The 10 Rules Of Strategic Thinking
- Apr 2, 2023
- 4 min read
Written by: Luca Berni, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
Usually, observing organizations from the outside, we tend to think that their actions are driven by a precise strategy. But when you collaborate with them and get to know them from the inside, it is surprising to discover how much those actions are just the result of the moment, that there is no real strategy behind it, or that what the organization calls "strategy" is just a simple action plan. That happens because the Management has not developed a strategic approach that derives from a strategic way of thinking. To learn how to think that way, it can be helpful to start with the 10 Rules of Strategic Thinking.
1. If you don't have a strategy, you're bound to work for someone else's strategy.
Having a strategy in whatever you do means knowing where you are going and not falling victim to events. Those who do not have a strategy call "events" what are likely to be the result of the strategies of their opponents, against which they are not defending. Indeed, they could unknowingly find themselves implementing the opponent's strategy with their own actions.
2. Even a bad strategy wins against “no strategy”.
There are very few people who face life, events, work, and career with a strategy in mind. These people get results much more easily and quickly than the average. Even if their strategy in the eyes of an expert strategist may be weak, poor, or badly constructed, it still allows them to obtain better results than those who think day by day about what to do.
3. Developing a strategy is easy. The hard part is remembering to implement it.
Developing a strategy isn't all that difficult, just take the time to reflect on the present, learn from the past, visualize success, and plan for the future. The hardest part is to remember every day to act consistently with the developed strategy, without being distracted by daily events. No matter how effective the strategy is, its implementation will always encounter obstacles.
4. Keep your "true" strategy a secret.
The "true" strategy should be known by the minimum number of people possible. If made known to the wrong people, a strategy can be subject to strong criticism (especially from those who do not have a strategy and feel threatened by it) which can undermine the trust of those who developed it. Also, if disclosed, it can cause adversaries to devise effective countermeasures to counter it.
5. Strategy doesn't list actions (that's tactics), but it describes the "path".
Strategy is often confused with tactics. The tactic can be summed up as the action plan, who does what, when, and with what results. Tactics, unlike strategy, must be disclosed. Strategy, on the other hand, describes the path to the final goal, including milestones that cannot be avoided (strategic objectives). While tactics can be very flexible, the strategy shouldn't change.
6. Always consider what you are willing to sacrifice to achieve the goal.
To obtain important results, some sacrifices must be made. Money, time, relationships, and goods are (some) resources that may have to be sacrificed to implement the strategy and achieve the goal. In the elaboration phase, it is important to define what is expendable, to what extent, and what is not expendable. If during the implementation of the strategy the "sacrifices" exceed the defined limits, then the strategy was wrong and must be corrected.
7. Strategy development is the only responsibility you can't delegate.
Organizations frequently delegate strategy development to external consultants. This is a grave mistake for two reasons. The first is that the organization becomes "dependent" on the consultant when it should be able to walk on its own. The second is that if a Leadership is not able to elaborate an effective strategy it is not the right Leadership. It is right to involve external consultants to be accompanied in "how" to develop the strategy, not in the contents.
8. If it's a real strategy, you can use it once and only once.
A well-developed strategy is the result of a specific and statistically unrepeatable situation. This is why a strategy, even if it has proved effective in the past, cannot be replicated because it has been developed for certain conditions. Furthermore, if such a strategy has already been adopted, it is likely that it is known and therefore easily identifiable and easy to fight back.
9. The better the strategy, the more strongly the system will react against it.
An effective strategy generates significant changes in the system in which it operates. Since systems tend to be homeostatic, i.e., they tend to maintain the status quo, the stronger the impact of a strategy, the more strongly the system will react in the opposite direction. For this reason, obstacles must not discourage, because the more they are encountered, the more effective the strategy will be.
10. If you don't have time to create a strategy, then you really need a strategy.
Those who don't have time to devise a strategy are the ones who need it most because it means they are "victims" of events, rather than leading them. If you don't have a clear strategy and you don't elaborate on the consequent tactics, you find yourself in the position of chasing only emergencies. Everything becomes equally urgent and important because there is no strategy that determines priorities.
Extra: If you don't understand who the "chicken" is, it means that the "chicken" is YOU.
In a competitive scenario, there is someone who becomes a target. When you don't know who it is, chances are it's you.
Luca Berni, Executive Contributor Brainz Magazine
Luca Berni is an Executive & Team Coach that works with Leaders, Top Managers, Entrepreneurs, Boards of Directors, and Leadership Teams. Before becoming a Coach in 2009, he worked as a Manager in different Multinational companies in different Countries for almost twenty years. Luca also works as a management consultant, he co-founded and runs TheNCS The Neuroscience Coaching School, and he writes articles and books about Coaching and Management.
