What is Strategic Thinking and Why is it Important for Organisations?
The conventional theme of strategic thinking is the ability to be able to anticipate major shifts in the competitive marketplace and also to identify emerging opportunities. Strategic thinking is a Learning and Development process that involves Decision Making about what actions the company or organisation needs to take to become more successful. In strictly conservative terms this includes a document that is created once a year to function as a guideline for the management team of a company or organisation. This process however, has great importance and should necessarily not be restricted to being a yearly process instead should be adopted as an ongoing approach.
What is Strategic Thinking and Why is it Important for Organisations?
The process of strategic thinking is important for an organisation in multiple respects and should not be restricted, instead should be made more flexible as a better learning and development strategy.
Dealing With the Limited Resources
A problem that affects all businesses and organisations is the limitation of resources like that of time, people and money. The process of strategic thinking helps in dealing effectively with the limitation of these resources and helps an organisation move towards the fulfillment of it’s objectives. Strategic thinking helps the company avoid costly mistakes, such as opening a new retail location before the customer population is large enough to support it 1
Coping With the Changing Environment
Adaptability to change is necessary for the sustainability of an organisation. The changing environment includes not only the rise in threats for a business or organisation but also the increase in the emergence of opportunities. Strategic thinking is the Learning and Development process that helps you deal with these changes, and better adapt to them. The quick reaction to a change at the part of a company is what allows it to take advantage of opportunities while at the same time dodge and minimize the damage of unexpected negative dynamics.
Improved Decision Making
When an organisation tends to take on strategic thinking as a central element of their management philosophy, they end up gaining insight into various other avenues of success for the organisation. They learn to identify even the most minute of changes in the business environment that will have a direct impact on their revenues, things that they might not have been able to identify when not having adopted the more effective approach through strategic thinking.
Fulfillment of The Need to Grow
Every organisation is under a constant pressure to grow, for that remains the indicator of high profitability and a good learning and development strategy. It also means that an organisation is succeeding in the competitive struggle. The process of strategic thinking forces organisations to realize how they can not afford to take a static approach but have to be dynamic. This dynamic approach can only be obtained through the Learning and Development process which is a product of strategic thinking. It is therefore, important to focus upon strategic thinking as a vital part of the Learning and Development Process of an organisation.