Strategic Thinking vs. Strategic Planning in Business

Lesson Transcript
Instructor: Claude Bourbonniere

Claude has worked as a Company Manager for Cirque du Soleil for the past 20 years and completed an MBA in Global Management at the University of Phoenix in 2014

Strategic thinking and strategic planning can both be used in business to create and implement a plan. Learn the difference between these two business concepts, how to use them effectively and why they are important. Updated: 11/24/2021

Strategic Processes

Paul, the CEO of a widget-producing company, wants his executives to improve the strategic process of his company and to understand the difference between strategic thinking and strategic planning. In the lesson, we'll look at how Paul did just this. We'll start with the definitions of the two kinds of strategic processes.

An error occurred trying to load this video.

Try refreshing the page, or contact customer support.

Coming up next: What Is the Strategic Planning Process? - Model, Steps & Examples

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
 Replay
Your next lesson will play in 10 seconds
  • 0:03 Strategic Processes
  • 0:24 Strategic Thinking
  • 1:19 Strategic Planning
  • 1:41 Jeanne Liedtka
  • 4:04 Henry Mintzberg
  • 4:55 Lesson Summary
Save Save Save

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Log in or Sign up

Timeline
Autoplay
Autoplay
Speed Speed

Strategic Thinking

Strategic thinking is a planning process that applies innovation, strategic planning, and operational planning to develop business strategies that have a greater chance for success.

More and more, organizations are learning that past experiences are not always the best basis for developing future strategies. Executives need to thoughtfully consider how to create value for customers. That's where strategic thinking comes in. Strategic thinking is the 'what' and 'why' of the planning process. It answers the question, 'What should we be doing and why?'

Strategic thinking requires innovation and creativity and includes a research phase to examine the voice of the customer, the employee, and industry practices. It's a process of examining everything we do in our various roles, understanding the needs of our customers, and ensuring that all of this is linked to clearly defined strategic imperatives.

Strategic Planning

The exercise of strategic planning, while important, tends to answer the 'how' and 'when' of business planning and rarely captures the essence of what it means to think strategically.

Strategic planning is a systematic process of envisioning a desired future, and it translates this vision into broadly defined goals or objectives and a sequence of steps of how to achieve them.

Jeanne Liedtka

Jeanne M. Liedtka is a faculty member at the University of Virginia's Darden Graduate School of Business and former chief learning officer at United Technologies Corporation. She is particularly known for her work in corporate strategy. She has written and consulted on topics surrounding strategic thinking for over 30 years. According to Ledtka, strategic thinking differs from strategic planning along the following dimensions of strategic management:

To unlock this lesson you must be a Study.com Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back
What teachers are saying about Study.com
Try it now
Create an account to start this course today
Used by over 30 million students worldwide
Create an account