Where is the Thinking Leading Us?

We need a reality check on the many ‘studies’ that have been published in recent months about various business challenges.  Their focus ranges from executives’ thinking time, organizational alignment, and capabilities for effective execution. These are in light of the dramatic changes that are foreseen to be brought on by AI.

In the other court are the experts in their field who are unwavering in their belief that AI is not the threat we are given to imagine it is by the tech firms.

I’d like to share some thoughts, observations, and ideas on this trend . . .  For the moment, I’ll focus on the thinking that, in some instances, seems to be short on completeness.  Why would thinking be short on completeness, you might ask?

There are several possibilities why business leaders don’t question the completeness of thinking – which includes critical, strategic, analytical and/or systems thinking.

I had an opportunity to connect with several senior leaders on this topic.  This is what was shared . . . .

  1. Overwhelm – Executives have a lot on their plate – It is easier to have someone else ‘look into it’ and provide a summary report. This approach is often used, though not ideal, to come to conclusions which may not be their own.
  2. Short-term Focus: Despite years of warnings to take a longer view, meeting short terms goals is still a priority.  This makes long-term planning and strategic thinking a distant necessity.  We can conclude from this practice that it is the main reason why so few CXOs have terms beyond three years.
  3. Misalignments:  In many cases, executives don’t see the disconnect between the C-Suite and the managers who are responsible for the outcomes of business strategies.  The incentives just don’t line up with the longer-term view.
  4. Complexity: The business environment was never easy, but it has gotten complex. Many executives struggle to keep up with the pace of change and the impact it can have on their business. Untangling the interdependencies takes time and focus – both of which are essential for quality thinking time.
  5. System of Capabilities:  The combination of capabilities (people, processes, systems, technologies, tools, and methods) is not considered in the context of the organization’s main purpose, value proposition, strategic objectives, outcomes, and strategies.   Many business leaders struggle to align their company’s resources and system of capabilities to ever-changing needs.

The thinking skills mentioned above can be developed with practice and coaching.   The reasons why it can be so – are simple.

Critical thinking, systems thinking, strategic thinking and analytical thinking share several common elements, even though each is unique

The commonalities are:

  • Context is King – All thinking requires an understanding of the broader context. The context is established with the strategic objectives as a start, followed by an understanding of what ‘Outcomes’ are to be achieved.
  • Open-mindedness: All thinking requires an open mind. This means being willing to consider different perspectives and alternatives to achieve the end game.  It may mean having to change one’s attitudes and opinions considering new information.
  • Logical reasoning: All thinking relies on logic and reasoning to make decisions and draw conclusions. This means analyzing information and evidence to identify patterns and their relationships and then drawing viable conclusions based on the analysis.
  • Evaluation of evidence: Critical thinking involves evaluating evidence and information drawn from details that help to determine credibility, accuracy, and relevance to the business context, whether it be risks or problems.

In summary, these are the salient commonalities – there are more, but these will suffice for now.

Original thinking is the one activity that an AI cannot be foreseen to perform on behalf of humans.  In the organizational context, thinking is essential in planning strategy, change and managing risk. These three aspects are what I refer to as the ‘Keystones of Business’. It all comes down to this.

Think about it . . .

It involves decision-making on allocating the resources that comprise the system of capabilities.  It includes assessing the current state of organizational alignment – a place where there is little room for independent judgement because of the many influences from internal and external environments.

Strategy, change, and risk are the brew necessary to capitalize on opportunities that spell future growth and success.   Change, even though it may be disliked, is often necessary to keep up with evolving market trends, technology advancements, and other external factors that may impact the organization.

Change carries with it some degree of risk.  Risks can arise from various sources, including changes in market conditions, unforeseen obstacles, or internal resistance to change.  Poor planning contributes to risks that can impact the execution of strategic initiatives.  Effective management of risk is essential in the context of strategy and change.

Analytical thinking is important for risk management because it enables individuals to gather, process, and analyze data to make informed decisions about potential risks. The process allows individuals to break down complex information into smaller components, identify patterns and relationships between different data points, and identify risks based on the available information.

Analytical thinking further helps individuals to identify and minimize potential cognitive biases or errors in their analysis that may lead to inaccurate risk assessments or ineffective risk management strategies.

This approach enables individuals to make more accurate likelihoods about potential risks, which in turn allows them to develop more effective strategies and changes to achieve strategic objectives.

Learn more about the resources available through Uvidi Management Solutions to upgrade your thinking skills.

InfoDesk@uvidi.ca

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