Speaker: Michael Watkins, Professor of Leadership and Organizational Change at IMD Business School, Switzerland
Book Referenced: The Six Disciplines of Strategic Thinking
Michael Watkins begins by addressing a frequent question: Are great strategic thinkers born or made? His response is a nuanced “yes,” emphasizing that, like other valuable human capabilities, strategic thinking arises from a mix of innate ability (nature) and training and experience (nurture).
He draws a parallel to world-class marathoners—physiological endowment is important, but dedicated training is essential. Strategic thinking works the same way: while some are naturally better at it, anyone can improve significantly with focused development. The key is to shift attention from worrying about natural talent to investing in improvement, which his research confirms is highly effective.
Importance of Strategic Thinking in Leadership
Watkins underscores that strategic thinking is critical for leadership, especially in times of rapid change and complexity. Leaders must:
- Detect emerging challenges and opportunities
- Set the right priorities
- Mobilize teams to adapt and execute effectively
In studying how leaders succeed in this, he identified six mental disciplines that support strategic thinking.
The Six Disciplines of Strategic Thinking
- Pattern Recognition
- The ability to filter the signal from the noise in complex environments.
- It’s not just about noticing trends, but understanding why they’re happening and how they connect.
- Like chess grandmasters seeing patterns, opportunities, and vulnerabilities, strategic thinkers perceive deeper dynamics in seemingly chaotic information.
- Systems Thinking (Systems Analysis)
- Strategic thinkers need to understand the interconnected elements of a system.
- No system model is perfect (e.g., climate models), but a useful simplification helps predict and influence outcomes.
- Effective models highlight the most impactful variables and relationships in the system.
- Mental Agility
- Described as “cloud-to-ground thinking”—the ability to shift fluidly between a high-level (strategic) view and on-the-ground (tactical) details.
- Great leaders navigate between perspectives intentionally and effectively, seeing both the big picture and the executional nuances.
- Structured Problem-Solving
- A disciplined method to frame the right problem, explore options, and develop robust solutions.
- It helps teams collaborate and reach consensus, ensuring alignment—even if enthusiasm varies.
- Essential for tackling complex, high-stakes issues with multiple stakeholders.
- Visioning
- Crafting a compelling future state that motivates and guides the organization.
- Vision must balance ambition and achievability:
- Too ambitious = discouraging
- Too easy = uninspiring
- The goal is to ignite collective excitement while remaining grounded.
- Political Savvy
- Recognizing that politics are part of all organizations.
- One key tactic: sequencing strategy—choosing the right order and timing to approach and influence key stakeholders.
- Example: gaining the support of early allies (e.g., Christian and Stephanie) to influence others (e.g., Robert), while avoiding alienating potential opponents (e.g., Trudy).
- It’s about guiding people incrementally toward a goal they might resist if approached directly.
Final Thoughts: Strategic Thinking as a Leadership Differentiator
Watkins concludes by emphasizing that strategic thinking is a major factor in leadership advancement. Decision-makers are increasingly prioritizing it when selecting future leaders.
Takeaway: Investing in your strategic thinking capability is not just an intellectual exercise—it’s a powerful career accelerator and a path to greater leadership impact.
Photo by Mark Fletcher-Brown on Unsplash
