Strategic thinkers enhance their value to any project or organization due to their exceptional skills. One of their key strengths is their ability to view the entire value-creating system. They understand how the various components of an organization interconnect. Instead of focusing on just one element, they take a holistic approach to everything.
Here's a tip: If you want to develop your strategic thinking and gain a broader perspective of the system, begin with the first competency of strategic thinking and use the 5 C's.
Let's Dive Into The 5 C's
First up - Customers
It’s easy to read or hear the term "customers" and overlook internal customers. For some roles, particularly support functions, you may not engage directly with external customers as others in your organization do. However, you still have customers to serve.
Strategic thinkers recognize that they have individuals who rely on their work outputs. They also understand that they, in turn, are customers of others who provide them with products or services. By considering internal customers, you broaden your capacity to think strategically about a larger portion of the business. To better understand your customers, consider the following:
QUESTIONS – Who are my customers? What do they want? How will their needs evolve? What does my ideal customer look like?
LEARN MORE – Conduct customer surveys, organize focus groups, collaborate with colleagues, and, if possible, become a customer yourself.
2nd - Company
How well do you understand your company? Strategic thinkers view their role as integral to how the company creates value. They focus on their work and ensure it contributes positively rather than taking away from that value. They also inspire others to see their work as more than just a job—it’s about how the company delivers value to external customers.
QUESTIONS – What aspects of the company’s strategy do I not fully understand? Can I summarize the company strategy in a clear and concise way? How does my department align with that strategy? Where do I fit within it?
LEARN MORE – Tune into the CEO's presentations to the board, investors, and other stakeholders. Explore the company website, newsletters, and internal communications for insights on the company strategy. If available, read the company’s annual report. Review the company’s advertisements and press releases. Examine marketing and product materials. Attend meetings where company strategies and outcomes are discussed. Volunteer for cross-functional teams and task forces.
Competitors/Industry
Competitors can either present a challenge or an opportunity. Strategic thinkers recognize that competition can drive improvement within the company, and they actively seek ways to enhance the value of the products and services offered. By thinking strategically, you identify ways to outperform the competition and pose a long-term threat to their sustainability.
QUESTIONS – Who are our current competitors? What strategies are they using? How do we differentiate ourselves from them? What strengths do they possess that could challenge us? What weaknesses could we capitalize on? Where is the industry heading? What trends in technology, government policy, natural resources, and other key forces might significantly impact us?
LEARN MORE – Become a customer of your competitors. Research and read analysts' reports about competitors (especially for publicly traded companies). Network with professionals who have insights into competitors. Attend trade shows to observe what competitors are doing. Keep up with reputable business publications. Engage with knowledgeable professionals in the field. Join trade and professional associations.
Co-workers
Businesses don’t generate results on their own; it’s the people within the business who make it happen. You and your co-workers are the driving force behind the company’s success or struggles. The attitudes of both management and staff directly influence the quality of products and services. This is why strategic thinkers are essential—they help foster the right mindset and values within the team.
QUESTIONS – Which business processes are affected by each person? Who is involved in these processes? How can we identify and understand the roles and responsibilities within them? What are their objectives?
LEARN MORE – Connect with other managers in the organization to build your network. Ask about their challenges and needs, and find out how you can support them in achieving their goals. Gain their perspective on the company’s strategy, planning, and execution. Get their feedback on the ideas you are considering and discuss how your work processes impact others. Collaborate to make sure your ideas benefit everyone. Do they foresee any issues with your plans? What suggestions do they have for improving them? Consult with those impacted by your plans to determine what changes are needed to make them work for everyone.
Culture
Culture is a somewhat abstract concept, but it becomes tangible when you observe people's actions, behaviors, and attitudes. It represents the underlying framework that shapes how individuals in the organization behave.
While assessing culture at the company level can be challenging, it’s often easier at the team or group level. Strategic thinkers focus on these smaller parts of the business, identifying where changes can be made. They translate the company's purpose, values, and leadership behaviors into actionable goals for teams, helping first-line supervisors address what's happening within their groups. Culture change is more manageable at this level but always remains influenced by the overall company culture. It requires courage and discipline to embrace change in an environment that needs it.
As teams adapt to align with the company’s core values and purpose, the culture of the organization begins to shift. It’s also crucial to recognize that top management must embody the company’s core values for cultural change to be truly effective.
QUESTIONS – What is the company’s purpose, mission, and values? Which values are most and least visible? Is the culture more focused on performance or personal connections? What legal changes are influencing how we do business? How political is the organizational environment? How is the culture evolving? Who holds power or influence within the company? Identify individuals who are influential despite not holding formal titles. What makes them effective? Who drives results and has the attention of decision-makers?
LEARN MORE – Review the company’s Purpose, Mission, and Values statements. Have discussions with your supervisor and colleagues about how they perceive the company’s culture. Assess whether the company’s actions align with its stated Purpose, Mission, and Values.
Let us know how these 5 C's helped you with your strategic thinking process.