Management, strategy, and foresight compared

This post distinguishes management, strategic planning and foresight. It suggests how the “long view” and global perspective of futurists, which is at the core of foresight, also benefits management and strategic planning.

Here are some definitions:

  • Management—design and orchestration of processes to maintain an organization’s operations and achieve its defined objectives. Near-term, generally focused on the present, and centered on the organization and its current operating environment.
  • Strategic planning—identifying and prioritizing goals and objectives for an organization’s near-term future, generally 3 to 5 years. Focused on the existing organization, it considers, or should consider, external environment impacts and change.
  • Foresight—long-range exploration of change, generally 10 years plus, and interpretation of possible futures for their organizational implications. It takes a broad, often global/contextual view of external forces shaping the future, and looks deep into the future to identify unmet challenges and emerging opportunities.

Managers are understandably focused on the present and on day-to-day management. The best are fine-tuning their processes and systems as they run. Others are playing catch up, implementing changes to put things right and catch up to existing demands. In either case, the work they are doing is management

Managers have an instinctive action mindset. Their framing is on the organization and its sector and marketplace. That close-focus holds thinking in organizations in the present and the near at hand. It constrains exploration of more impactful change. The risk is an organization with blinders on, one that engages in a steady pattern of fire, ready, aim

Strategic planning arises from this close-focus and near-term context. It works inside the habits of business managers, and usually falls short of engaging long-term thinking about new challenges and possibilities.

The solution is to separate execution from exploration. True leadership means pressing for a long view to discover more potential change and opportunity even as they maintain operations. With that stretch thinking comes a promise to “bring it home to today” which reassures stakeholders that the exploration is relevant and valuable.

 

Creative apartheid, and other organizational sins

Avoiding silos in the organizationThe blog Innovation Weblog cited Gary Hamel’s book The Future of Management a few months ago, and I’ve meant to share its key points on impediments to innovation. Here they are along with my interpretations:

Creative apartheid–The long-held notion that creativity is a gift few have and that creative things should, and perhaps can only come from the “creative types” in the organization, or, perhaps, only from outside consultants. We need everyone’s creativity to be nurtured and set free.

The drag of old mental models–Organizations get stuck in modes of thought and conventional views that endure and hold fresh thinking at bay. They need to be able to change the way they think.

No slack–Cost cutting and lean practices leave little room for the free thinking and experimentation that might lead to innovative practices, new products, and new business models. Innovation needs slack.

To these, I’d like to add what I’ve observed over and over again in groups I’ve worked with. Too many companies have a mental template and an obsession, that has them looking at market share and bottom line growth as not just critical measures of success, but, sometimes, the only measures. They demand that a new idea deliver $50 million to the bottom line in year 2. They insist that changes not cost more, even if there might be a long-term payoff.

Better foresight and habitual longer-range thinking can make a big difference across this range of chronic organizational disabilities. If only by modeling longer-term good outcomes, the tools and habits of foresight can help organizations get beyond this barriers to innovation.

Image: my-aim-is-true via Flickr, cc license

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