Book SummaryThe Six Disciplines of Strategic Thinking, by Michael D. Watkins

1-Page Summary1-Page Book Summary of The Six Disciplines of Strategic Thinking

The Mental Disciplines That Underlie Strategic Thought

In his book, "The Six Disciplines of Strategic Thinking," Michael Watkins emphasizes that strategic thinking, a critical skillset for leaders, requires mastery of six mental disciplines: pattern recognition, systems analysis, mental agility, structured problem-solving, visioning, and political savvy. The initial trio of disciplines, covered in this section, focus on assisting you in identifying and prioritizing new risks and prospects.

Cultivating Pattern Recognition Abilities

Recognizing patterns is the basis of strategic thinking. It refers to how our minds can identify trends, regularities, and patterns in our environment. Watkins stresses that, in the business world, it enables leaders to observe complex events, discern what matters and what doesn't, and pinpoint possible risks and openings.

Mechanisms Enabling Human Trend Detection in Complicated Environments

Watkins explains that recognizing patterns starts with matching what's occurring in business to the memory patterns stored in the brain's "System 1" section. This mechanism operates automatically and often unconsciously. It relies on previously developed "mental models" that connect causes and effects in business domains of importance to you, such as customer habits, financial patterns, and the state of the market. These models help you manage the cognitive overload that can accompany increasingly unpredictable, dynamic, unclear, and intricate work environments.

Watkins highlights how essential it is to recognize whether you're using the more deliberate, analytical, and intentional "System 2" part of your brain. He describes this system as directing focus to demanding mental tasks that require effort, such as complicated calculations. The more deliberate, analytical, and intentional portion of your mind is activated when you focus effortfully on a challenging cognitive task or when your more automatic mental functions spot a pattern that requires a more considered response. This step is crucial because System 1 is often biased and inaccurate.

Practical Tips

• Set up personalized reminders to question your habits at random intervals. Use a smartphone or a smart home device to send you unexpected prompts asking, "Is what you're doing right now a conscious choice?" This can help you catch yourself in the midst of an automatic behavior, like mindlessly scrolling through social media, and consider if it aligns with your intentions.
• Implement a "customer feedback loop" for your personal projects or side hustles. If you're selling products online, regularly solicit feedback from buyers and use it to adjust your offerings. This mirrors the business practice of refining products based on customer habits and preferences. For example, if you knit and sell scarves, ask buyers to rate the warmth, comfort, and style, and use their feedback to improve your next batch of products.
• Set up a weekly "mental model reflection" session in your calendar. Dedicate 15 minutes each week to reflect on which mental models you've used recently and how effective they were. This could involve writing a short journal entry or even voice recording your thoughts. For instance, if you found yourself using the "sunk cost fallacy" to justify continuing a project that's no longer beneficial, recognizing this can help you avoid similar traps in the future.
• Set aside "thinking time" in your daily schedule. Dedicate a specific time each day or week where you deliberately engage in analytical thinking. During this period, tackle complex problems or decisions that require deep thought. This habit ensures you're allocating time to engage your System 2 thinking regularly.
• Start a 'mental workout' routine with progressively challenging brain exercises. Begin with simpler tasks like Sudoku or crosswords and gradually move to more complex ones like chess problems or coding challenges. This incremental approach helps condition your mind to become more adept at focusing on demanding mental tasks over time.
• Start a 'pattern journal' to document irregularities or patterns you notice in your daily life. Whether it's a recurring theme in conversations or an unusual sequence of events, writing them down can trigger your intentional mind to analyze and respond to these observations. Over time, you'll develop a keener sense for when your analytical mind needs to kick in.
• Use a decision journal to track the accuracy of your gut reactions. Whenever you make a decision based on intuition, write it down along with the expected outcome. Review the journal after some time to see how often your System 1 led you astray and learn from the patterns you observe.

Immersing in Fields to Build Robust Mental Models

Watkins argues that "complete immersion" in a business domain is the most effective means to construct strong mental models that support pattern recognition. Just as with language acquisition, people need to spend significant time in an environment to recognize the key relationships between causes and effects. The author stresses that you should choose your areas of immersion strategically. You cannot expect to excel in recognizing patterns in every function, every industry, and every stakeholder domain. Therefore, concentrate on selecting a handful of areas for immersion—ideally ones that are connected to the problems and possibilities you regularly confront (or aspire to confront) as a leader.

Other Perspectives

• Relying solely on pattern recognition within a domain may cause leaders to miss out on random events or outliers that could have significant impacts on their business.
• In some cases, external perspectives from individuals not immersed in the environment can provide fresh insights and challenge entrenched ways of thinking.
• This approach may inadvertently reinforce existing biases, as individuals might choose to immerse themselves in areas they...

The Six Disciplines of Strategic Thinking Summary How Strategy Experts Organize Their Companies for Action

Once you've identified and prioritized the most significant risks and prospects, it is time to take action. The subsequent three chapters in Watkins's book examine the disciplines that underpin effective mobilization.

Structuring Problem-Solving Processes for High-Stakes Challenges

To equip your organization to tackle problems, you must initially know how to solve them. Watkins emphasizes that today's most challenging organizational problems are "wicked" - meaning that they are often novel, complex, uncertain, volatile and ambiguous (CUVA). This requires using what the author calls systematic problem resolution—a process for methodically defining and breaking down issues into components to analyze and then solve individually and collectively.

Engaging Key Stakeholders Effectively Using the ASCI (Approve, Support, Consult, Inform) Method

The author believes that organized problem-solving begins with identifying and engaging with critical stakeholders. Watkins argues that the "ASCI" (Approve, Support, Consult, Inform) framework is a powerful tool for making sure the right people get involved in the right ways at the right time. Begin by pinpointing the main...

The Six Disciplines of Strategic Thinking Summary The Importance of Political Savvy for Strategic Thinkers

Political acumen is the capability to manage and influence an organization's political environment. This represents the final strategic thinking discipline. To succeed in top-tier industries, you must become more politically astute. Why? As you advance within companies, the politics increase.

Recognizing and Accepting the Political Nature of Organizations

Numerous leaders find it difficult to view their organizations politically because of the negative connotations associated with political maneuvering. However, Watkins argues that if you want to lead, you must learn to see past these connotations and welcome the political dimension. He argues that you will not be able to energize your organization to tackle tough problems and transform it to adapt to evolving risks and possibilities unless you understand its underlying political dynamics and are skilled at forming and maintaining partnerships with key players.

Visualizing Organizations as Ambitious Actors Pursuing Agendas

To think politically about your company and the environment around it, Watkins advises that you (1) visualize it as a collection of "actors" (groups, individuals) pursuing their agendas, and (2)...