Analyzing opportunities and problems from a broad perspective and understanding your actions' potential impact on others

Correct choice. Because you work in a particular part of your organization, you have only so much information at hand to address difficult problems and make important decisions. Strategic thinking helps you overcome these limitations, enabling you to view workplace challenges from a broad perspective and anticipate your decisions' possible impact on other individuals and parts of your organization. As a result, you make smarter choices and select the most appropriate courses of action to generate valuable results for your organization.

Developing plans for persuading your supervisor, peer managers, employees, or customers to adopt your proposed course of action

Not the best choice. Strategic thinking isn't about persuasion. Rather, it's a way to overcome inherent limitations in the workplace. Because you work in a particular part of your organization, you have only so much information at hand to address difficult problems and make important decisions. Strategic thinking helps you overcome these limitations, enabling you to view workplace challenges from a broad perspective and anticipate your decisions' possible impact on other individuals and parts of your organization. As a result, you make smarter choices and select the most appropriate courses of action to generate valuable results for your organization.

Identifying the root causes of problems without allowing emotions to dominate or confuse your thinking process

Not the best choice. Strategic thinking isn't only about root-cause analysis or cool-headed rationalization. Rather, it's a way to overcome inherent limitations in the workplace. Because you work in a particular part of your organization, you have only so much information at hand to address difficult problems and make important decisions. Strategic thinking enables you to view workplace challenges from a broad perspective and anticipate your decisions' possible impact on other individuals and parts of your organization. As a result, you make smarter choices and select the most appropriate courses of action to generate valuable results for your organization.

Keeping an eye on competitors' actions and plans

Not the best choice. Watching competitors is a behavior that characterizes strategic thinking. Defining personal traits of strategic thinkers include a positive outlook that enables them to view challenges as opportunities, curiosity about their company and industry, flexibility in the face of new information, a focus on the future, and a breadth of knowledge and experience.

Viewing challenges as opportunities

Correct choice. In addition to a positive outlook that enables them to view challenges as opportunities, strategic thinkers demonstrate other characteristic personal traits—such as curiosity about their company and industry, flexibility in the face of new information, a focus on the future, and a breadth of knowledge and experience.

Evaluating the pros and cons of alternative courses of action

Not the best choice. Evaluating alternative actions' pros and cons is a cognitive capacity that characterizes strategic thinking. Defining personal traits of strategic thinkers include a positive outlook that enables them to view challenges as opportunities, curiosity about their company and industry, flexibility in the face of new information, a focus on the future, and a breadth of knowledge and experience.

Seeing the big picture and thinking creatively

Not the best choice. Seeing the big picture is only part of phase one of the strategic thinking process, while thinking creatively is part of phase two. The correct answer is "Setting the stage and applying your skills." In phase one, setting the stage, you seek to understand the broader business environment in which you operate and to clarify your strategic objectives. In phase two, you apply your strategic thinking skills, which include identifying relationships, patterns, and trends; thinking creatively; analyzing information; prioritizing your actions; and making trade-offs.

Prioritizing your actions and analyzing information

Not the best choice. Prioritizing your actions and analyzing information are skills you apply during phase two of the strategic thinking process. The correct answer is: "Setting the stage and applying your skills." In phase one, setting the stage, you seek to understand the broader business environment in which you operate and to clarify your strategic objectives. In phase two, you apply your strategic thinking skills, which include identifying relationships, patterns, and trends; thinking creatively; analyzing information; prioritizing your actions; and making trade-offs.

Setting the stage and applying your skills

Correct choice. In phase one of the strategic thinking process, setting the stage, you seek to understand the broader business environment in which you operate and to clarify your strategic objectives. In phase two, you apply your strategic thinking skills, which include identifying relationships, patterns, and trends; thinking creatively; analyzing information; prioritizing your actions; and making trade-offs.

They analyze the impact of their company's products and services on high-level, emerging developments such as the accelerating globalization of business and organizations' increasing emphasis on improving customer service.

Not the best choice. Improving your view of the larger "business ecosystem" in which you operate isn't only about understanding how your company affects worldwide business developments. It's about constantly monitoring what's going on both inside and outside your organization—and using your awareness to make smart on-the-job choices that ensure your company's best possible future. Familiarizing yourself with company- and unit-level strategy; understanding changes in customers, competitors, and your industry; and anticipating how your choices may impact people and processes in other parts of your organization all help you gain the broad perspective you need to make savvy business decisions.

They understand their company's and unit's strategies; consider what's going on with customers, competitors, and their industry; and take into account how their actions might affect others in their organization.

Correct choice. Improving your view of the larger "business ecosystem" means constantly monitoring what's going on both inside and outside your organization—and using your awareness to make smart on-the-job choices that ensure your company's best possible future. Familiarizing yourself with company- and unit-level strategy; understanding changes in customers, competitors, and your industry; and anticipating how your choices may impact people and processes in other parts of your organization all help you gain the broad perspective you need to make savvy business decisions.

They stay on top of important trends in the industry in which their company competes, such as changes in governmental policy, technological advances, availability and quality of natural resources, and demographic shifts.

Not the best choice. Improving your view of the larger "business ecosystem" in which you operate isn't only about focusing on industry trends. It's about constantly monitoring what's going on both inside and outside your organization—and using your awareness to make smart on-the-job choices that ensure your company's best possible future. Familiarizing yourself with company- and unit-level strategy; understanding changes in customers, competitors, and your industry; and anticipating how your choices may impact people and processes in other parts of your organization all help you gain the broad perspective you need to make savvy business decisions.

Gain insights from managers who are working in other functions about how the company has been performing and what may be contributing to performance problems

Not the best choice. Asking other managers about company performance would not be the most effective first response. Instead, you would want to ask your boss clarifying questions about the mandate. When your boss defines strategic objectives for you, it's important to ensure that you understand those objectives in the most specific terms possible. Asking clarifying questions can help you avoid misunderstandings about goals, specify areas where you should invest your effort and time, and anticipate possible impacts of any changes on other parts of the organization. In addition to asking their boss clarifying questions, strategic thinkers also offer ideas for additional objectives that may help their group support company-level strategies.

Move immediately to reduce errors, improve accuracy, and incorporate cutting-edge innovation into every process for which your group is responsible

Not the best choice. Acting immediately on your assumptions about what your boss's mandate means would not be the most effective first response. Instead, you would want to ask your boss clarifying questions about the mandate. When your boss defines strategic objectives for you, it's important to ensure that you understand those objectives in the most specific terms possible. Asking clarifying questions can help you avoid misunderstandings about goals, specify areas where you should invest your effort and time, and anticipate possible impacts of any changes on other parts of the organization. In addition to asking their boss clarifying questions, strategic thinkers also offer ideas for additional objectives that may help their group support company-level strategies.

Ask your boss clarifying questions, such as "What do you mean by 'enhance quality'?" and "Where should we focus our quality-enhancement efforts?"

Correct choice. When your boss defines strategic objectives for you, it's important to ensure that you understand those objectives in the most specific terms possible. Asking clarifying questions can help you avoid misunderstandings about goals, specify areas where you should invest your effort and time, and anticipate possible impacts of any changes on other parts of the organization. In addition to asking their boss clarifying questions, strategic thinkers also offer ideas for additional objectives that may help their group support company-level strategies.

At a conference, you hear a presenter describe a new process-improvement approach being used in a different industry. You consider adapting that process in your own company.

Correct choice. Spotting opportunities to leverage best practices from industries very different from yours is an example of the ability to identify relationships, patterns, and trends—particularly in seemingly unrelated arenas. Application of this strategic thinking skill also enables you to understand relationships across different parts of your organization, interpret changes across time in important performance metrics (such as employee turnover or revenues), and organize seemingly disparate information into more manageable categories.

While attempting to solve a recurring problem in your group, you invite your direct reports to challenge their assumptions about how work should be done in your organization.

Not the best choice. Challenging assumptions is an example of creative thinking—a strategic thinking skill different from identifying relationships, patterns, and trends. Spotting opportunities to leverage best practices from an industry very different from yours is the correct example of the ability to identify relationships, patterns, and trends. Application of this strategic thinking skill also enables you to understand relationships across different parts of your organization, interpret changes across time in important performance metrics (such as employee turnover or revenues), and organize seemingly disparate information into more manageable categories.

To carry out a strategic mandate to improve order fulfillment for customers, you list all the critical data you need to know in order to achieve this important objective.

Not the best choice. Listing needed data is an example of analyzing information—a strategic thinking skill different from identifying relationships, patterns, and trends. Spotting opportunities to leverage best practices from an industry very different from yours is the correct example of the ability to identify relationships, patterns, and trends. Application of this strategic thinking skill also enables you to understand relationships across different parts of your organization, interpret changes across time in important performance metrics (such as employee turnover or revenues), and organize seemingly disparate information into more manageable categories.

An effective plan for gathering information you need to solve a pressing business problem

Not the best choice. An information-gathering plan is a desired outcome of another strategic thinking skill: analyzing information. Visualizing new possibilities (even if they seem initially preposterous), formulating new approaches to getting things done, and opening yourself to new information that doesn't support your existing assumptions are all hallmarks of creative thinking. By enabling you to generate more alternatives rather than limiting your choices to just the first one or two that come to mind, creative thinking boosts your chances of ultimately selecting the best possible course of action.

Awareness of underlying common themes in a wide range of data you're evaluating

Not the best choice. Awareness of common themes in disparate data is a desired outcome of another strategic thinking skill: identifying relationships, patterns, and trends. Visualizing new possibilities (even if they seem initially preposterous), formulating new approaches to getting things done, and opening yourself to new information that doesn't support your existing assumptions are all hallmarks of creative thinking. By enabling you to generate more alternatives rather than limiting your choices to just the first one or two that come to mind, creative thinking boosts your chances of ultimately selecting the best possible course of action.

An open attitude toward seemingly bizarre ideas that your company hasn't considered before

Correct choice. Visualizing new possibilities (even if they seem initially preposterous), formulating new approaches to getting things done, and opening yourself to new information that doesn't support your existing assumptions are all hallmarks of creative thinking. By enabling you to generate more alternatives rather than limiting your choices to just the first one or two that come to mind, creative thinking boosts your chances of ultimately selecting the best possible course of action.

Borrow from previously developed solutions that proved useful for addressing problems such as one you're dealing with currently

Correct choice. Building on existing knowledge is one valuable way to apply your skill at analyzing information. By adapting proven solutions, you save time and help spread wisdom gained in other parts of your organization. Other ways to apply this skill include determining the critical information you need to address the issue at hand, as well as developing and implementing an effective information-gathering plan.

Gather all information directly and indirectly related to a current challenge, so you can compile the most comprehensive data possible

Not the best choice. Gathering all possible information is too broad an approach and will only overwhelm you with data. One key to analyzing information is efficiency: borrowing from proven solutions to save time, identifying only the most critical information you need to solve your issue, and developing and implementing an effective information-gathering plan.

Concentrate your information analysis on what's going on in your immediate group, since you're most familiar with that source of data

Not the best choice. Focusing your information analysis only on your immediate group is too narrow an approach. A more analytical approach is to borrow from proven solutions. Additional examples of how to apply this skill include identifying only the most critical information you need to solve your issue and developing and implementing an effective information-gathering plan.

Tackle the easiest items first so as to get rid of distractions and then focus more sharply on the most important activities and tasks

Not the best choice. Tackling easy tasks first is not the most strategic use of your time and energy. Instead, you need to identify and prioritize the critical tasks in your long list of "to do's"—those activities that will generate the most valuable results for your group and company. More peripheral items can be postponed, delegated, or even left undone if necessary, so you can focus your time and energy on strategically relevant activities.

Identify and schedule the most critical items on the list first, while delegating or leaving undone any peripheral items

Correct choice. By prioritizing your actions in this way, you keep your eye on the big picture—a key element of strategic thinking. All managers are busy and have many responsibilities. Part of being a strategic thinker is knowing how to identify and prioritize the critical tasks in your long list of "to do's"—those activities that will generate the most valuable results for your group and company. More peripheral items can be postponed, delegated, or even left undone if necessary, so you can focus your time and energy on strategically relevant activities.

Address all urgent responsibilities immediately, since these constitute the most important items on the list

Not the best choice. Tackling urgent tasks first is not the most strategic use of your time and energy, because some tasks are urgent but not important. Instead, you need to identify and prioritize the critical tasks in your long list of "to do's"—those activities that will generate the most valuable results for your group and company. More peripheral items can be postponed, delegated, or even left undone if necessary, so you can focus your time and energy on strategically relevant activities.

Weighing the short- and long-term consequences of a proposed course of action

Correct choice. Some trade-offs involve sacrificing short-term gains in order to achieve important long-term gains, or vice versa. Thus, weighing the possible short- and long-term consequences of a proposed course of action, and considering how each of those consequences relates to your company's strategic goals, can help you make smart trade-offs. Other approaches to making wise trade-offs include assessing the pros and cons of alternative courses of action, considering whether actions that benefit your group will also benefit the rest of your organization, and specifying what you won't do to resolve a problem or achieve a goal.

Identifying the full range of possible advantages offered by a decision you advocate

Not the best choice. To make smart trade-offs, you need to identify both the advantages and disadvantages of a course of action. Thus, the correct answer to this question is "weighing the short- and long-term consequences of a proposed course of action." Some trade-offs involve sacrificing short-term gains in order to achieve important long-term gains, or vice versa. Therefore, weighing the possible short- and long-term consequences of a proposed course of action, and considering how each of those consequences relates to your company's strategic goals, can help you make smart trade-offs.

Optimizing your group's performance to improve company performance overall

Not the best choice. Optimizing your group's performance doesn't necessarily improve company performance overall. For example, if your group greatly increases sales within a short time period, the production staff may be unable to keep up—resulting in late deliveries of orders and dissatisfied customers. To make smart trade-offs, you need to consider the impact of any changes in your group's activities on the rest of your organization. Thus, the correct answer to this question is "weighing the short- and long-term consequences of a proposed course of action." Some trade-offs involve sacrificing short-term gains in order to achieve important long-term gains, or vice versa. Therefore, weighing the possible short- and long-term consequences of a proposed course of action, and considering how each of those consequences relates to your company's strategic goals, can help you make smart trade-offs.