Fifthly, strategic planning guides companys direction whereas strategic thinking strategic thinking makes foresights about the future olson and simerson, 2015. Strategic thinking and operational thinking may seem like two separate planes of existence. Strategic planning is an organization s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. Dec 23, 2016 when you move from operational work to strategic work, the biggest difference is one of structure. The thinkers guide to the art of strategic thinking 25 weeks to better thinking and better living first steps to becoming a critical thinker by dr. I will use examples from world war ii in order to level the playing field and convey these ideas in their most basic. Tactical operational thinking time period longest period worth considering shortest period worth considering reversability harder easier scope broad narrow affected areas many functional areas few functional areas goals means and ends means only the strategyoperations relationship be a. Strategic planning is an organizations process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. Start a conversation about the things influencing your operation and get as many insights as you can. A strategic plan usually consists of a vision and a mission statement, a financial or operational objective, an estimate of the resources required, and a summary of how the initiative fits in with the companys overall mission. Strategic thinking skills is a simple and comprehensive guide to the skills, tactics, techniques, tools, case studies, and lessons behind this allimportant process. Understanding military strategy and the four levels of war. Strategic planning whenever the word strategic is uttered, most people think of planning rather than thinking. At this level, campaigns and major operations are designed, planned, conducted, sustained, assessed, and adapted to accomplish strategic goals within theaters or areas of operations.
These activities imply a broader dimension of time or space than do tactics. Unfortunately, in most companies the strategy resides solely in the head of the ceo. Operational thinking is about how to accomplish those goals including the resources needed. Gain operational and strategic leadership skills and more with asq s emerging quality leaders program eqlp. Operational versus strategic safety roles safety risk. You can either follow what worked before in your organization, or what the others in your industry are doing today. Pdf an organizations strategy consists of many factors that form a formula or road map to provide guidance concerning the organizations.
Generally, strategic planning deals, on the whole business, rather than just an isolated unit, with at. As leaders, we like to think of strategic thinking as the overarching thought process that guides an organization in its key decisions and general corporate direction, while operational thinking focuses on the tasks that are completed at ground level. Your company could have persistent operational problems that prevent it from maximizing success, so you and your employees must think critically about the root causes of problems. Strategic thinking is not the same thing as critical thinking. Using both virtual and onsite learning sessions, individuals develop leadership skills within a select group of rising quality professionals.
So while thinking in a certain manner can be a natural or a nurtured attribute, planning strategically is a process that drives results or needs tactical actions to be defined within its framework. Comparing strategic thinking and critical thinking is like comparing running and a pair of shoes. Critical thinking published on january 12, 2017 january 12. In working with our clients, we find that most have a relatively strong understanding and appreciation for the value of strategic planningmanagement. If youre sighing and thinking, great, one more thing i have to. Strategic surprisingly, here there is ready agreement. As leaders, we like to think of strategic thinking as the overarching thought process that guides an. Strategic thinking process decision processes international. Operational ive been throwing the words strategic vs.
Pdf strategic operations management radhitya wirawan. In this strategic thinking training course, you learn to plan and implement change to meet stakeholder needs, create an innovative culture that takes advantage of the departments core competencies, and gain the leadership skills to effectively integrate strategic thinking with. Strategic planningmanagement gives voice, action and structure to strategic thinking. The next three systems thinking skills operational, closedloop, and quantitative thinking help you specify the relationships that reside within the boundaries you have established. Because many people are directly connected to and support the operational engine in one way or another, operations is easy to understand. As we have discussed in the beginning that planning can be done for anything, so. Difference between strategic planning and operational.
The leader tries by strategic or longrange planning to assist the company. These are the political, strategic, operational, and tactical levels of war. Strategic thinking and strategic management strategic planning is only useful if it supports strategic thinking and leads to strategic management and, even more importantly, execution. Dear reader, there is a difference between doing something and doing it well. The strategic level focuses on defining and supporting national policy and relates directly to the outcome of a war or other conflict as a whole. If the intent is an initial course of action open to change and chance, then we can use that term. How to keep your board strategic get on board australia. Whats the difference between strategic thinking and. Moving from an operational role to a strategic leadership role. The operational level of war lies between the strategic and tactical levels. May 24, 2014 operational versus strategic safety roles guest post by george robotham see more of his work here operational planning is the day by day and month by month planning for what your organisation is doing. Statistics show that fewer than 10% of leaders exhibit strategic skills, a woefully inadequate number considering the demands on. Operational falls out of the strategic thinking so the last is most important. Most individuals can successfully explain what the operational side of the business does.
I would like to begin by saying i disagree with the use of the term plan when discussing strategyoperationstactics. If youre sighing and thinking, great, one more thing i have to start doing, hold up. Your strategic plan outlines longterm goals for the next three to five years. In strategic thinking, the future should be created based. What youll be doing to achieve those goals in the shorter term typically the next fiscal year is outlined in your operational plan. In both individuals and organizations, and in the absence of a coherent strategy, nonstrategic factors, such as bureaucratic and organizational imperatives, will fill the void to the detriment of the. Operational is something that helps things to work smoothly today, and requires constant attention, while strategic is something from the world of top managers, defined for a longerterm, often less tangible, but still very important. Of course ive known the words for as long as i can remember, but joining my first board has given the words a new context. Role of strategic thinking in business planning business. What are the key opportunities and threats we face. In a strategic role, you take a leadership position. Practical examples of strategic decisions that you may experience on your board include the approval of the acquisition of another company, expanding the organisations geographical scope of operation, agreeing with the proposed introduction of new products and services, budget approvals, increased research and development investment, hiring. Leaders need the input, ideas, and commitment of every team member to solve problems, spot opportunities, make effective decisions, and find productive ways of executing on critical strategic initiatives. Lets define strategic, tactical and operational planning.
Though related, operational thinking should not be confused with the terms operations, operational, or business operations, which pertain to the ongoing activities of the business to produce and deliver its offerings operational thinking is generally referred to as a type of systems thinking. Operational thinking deals with a single, micro process or as dilip suggest a specific small objective or indicator for one of the objectives. As leaders, we like to think of strategic thinking as the overarching thought process that guides an organization in its key decisions and general corporate direction, while operational. Oct 14, 2016 a strategic thinker knows that you get what you pay for i. Strategic thinking process a clear, wellarticulated strategy defines the corporate mission for those charged with carrying it out. Walk the talk model great strategic thinking in how you approach your own decision making, problem solving, crisis management, etc. Strategic planning is done by top level management, whereas the operational planning is a function of middlelevel management.
Conversely, operational planning is concerned with the internal environment of business. Strategic thinking contrasted with operational thinking. Strategic thinking versus operational thinking dr robin c hesler both have to go hand in hand. To be a strategyfocused company, you need a strategic plan and departmental operational plans. Sixthly, strategic planning and strategic thinking have to sustain each other in order to contribute in an effective manner to the deployment of the strategic management process.
During the highlevel strategy formation phase, leaders thinking strategically will drive alignment around analyzing the opportunities from the widest possible perspective and understanding. Jun 26, 2019 the operational plan is the shorttime plan which lasts for a year or six months period, although the policy in this type of plan can be immediately changed. Take time, as an hr team, for a strategic thinking retreat where you escape from the tactical and operational levels if even for a halfday. In reality, though, they are more like two sides of the same coin. Strategic thinking training for operational management. Difference between strategic thinking and strategic planning purpose the purpose of strategic thinking is to envision or develop a solution. Over the years, large organizations have relegated strategic plans to the planning department and inadvertently created a bureaucracy. The difference between strategic management and strategic. Strategic thinking defined greg githens, executive. The distinction is ots focus is on success in the present. Both strategic management and strategic planning are keys to business success in any industry, but few know the difference between the two. Strategic planning takes into account the internal as well as the external environment of business. Operational and strategic plans can tend to be massive documents that no one will ever read or follow.
Department of army, 2005 discusses operational design in. Usually, modern wars and conflicts are won or lost at this level rather than at the operational or tactical levels. Strategy has never been more challenging, or more important, than in. Add value to your organization by aligning department goals with your organizations strategic vision and mission. Dec 30, 2015 strategic thinking informs strategic planningmanagement. It is also to enable brainstorming of approaches that can help to meet the strategic intent and goals of a specific project or initiative.
The definition of operational thinking as defined here comes from the systems school of thinking. Operational thinking strategic planning design firm leadership series by philip a. Rich horwath, ceo of the strategic thinking institute, found in his research. Strategic planning determines the entire direction of your organisation. Execution planning in reality, eff ective strategic planning requires two very diff erent ongoing processes and teams if youre going to generate the kinds of results worthy of the eff ort that goes into a serious planning process. Jan 28, 20 strategic thinking is defined as the individuals capacity for thinking conceptually, imaginatively, systematically, and opportunistically with regard to the attainment of success in the future. As management attempts to implement the strategy, the organization zigzags from event to event, lacking clear direction. Strategy is also a bridge between the present current situation and future ideal situation. Leadership, innovation, strategic planning, strategic thinking, organization. The ultimate goals set in the strategic planning are thoroughly looked and the clear picture or the plan is formulated to achieve the longterm.
Strategic thinking and subsequent management must result in action. Lariviere paces, llc i was recently asked to develop a program on strategic thinking for presentation to a large group of senior global marketing professionals operating in the united states, europe, the middle east and asia. Pdf strategic thinking and strategic planning are concepts that are not. Oct 27, 2010 strategic leadership doesnt come easily in most organizations. This lies between tactics and strategy, affecting perhaps an entire product line but not the organization, or the business processes used repeatedly and changes to them.
Jagdish sheth, a respected authority on marketing and strategic planning, provides. Finally, the team executes through disciplined action. Operational is something that helps things to work smoothly today, and requires constant attention, while strategic is something from the world of top managers, defined for a longerterm, often less tangible, but still very. Others assume that watching ted talks or lectures by futurists will help them think more strategically. Generally, strategic planning deals, on the whole business, rather than just an isolated unit, with at least one of following three key questions. Over the years, large organizations have relegated strategic plans to the planning department and inadvertently created a. Strategic thinking in business, strategic thinking involves a significant commitment of organizational resources, funds, or energy. Operational thinking, like strategic thinking is purposeful. Strategic thinking versus operational thinking arlene grant, trinidad and tobago, member i agree with dilip. The three strengths of a true strategic leader forbes.
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