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Tuesday, July 29, 2014

Identify Strategic Thinking with One Simple Question

By David Wilsey

I used to work on a research team for a company that produced an operational risk software product. I always found it interesting how different members of the same team answered an important question: what do you do?

Here is the way Person A and Person B responded:

Person A: We do research on the internet and enter data points into an operational risk database.

Person B: We help banks understand operational risk and how much related capital they were required to reserve by providing an analytical software solution that models operational risk in the global market.

Technically both answers were correct. For the data model to be statistically significant, the product needed a certain number of data points, and our research team’s job was to research and categorize examples of operational loss in order to populate the database and make the model work. And yet, somehow Person A’s answer was always unsatisfying for some people.

It might be tempting to say that Person B was simply exaggerating the importance of their work by describing it in terms of the mission of the product line, but I think that misses an important point about the value of thinking strategically no matter what your position with the organization is. Person A was simply describing our job. Person B was describing how we created value. Different ways of describing our work was actually a window into the strategic thinking style of the team members.

From Daniel Pink to Simon Sinek and others, much has been said and written about how people are more motivated and productive when they understand the larger context for their work. Understanding why they are doing the work is profoundly important for creative professionals to feel a sense of engagement. Helping employees transition from narrowly thinking about what they do to more broadly thinking about what they are trying to accomplish can improve organizational performance in a number of ways.

The good news is that strategic thinking is a teachable skill. In our BSC Certification courses, we begin by teaching the basic semantics of strategy. At first, students mechanically append or replace the “task” language that most are comfortable with (we need to develop a new service by milestone x) with language that reflects a higher level objective (we want to improve the customer experience; the development of a new services is one option for accomplishing that). Over time, mechanical semantics evolve into an instinct for intuitively thinking about the strategic context. As students change the way they think about strategy and action, critical thinking skills improve as well (e.g. if we are trying to improve the customer experience, is a new service really the best way to do it?). The transition for many teams from always focusing on tactics and actions to always starting with the big picture and working down can be quite profound.

For more about how to improve strategic thinking in your organization, see our Balanced Scorecard Certification Program or The Institute Way: Simplify Strategic Planning and Management with the Balanced Scorecard.
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Author: David Wilsey
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David Wilsey

David WilseyDavid Wilsey

David Wilsey is the Chief Operating Officer with the Balanced Scorecard Institute and co-author of The Institute Way: Simplify Strategic Planning and Management with the Balanced Scorecard.

Other posts by David Wilsey

Contact author Full biography

Full biography

David manages BSI's business operations and supports all business lines. He has many years of experience managing BSI's certification programs and leading consulting and training client strategic planning and performance management projects, including Northwest Fire District, UNICEF, KeyLogic Systems, Jacksonville Regional Chamber of Commerce, National Cancer Institute/OPIRM, Greenville Utilities Commission, the U.S. Centers for Medicare and Medicaid Services, Wake County Community Services and Chicago Virtual Charter Schools and many others. He has been a featured speaker at the semiannual IQPC/BSI Strategic Performance and Change Management conferences, and events hosted by organizations such as Robert Half, Actuate Inc., McLeod Software, the Association for Strategic Planning, and the International Society of Performance Improvement.

David has over 20 years of experience in a wide range of fields, including consulting, engineering, marketing, manufacturing, design, programming, research, education, and multimedia production. He is a member of the Association for Strategic Planning and is a certified Strategic Management Professional (SMP). He is also a licensed PuMP® Consultant. He has a Bachelor's degree in Music Education from Henderson State University and an MBA from North Carolina State University, with a concentration in Innovation Management.

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