A Few Thoughts on “Strategic Thinking”Pharmacy Practice Management Leadership Strategic Management Management Corporate competencies, products, services Environment, market, customers Change Complexity Planning, Organizing, Executing, Controlling Innovate, Influence, Inspire, Investigate Longer Term Shorter TermAspects of Strategic Management • Strategy Development – Consists of a process or approach, – guided by the vision for the entity, – which assesses Strengths, Weaknesses, Opportunities and Threats [SWOT], – resulting in decisions to allocate limited resources, – for the purpose of establishing and/or accomplishing one or more defined goals/objectives.Aspects of Strategic Management Strategy --- represents --- HOWThe Business Model Qualitative Quantitative A business model describes the rationale of how an organization creates, delivers, and captures value - economic, social, or other forms. The process of business model design is part of business strategy. In theory and practice the term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies. (http://en.wikipedia.org/wiki/Business_model)Aspects of Strategic Leadership & Management • What is the “take-home” message from the Youtube video?Aspects of Strategic Leadership & Management • What is the “take-home” message from the Youtube video? WHY --- HOW --- WHATAspects of Strategic Leadership & Management • How does this compare with the Business “MO” and the Business Plan” WHY --- HOW --- WHATAspects of Strategic Leadership & Management • How does this compare with the Business “MO” and the Business Plan” WHY --- HOW --- WHAT MISSION/OBJECTIVES --- STRATEGY --- TACTICSBusiness Modus Operandi Why are companies in business? Profit Take Reward Value Give WorkAspects of Strategic Leadership & Management Ten Ways to Test Your Strategy: McKinsey Quarterly, January 2011Ten Ways to Test Your Strategy • Is your strategy beating the market of accomplishing the goal?Ten Ways to Test Your Strategy • Does the strategy tap a true source of advantage?Ten Ways to Test Your Strategy • Is the strategy granular about where to compete?Ten Ways to Test Your Strategy • Does the strategy place you ahead of trends?Ten Ways to Test Your Strategy • Does the strategy rest on privileged insights?Ten Ways to Test Your Strategy • Does the strategy embrace uncertainty?Ten Ways to Test Your Strategy • Does the strategy balance commitment and flexibility?Ten Ways to Test Your Strategy • Is the strategy contaminated by bias?Ten Ways to Test Your Strategy • Is there a conviction to act on the strategy?Ten Ways to Test Your Strategy • Has the strategy been translated into an action plan?“Strategic Thinking” “As the criticisms of business education show, current analytical-functional, quantitative, tools-oriented, theoretical, left-side of the brain, overspecialized, compartmentalized approaches --- are not adequate --- to begin solving ill-defined, unstructured, ambiguous, complex, multidisciplinary, holistic, real world problems.” Plaschka, G. R. & Welsch, H. P. (1990). Emerging structures in entrepreneurship education: Curricular designs and strategies. Entrepreneurship: Theory and Practice, 14 (3), 61“Strategic Thinking” – Strategos: The art of the general – Greeks considered strategic wisdom as an oscillation between different positions or perspectives focused upon a particular objective. – Moving between certainty and uncertainty. – Interestingly, strategy only really began to appear in the business environment in the 1980’s!“Strategic Thinking” – Components: • Will for achievement • Process or framework for achievement • Element of competition/challenge • Time horizon • Broad or major aim identified • Unifying intent • Decisions about resource allocation“Strategic Thinking” Five myths regarding strategic thinking:Myth #1 – Strategic thinking is reserved for the “chosen few.” – False: Strategic thinking can, and should, be used by everyone.Myth #2 – Strategy is something we get to do when we are “important”. – False: Strategic thinking is an important life skill.Myth #3 – Strategic thinking is confusing. – False: Strategic thinking can be taught and can be distinguished from strategic planning.Myth #4 – Strategy is reserved for MBAs. – False: This implies elitism and illusions of grandeur.Myth #5 – Strategy is complicated and difficult to assess. – False: Successful strategy is deceptively simple to see: either it works or it doesn’t!Critical Attributes to Learning to Think Strategically Intuitive Thinkers (natural strategic thinkers) vs. Analytical Thinkers (natural strategic planners)Ten Critical Attributes to Learning to Think StrategicallyCritical Attributes to Learning to Think Strategically • #1: Challenge and develop a distaste for the “status quo” • Do not accept the world as a “given” • Investigate under the surfaceCritical Attributes to Learning to Think Strategically • #2: Have imagination and creativity • Simply dealing with information in a concrete, linear way is insufficient • Ask “What if….”; focus upon different combinations of elementsCritical Attributes to Learning to Think Strategically • #3: Adopt a broad perspective for everything • Diversify and expand interactions with people • Become an excellent listenerCritical Attributes to Learning to Think Strategically • #4: Constantly juggle • Pay attention to many things simultaneously; everything affects everything else • Deal with incomplete, inconsistent, and constantly changing information and paradoxesCritical Attributes to Learning to Think Strategically • #5: Pay attention to what you CANNOT control • Do not waste time on elements you can control • Invest your time in following your fearCritical Attributes to Learning to Think Strategically • #6: Engage in reflective thinking • Enables the reframing of elements you cannot control • Become aware of, expect, and trust disorder, tension and unexpected elementsCritical Attributes to Learning to Think Strategically • #7: Take risks • Place yourself in a position of being a non-expert or novice •