Professional Documents
Culture Documents
Strategic Thinking:
Developing Critical Skills for the
Pharmaceutical Leader
The author of Why Decisions Fail, Ohio State business professor Paul Nutt, reveals in his
research that “managers make the same mistakes over and over again as they formulate
decisions.” Nutt, a consultant to the National Science Foundation and the National Center
for Health Services Research, cites three primary reasons why business decisions fail:
• Managers rush to judgment, jumping on the first solution they consider,
• They misuse their resources, spending their time and money during decision making on the
wrong things, and
• They repeatedly use failure-prone tactics to make decisions.
The implications for the pharmaceutical industry are clear: Leaders need to avoid the
pitfalls of decision making, while still retaining speed and flexibility. Detailed in this
article is a powerful set of Strategic Thinking skills that provide leaders with the knowledge
and confidence to do just that.
We’ll examine:
• What strategic thinking is and isn’t
• Why strategic thinking is vital to making sound business decisions
• How strategic thinking skills are especially critical in the pharmaceutical industry
• How to become a more strategic thinker with nine practical skills
The simplest definition of strategy is what your company needs to do to achieve its
vision and fulfill its mission. Strategic planning, then, is a finite, linear, and multi-
step activity that results in specific plans, tactics, and a timeline for long-term strategy
execution.
Strategic thinking, on the other hand, is the process of considering complex and
ambiguous data in order to reach sound, shared decisions. Inasmuch as strategic
1
Nutt, Paul C. Why Decisions Fail: Avoiding the Blunders and Traps that Lead to Debacles. Berrett-Koehler, 2002.
A lack of Strategic Thinking has an enormous negative impact for the leader and the
organization — including:
• Poor choices—bad decisions that could have been avoided. Great losses of money,
energy, morale, market share.
• Churn—individuals, teams and organizations don’t make choices or make choices that
don’t stick.
• Slow reaction times—individuals and groups don’t make a timely choice, or don’t figure
out that they’ve made a bad choice for a significant period of time.
• Longer decision cycle times, which slows implementation.
In a landmark report titled, Developing Business Leaders for 2010, the Conference Board
cited ten core skills that leaders need to master for success. Cognitive ability was number
one, with strategic thinking a close second — listed ahead of analytical ability, decision
making amidst ambiguity and uncertainty, and a
host of other skills including influence, persuasion,
and delegation. The report found “an environment Even the most brilliant
of extreme cognitive complexity in many industries, strategy cannot
requiring extraordinary strategic thinking skills and the
ability to make high-quality decisions quickly in the succeed without
2
face of competitive pressure and uncertainty.” That
couldn’t be more true in the pharmaceutical industry. superb execution.
And strategic thinking
STRATEGIC THINKING COMPONENTS skills, applied to
Strategic thinking involves nine skills that build
competence and collaborative capability to engage
ever-changing, down-
others in strategic conversations, along with the in-the-trenches
personal awareness to make sound judgments and
decisions. The nine skills are: challenges, smooth
the way for rapid,
Scanning: Accessing a broad range of critical
information that relates to the business decision or issue agile execution.
at hand. As Nutt observed, “A misleading context can
create a frame that illuminates an environment with
cues that will mislead subsequent activity. The search for insightful context is the most
important step in avoiding bad decisions.” 3
Hypothesis Creation: Rapidly forming beliefs and hypotheses from concrete but sparse
data and drawing conclusions.
2
The Conference Board, Inc., Developing Business Leaders for 2010, New York, NY, 2002.
3
Nutt, Paul C. Making Tough Decisions. Jossey-Bass, 1989.
STRATEGIC THINKING
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CONCLUSION
There is enormous pressure in business today to be strategic, and yet strategy itself has
a bad reputation. Here’s why: People spend a lot of time creating a strategy, fine-tuning
a plan, and wordsmithing the way forward. The best intentions often break down in
execution, and one of the biggest culprits is a company’s lack of focus. Strategic thinking
offers a clear set of skills for leaders to use to ensure focus and execution.
Since joining Interaction Associates in 1986, Ms. Tahar has facilitated strategic planning
sessions for many Fortune 500 companies, and has developed and delivered leadership
development initiatives to thousands of individuals. Her primary client groups are
executives, middle managers, intact work teams, leadership councils, and planning
committees. She is a frequent speaker at such conferences as The Conference Board’s
Leadership Development Conference, Employers of Excellence, and the CLO Symposium.
Prior to joining Interaction Associates, Ms. Tahar worked for Intel Corporation as a
Production Supervisor and Manager of Management Development.