advantage, rather than allow our competitors to pummel us.
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