Strategic thinking is a mental or thinking process applied by an individual in the context of achieving a goal or set of goals. It is a cognitive activity that produces thought and involves the generation and application of unique business insights and opportunities intended to create competitive advantage for a firm or organization. Strategic thinking can be done individually, as well as collaboratively among key people who can positively alter an organizations future.

Strategic thinking includes careful and deliberate anticipation of threats and vulnerabilities to guard against and opportunities to pursue. It involves seeing the big picture, developing realistic action plans to achieve specific goals, and being able to solve complex problems and plan for the future. Strategic thinking skills are any skills that enable you to use critical thinking to solve complex problems and plan for the future.

Here are some key characteristics of strategic thinking:

• Omnivorous when it comes to information: Strategic thinking is comfortable with using abductive reasoning and non-statistically significant data (qualitative, singular, analogous) on multiple variables to create a model about how you can influence, by actions on things you control, the future behavior of the key thing you don’t control — the customer.
• Recognizes the fundamental task of strategy: Strategic thinking recognizes that the fundamental task of strategy is to influence the variable that the strategist does not control, and in.
• Leverages abductive reasoning: Strategic thinking entails comfort with using abductive reasoning and non-statistically significant data (qualitative, singular, analogous) on multiple variables to create a model about how you can influence, by actions on things you control, the future behavior of the key thing you don’t control — the customer.
• Sees the big picture: Strategic thinking involves seeing the big picture and developing realistic action plans to achieve specific goals.
• Problem-solving skills: Strategic thinking skills include problem-solving skills, which are often used to solve problems or address challenges, such as missed financial targets, inefficient workflows, or an emerging competitor.

In summary, strategic thinking is a rational thought process that focuses on analyzing different factors or variables to achieve a goal or set of goals. It involves generating and applying unique business insights and opportunities to create a competitive advantage for a firm or organization. Strategic thinking skills are highly sought-after management competencies that enable individuals to use critical thinking to solve complex problems and plan for the future.