On today’s episode we are talking about how leaders neglecting strategic skills might be killing your company.
Rich Horwath, founder and CEO of the Strategic Thinking Institute, helps executive teams enhance their strategic capabilities. He is the bestselling author of eight books, including “STRATEGIC: The Skill to Set Direction, Create Advantage, and Achieve Executive Excellence.” Rich has assisted over a quarter million leaders in developing strategic thinking skills, with his work featured in Fast Company, Forbes, and the Harvard Business Review. He has appeared on major TV networks like ABC, CBS, NBC, and FOX.
Key Discussion Points:
- A consistent definition of strategy is crucial. Without a shared understanding, organizations waste time and resources. Strategy is the intelligent allocation of limited resources through a unique system of activities to achieve goals.
- Establish clear planning horizons: short-term (quarterly), mid-term (annual), and long-term (three years). Ensure everyone in the organization understands and aligns their efforts with these time frames. Include specific milestones to track progress and adjust strategies as needed.
- Engage in ongoing strategic thinking to gather insights and adapt plans. Use frameworks like business model innovation to foster creative thinking. Regularly revisit and adjust strategies through quarterly tune-ups. Maintain strong communication and collaboration across all organizational levels to ensure alignment and agility.
- As Jeff Weiner, CEO of LinkedIn, emphasizes, the key to effective time management is carving out time to think strategically rather than constantly reacting. This practice should be non-negotiable, with leaders dedicating at least 90 minutes weekly to high-level business thinking and 60 minutes with their teams to focus on strategic issues, not operational or tactical matters.
- Strategic thinking sessions must have structure. Leaders should consider three main areas: the external environment (market, customers, competitors), the internal environment (culture, strategy, processes, systems, people), and innovation (emerging customer needs and future value). This structured approach ensures comprehensive analysis and forward-looking strategies that prevent obsolescence.
- Team meetings should avoid monologues and status updates. Instead, focus on discussing key business challenges and making decisions. Prior to meetings, teams should share two-page action plans and come prepared with critical questions and issues to address. This approach maximizes the productivity and strategic value of team gatherings.
Top Takeaways for the Audience:
The Three A’s:
- Acumen: Always seek insights and learnings from every interaction, whether it’s a meeting, email, or casual conversation. Consistently ask, “What’s the insight here?” and make it a habit to record these learnings. This continuous accumulation of knowledge enhances strategic acumen.
- Allocation: Effective strategy involves deciding what not to do as much as what to do. Regularly evaluate and cut off activities that do not contribute to strategic goals. This disciplined approach ensures resources and attention are focused on high-impact areas.
- Action: Develop and maintain a concise, actionable plan (one to two pages) that guides strategic initiatives. Engage in ongoing, interactive conversations with your team throughout the year to refine and execute this plan, rather than relying solely on annual planning sessions. This fosters agility and responsiveness to changing conditions.
These three A’s—acumen, allocation, and action—provide a practical framework for sustained strategic thinking and effective execution.
How to Connect with Rich:
Website: https://www.strategyskills.com/
LinkedIn: https://www.linkedin.com/in/richhorwath/
