Strategic thinking: Strategy as a shared framework in the mind of managers.

Even though most academics,business people and consultants recognize that the purpose of strategy formulation can no longer be to generate strategic plans,critics of formal strategic planning offer little guidance on how to overcome its limitations and rarely address CEOs 'concerns about turning strategic vision into an operational reality. This paper proposes a managerial approach to strategic thinking and strategy formulation which takes both process and content issues into account.Strategic thinking is understood as a deliberate and creative process as well as the resulting state of mind.Strategy is presented as shared framework which guides managers 'daily actions.The approach is developed in a way that attempts to respond to CEOs 'concerns regarding the need to manage by strategy in today 's rapidly changing environment.Key building blocks of the new approach to strategy formulation are presented.Some initial empirical tests provide support for this approach.The framework outlined here seeks to contribute to top management 's efforts to build a shared understanding of strategic issues and encourage actions at the front line which are consistent with the strategy pursued by the firm.