Culture can maximise reward
May 11, 2020Scenario planning
May 11, 2020The disruption of Covid-19 has brought rapid, unexpected change in many forms, and with it the need to think strategically about how to re-set our businesses, organisations and teams for the uncertain and still ever-changing future ahead.
What is it?
Strategic thinking is a process we go through to decide on a strategy that answers the question: What direction should we take? Strategic planning comes afterwards and provides the nuts and bolts details. It answers the question: How are we going to get there?
Process
Here we focus on a strategic thinking process that is based partly on the work of Professor Richard Rumelt and encompasses application of these essential skills:
- Complexity: the ability to think clearly about a lot of information that is dynamic and changing
- Creativity: the ability to free ourselves from the status quo and create something new
- Chaos: the ability to navigate the chaos of strategy – uncertainty, change, risk, and messy data
The process starts with getting ourselves into a space where we can do our best thinking. It then involves zooming out to understand the facts of the situation we are facing in light of our purpose and goals. The next task is simplifying the complexity by zooming in on the core issues that we want our strategy to address. Finally, we apply a design mindset to develop possible solutions which we treat as prototypes and evaluate before implementing, testing and adjusting.
Strategic Thinking process
| 1. Create the time and headspace for thinking One of the biggest barriers to strategic thinking is time to think. Leaders and business owners are often caught up in day to day demands and struggle to find undistracted, quality time for thinking. Stress also reduces your headspace for quality thinking and your creativity, and makes you more likely to be reactive rather than thoughtful in your decisions. Questions Do you have time and headspace to do your best thinking? How important is this process for you? Are you able to prioritise it? If not and it is important, what changes can you make to create time and headspace? How are your stress levels? What have you done to manage stress in the past that has been helpful? What changes to you need to make to position yourself to do your best thinking? Tips and further information These can be tough questions, so be gentle on yourself. Talking to a coach, friend or family member can help. Learning a new process requires a mindset that you can learn and grow. | ||
| 2. Define your purpose Questions What does your business/organisation/unit/team do? Why does it exist? Tips and further information Hold this lightly throughout the process. With a significant disruption like Covid-19, sometimes even purpose needs to be redefined. You can come back to this if the need becomes clear later on. | ||
| 3. Define your goal Questions What do you want to achieve in the current context? What is the goal of the strategy you are creating? What do you need a strategy for? Tips and further information Ensure your goal is achievable and relevant. | ||
| 4. Zoom out to gain a broad appreciation of your situation Questions What do you know about your business and the context of the current situation? What information is relevant to achieving my goals? Tips and further information Take time to write everything down. Use mind maps if they suit the way you think. When you think you are done, ask ‘what else’? Ask for others’ input to avoid your own biases. At this point the complexity might feel overwhelming. Notice this very normal feeling, let it pass you by. You will soon be drawing out the most important parts. | ||
| 5. Zoom in on the core obstacle or challenge Questions What do you know about your business and the context of the current situation? What information is relevant to achieving your goals? Tips and further information Take time to write everything down. Use mind maps if they suit the way you think. When you think you are done, ask ‘what else’? Ask for others’ input to avoid your own biases. At this point the complexity might feel overwhelming. Notice this very normal feeling, let it pass you by. You will soon be drawing out the most important parts. | ||
| 6. Decide on a response Decide means to ‘kill off alternatives’. Make sure your chosen response is a decision about what to do, as well as what not to do. Try not to be or do everything, but instead make a choice about how to focus your efforts and resources on doing one thing (or complementary set of things) well. Questions What type of response do we need to address this challenge or overcome this obstacle, in order to achieve our goal? Tips and further information Think of this as a doctor deciding on a treatment response – like referral to a certain specialist or medication and lifestyle change. Creativity can be useful at this point to help with seeing new options and avoid being constrained by what your business has done in the past. | ||
| 7. Detail coordinated/synergistic actions Questions How would we do that (the response)? What actions would we need to take for that type of response? What set of actions will coordinate our efforts and resources to be most effective? How can we leverage our strengths and resources? Tips and further information Think of this as the specific prescriptions a doctor would make eg. anti-biotics. Consider the products/services you offer, distribution channels you use, staff capabilities you build, the purchasing, marketing and sales methods you use, flow of information throughout your organisation, who makes decisions etc. | ||
| 8. Evaluate Questions Is this response feasible? Is it in line with our purpose? Where does this response and these actions place us in relation to our competitors? Does it give us an advantage or point of difference? Is this response the best chance of achieving our goal? Might there be other options? What sort of change might we need to plan for? Tips and further information After all this hard work it can seem daunting to look for other options. Pause to reflect on the thoughts and feelings you have about taking the time to consider other options. Then consider whether those thoughts and feelings are serving you well – or are they making you avoid going back to the drawing board? Chaos is unavoidable. There will always be change and uncertainty. Reflect on how you respond to it and how you can let go of perfect plans and position yourself to respond whenever changes occur. See Scenario Planning resources on this page | ||
For leaders who want further guidance, a more detailed version of the process is available free from Nina Field by completing this contact form.
For more information contact Nina Field, Organisational Psychologist. nina@ninafield.co.nz or phone 021 86 89 87