Strategic Thinking in Leadership
Most of our executive coaching relationships focus on cultivating the intangible skills essential for effective and impactful leadership. One skill frequently emphasized is the importance of strategic thinking, especially for those recently promoted to directorial roles. Moving from a managerial to a leadership position with increased responsibilities highlights the importance of strategic thinking in addressing the challenges that come with the new role. The higher the level of responsibility, the more expansive the perspective a leader must adopt to make sound decisions. Becoming a strong strategic thinker can be the differentiating factor.
I've identified four key skills that distinguish strong strategic thinkers:
Big Picture View
Strategic thinkers have the capability to comprehend the internal operations of the business, understanding how processes interconnect within the entire operation. Rarely do these leaders refer to an issue as belonging to a particular division; they see themselves as leaders for the entire organization, not just a specific division. They possess a deep understanding of the organization, including indicators across all departments, human dynamics, and their impact on operations. They are knowledgeable about organizational history, company culture, and how these factors impact business performance.
Balancing Conflicting Goals
Strategic thinkers understand how a decision can affect different areas, both positively and negatively. They use this understanding to help teams see beyond their departmental needs, recognizing the interactive nature of business forces. They skillfully communicate conflicting goals when analyzing problems. This enables them to interact with other department heads with a holistic perspective, anticipating potential conflicts from decisions that may impact the results of other business areas.
Solution-Centric Mindset
Strategic thinkers go beyond fixating on limitations, concentrating on making things happen instead of dwelling extensively on what went wrong. Their focus is on figuring out how to fix issues. By asking questions that shift the team from limitations to possibilities, they help manage both their and their team’s frustration with things beyond their control. This approach fosters creative problem-solving and promotes collective intelligence within their teams.
Keeping an Eye on the Outside
Strategic thinkers stay attuned to external developments beyond their organization, understanding the global trajectory of the industry. Actively seeking information from diverse sources keeps them well-informed, fostering a futurist mindset that guides their actions based on future needs. This external focus tends to provide a sense of security to the organization, as people see them as reliable leaders capable of navigating uncertainties in the future.
I've observed these skills in leaders at various levels, including CEOs, department heads, and division managers. In my opinion, the higher the level of responsibility, the more crucial these skills become. However, not all leaders exhibit them. Some members of top leadership teams show strong biases, fixating on one position or point of view while disregarding or minimizing the impact of their decisions on different levels of the organization.
A common scenario is leaders making decisions solely with a financial focus, later realizing the negative effects on company culture, employee morale, or customer satisfaction. Another indicator of a lack of strategic thinking in a leadership team is when the HR Department Head is the lone advocate for promoting training, development, recognition, or well-being initiatives, struggling to garner support for budget allocation similar to non-people-related initiatives.
Perhaps one of the most dangerous manifestations is when different leaders on the team are strongly narrow-minded, fiercely protecting their own business results. This entrenched mindset leads to political conflicts within the team, hindering progress and, ironically, undermining the very results they strive to safeguard. When a biased leader holds a key decision-making role, it can leave the team feeling frustrated and stuck rather than inspired and engaged. Instead of rowing in the same direction, subtle boycotts of change initiatives can occur with devastating results, both financially and in the team's morale.
Take a moment to reflect on whether you, as an individual and as a member of a leadership team, possess the four qualities mentioned above. I genuinely believe that both individual executive coaching and team leadership development strategies can foster these skills. Moreover, they can strengthen the team, enabling it to overcome internal and external challenges more effectively.
Contact us now to explore Culture To Fit's executive and team coaching programs. Let's shape a strategic path for your success together. Reach out for a discussion that could transform your leadership journey.
Revised January 2024
Written by Annie-Mariel Arroyo, PH.D
Dr. Annie-Mariel Arroyo-Calixto is a practiced organizational psychologist with more than 28 years of professional experience in organizational change and leadership development. Dr. Arroyo is the founder of Culture To Fit, where for the past 22 years, she has helped leaders build or reshape their organizational culture and lead transformation. She is a seasoned leadership educator and a renowned executive coach known for her ability to guide leaders in gaining deeper insights and self-growth.
