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Strategic vs. Operational Thinking: What's the Difference?


by Bob McCulloch

Examining strategic and operational thinking

Strategic thinking and operational thinking may seem like two separate planes of existence. In reality, though, they are more like two sides of the same coin.

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.” And it’s those tasks completed day-to-day that ensure strategic goals are being met. In order to function effectively, organizations need both kinds of thinking

Most leaders would agree that without strategic thinking, there would be no basis on which to guide operations. But you can make the opposite case just as convincingly: without operational thinking, there would be no way to put those innovative strategies into action. And there is a time for both kinds of thinking.

Strategic thinking focuses on the “whys” and “whats” of your organization:

  • Why are we in business?
  • What is it that we really want to be doing?
  • Why is it important?
  • To be successful, what do we need to start—or stop—doing? …and what could we do more—or less—of?

What do all of these questions have in common? They are all part of the conceptual and often longer term thinking process. We engage in strategic thinking when we want to focus on the future, but most of the work done in any organization happens in the present. That confirms why most jobs require operational thinking which is firmly grounded in the present. When we’re busy coping with the urgencies of the moment, we feel we can’t afford to think strategically. We need to concentrate on the “hows” instead of the “whats” and “whys”:

  • Doing things right as distinct from doing the right things.
  • Focusing on the means as distinct from ends.
  • Driving the vehicle as distinct from drawing the map.

It’s no accident that most organizations ask their employees to devote most of their time to operational thinking. Operational thinking drives productivity. It’s also the “validator” for effective strategy. You might even go so far as to say that without operational thinking, there would be no strategy. At the same time, without strategy, there would be nothing to guide operational thinking.

But because leaders are responsible for both the present and the future of the organization, both kinds of thinking are integral parts of their job description.

The difference between leadership positions and non-leadership positions is that as an employee, your longest unsupervised task might last about 90 days, whereas leaders may work unsupervised on tasks with yearlong or multi-year horizons where day-to-day details are rarely a factor.

Both kinds of thinking are integral to an organization’s success; they are not mutually inclusive. Each type of thinking needs to happen regularly: team strategic thinking needs to happen at regularly scheduled intervals, for example. Following this strategic thinking, formal reviews and adjustments (where needed) must be undertaken and, finally, tactical and operational business decisions must be continually assessed against the stated strategic direction.

Strategy is crafted with going concerns in mind. As such, the first phase in strategic thinking could be considered to be one where the leadership “steps back to move forward.” This means that the team may assess the current situation, determine what is working or is not working, and then devise a strategy to improve metrics across the board. The lines between operational thinking and strategic thinking are thus blurred, with each interacting and interweaving with the other to encourage the most optimal results.

By balancing both kinds of thinking—each in its due time—leaders can move from idea to action and chart a course from the present to the future, then improvise along the way using the strategy as a decision-making filter, as obstacles and surprises present themselves.


Bob McCulloch

Bob McCulloch is a recognized authority in providing strategic guidance and executive coaching for tomorrow’s top business leaders. Employing a question-based approach and with over 40 years’ experience, he is able to build strong, trust-based relationships with senior-level executives who are looking to move the needle in their careers from good to great.


  

 

 
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