The sole purpose of strategic thinking is to enable an organization to gain, as efficiently as possible, a sustainable edge over its competition.
If leaders don't make smart judgment calls about people on their teams, or they manage them poorly, then there is no way they can set a sound direction and strategy for their department, business unit or enterprise, nor can they deal effectively with crises.
The most critical knowledge for an executive is self-intelligence or an awareness of his or her personal beliefs/assumptions, values, guiding principles and vision. And being emotionally intelligent about knowing how the people in the organization will respond, adapt and execute matters. Leaders can also fail when they lack contextual knowledge due to not knowing the territory; commonly referred to as the corporate culture. This knowledge gap can lead to difficult problems from direct reports to the board of directors. Every department, business unit, division and enterprise has a culture that the leader must respect or the culture will push the leader out.
Once you understand your leadership style and focus, it's important to think strategically about the vision you have for the organization. Here are some steps in forming and communicating a future corporate vision:
1. What are the drivers of the business and how does your firm differ from its major competitors?
2. What is your present leadership role in setting the direction of the organization?
3. How strong are you in perceiving the intangible corporate culture---the feelings, assumptions/beliefs, values and vision of the key people within the organization?
4. How would you best play your role in moving the organization to where you think and feel it needs to be without causing a significant push back to your communicated vision?