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Strategic Thinking Versus Mental Model

Strategic Thinking Versus Mental Model

Strategic Thinking is not a single Mental Model, but rather a way of using multiple Mental Models together to make better long-term decisions. Mental Model is a framework or lens for understanding how the world works. Example: “First Principles Thinking” (breaking problems down to fundamentals). Strategic Thinking is the ability to apply various Mental Models and insights to set direction, anticipate change, and align actions toward a goal. Example: Using opportunity cost, systems thinking, and second-order thinking together to choose a long-term business strategy. Strategic Thinkers use Mental Models as tools – much like a carpenter uses hammers and saws…
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Connection of Strategy to Strategic Thinking

Connection of Strategy to Strategic Thinking

Strategy leads to Action Plan.  You convert those insights into specific choices: where to play, how to win, and what to prioritize. Strategic Execution leads to Results You align people, processes, and resources around that chosen direction. Strategic Thinking = Brainstorming the route on the map. Strategy = Choosing the best route to reach your destination... based on insights from Strategic Thinking. Tactics = Driving... step-by-step along that route... which is aligned with the Strategy. LPM is on Amazon
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Top Habits to Develop Strategic Thinking

Top Habits to Develop Strategic Thinking

10) Reflect and Adapt Why: Strategy is a living process, not a one-time overarching “plan”. In the heart of ABC, Olivia, an experienced program lead, made it a habit to reflect and adapt after every major initiative. Instead of rushing to the next task, she gathered her team for open retrospectives, candidly discussing what worked, what failed, and—most importantly—why. This routine not only surfaced hidden challenges but also fueled a culture of continuous learning. Over time, Olivia’s dedication to reflection and adaptation enabled her team to respond swiftly to market shifts, improve collaboration, and stay one step ahead of the…
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Top Habits to Develop Strategic Thinking

Top Habits to Develop Strategic Thinking

9) Balance Short-Term and Long-Term Why: Strategy fails when you only chase quick results. At ABC, Alex, a senior strategist, faced pressure to deliver quick wins for quarterly targets while also planning transformative projects for the company’s future. Instead of favoring one over the other, Alex developed the habit of balancing short-term results with long-term vision. During a critical project review, he championed launching a fast, customer-requested feature to boost immediate satisfaction, but also ensured that the team invested in scalable infrastructure for future innovation. By consciously weighing immediate impact against enduring outcomes, Alex helped ABC achieve consistent growth while…
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Top Habits to Develop Strategic Thinking

Top Habits to Develop Strategic Thinking

8) Use Mental Models Why: Mental Models sharpen how you interpret information. Across the hall, Luis, a senior strategist, made it his habit to apply mental models to every major decision. Rather than relying solely on past experience, he drew from frameworks like inversion, second-order thinking, and the Pareto Principle to dissect complex challenges. For example, when faced with a market expansion dilemma, Luis used inversion by first asking how the plan could fail, then systematically addressing those risks. His disciplined use of diverse models allowed him to uncover blind spots, anticipate outcomes, and communicate decisions clearly—earning a reputation for…
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Top Habits to Develop Strategic Thinking

Top Habits to Develop Strategic Thinking

7) Encourage Diverse Perspectives Why: Strategic blind spots shrink when different viewpoints are included. At ABC, a breakthrough came when portfolio manager Sofia made it her habit to encourage diverse perspectives during strategic discussions. Rather than relying solely on the views of senior leaders, she invited team members from different departments, backgrounds, and levels of experience to share their insights on upcoming initiatives. This practice revealed hidden challenges and uncovered innovative solutions that would have otherwise gone unnoticed. By fostering an environment where all voices were valued, Sofia helped the company make more balanced decisions, leading to creative strategies and…
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Top Habits to Develop Strategic Thinking

Top Habits to Develop Strategic Thinking

6) Focus on what Truly Moves the Needle Why: You cannot do everything – focus is power In the heart of ABC’s busy operations, Alexis, a rising leader, developed the habit of focusing only on what truly moved the needle. While others were drawn into endless meetings and side projects, Alexis made it a point to identify the few actions that directly impacted customer value and the company’s strategic goals. By consistently prioritizing these high-impact initiatives—and diplomatically saying no to distractions—Alexis drove significant results, earning both the trust of leadership and the admiration of peers. This focus became the cornerstone…
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Top Habits to Develop Strategic Thinking

Top Habits to Develop Strategic Thinking

5) Anticipate Second-Order Effects Why: Short-term wins can cause long-term losses At ABC, portfolio analyst Jordan developed a reputation for thinking beyond immediate impacts. When the company planned a major software update, most focused on delivering new features quickly. However, Jordan habitually anticipated second-order effects, asking, “How will this change alter user behavior, and what challenges might arise down the road?” By raising these questions, Jordan helped the team see that a quicker interface could boost user engagement but might also increase support requests. His foresight led ABC to preemptively train support staff and refine documentation, ensuring a smooth rollout.…
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Top Habits to Develop Strategic Thinking

Top Habits to Develop Strategic Thinking

4) Think in Systems Why: Every decision affects other parts of the system. Consider Clare, a new portfolio leader at ABC, who made it her mission to "think in systems" every day. Rather than reacting to surface-level setbacks, Clare routinely mapped how changes in one project might impact others, spotting feedback loops and hidden dependencies. This habit helped her anticipate downstream effects—like how a resource reallocation in customer support could slow a product launch—and empowered her to propose solutions that benefited the entire organization. Over time, Clare’s systems thinking approach became second nature, enabling her to steer ABC toward cohesive,…
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Top Habits to Develop Strategic Thinking

Top Habits to Develop Strategic Thinking

3) Connect the dots Why: Strategic Thinkers see patterns others miss. At ABC, strategic thinkers weren’t just defined by their analytical skills—they excelled at “connecting the dots.” Take John, a product lead who saw patterns where others saw isolated problems. When customer feedback surfaced unexpected frustrations, John traced connections between feature delays, cross-team communication gaps, and shifting market demands. By routinely mapping these links, he uncovered root causes and revealed opportunities for collaboration. His habit of synthesizing insights from diverse sources made ABC’s strategies sharper and more adaptive, proving that connecting the dots isn’t just a skill—it’s a powerful habit…
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Top Habits to Develop Strategic Thinking

Top Habits to Develop Strategic Thinking

2) Ask Better Questions -- Part 2 Over time, this simple habit uncovered hidden risks, revealed untapped opportunities, and encouraged her colleagues to challenge groupthink. One pivotal moment came during a quarterly strategy review. While the team debated minor tweaks to their product roadmap, Alexa asked, “If we started from scratch today, what would we do differently for our customers?” This question shifted the conversation, helping the team identify bold new directions and avoid incremental thinking. By consistently modeling the habit of asking better questions, Alexa inspired a culture where curiosity and critical inquiry were valued as much as expertise,…
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Top Habits to Develop Strategic Thinking

Top Habits to Develop Strategic Thinking

2) Ask Better Questions Why: Strategy starts with curiosity, not certainty. Asking better questions became the hallmark of ABC's newest strategic thinker, Alexa. Early in her career, Alexa noticed that meetings often revolved around finding answers quickly, not questioning the premises behind decisions. Determined to change this pattern, she made a habit of pausing before reacting, instead asking, “What are we missing?” or “Is there a different way to frame this problem?” LPM is on Amazon
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Top Habits to Develop Strategic Thinking

Top Habits to Develop Strategic Thinking

1) Step Back Regularly Why: Strategic insight comes from distance, not “busy”-ness One quarter, Olivia’s habit paid off when she noticed that several projects had quietly drifted away from the company’s core strategy due to shifting market trends. By pausing to reflect, she recognized the subtle misalignment before it became costly, enabling ABC to course-correct swiftly. Her example inspired others to adopt this reflective practice, embedding a culture where strategic thinkers didn’t just act—they paused, recalibrated, and ensured every step propelled ABC toward enduring success. Over time, stepping back regularly became a hallmark of the company’s strategic agility, empowering teams…
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Key Traits of Strategic Thinkers

Key Traits of Strategic Thinkers

5) Decision Awareness They weigh trade-offs and consider second-order effects. Decision awareness is a defining trait of strategic thinkers, setting them apart in complex organizational environments. Rather than making choices on autopilot or following established norms, strategic thinkers maintain a conscious understanding of the decisions they face—recognizing when a choice is being made, what options exist, and the potential impact each decision might have. This heightened awareness helps them pause, reflect, and evaluate alternatives, ensuring that every action aligns with broader objectives and delivers meaningful value. In practice, decision awareness means constantly asking questions like, “Is this the right moment…
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A Story on Strategy Vis-a-Vis LPM

A Story on Strategy Vis-a-Vis LPM

Once upon a time, a global technology firm faced mounting competition and market disruption. The executive team knew they had to rethink their strategy, but struggled to translate vision into execution. Enter Lean Portfolio Management (LPM): instead of making annual bets and sticking to rigid plans, they embraced LPM to continuously align strategy with execution. Leaders held regular strategy review sessions, ensuring that every investment directly supported the evolving strategic goals. As a result, teams became more empowered, pivoting quickly when market signals changed. Through strategy-driven LPM, the company transformed its portfolio into a living engine of innovation, delivering rapid…
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Other Mental Models — The Pareto Principle (80/20 Rule)

Other Mental Models — The Pareto Principle (80/20 Rule)

The Pareto Principle (80/20 Rule) Helps focus resources on the 20% of initiatives that deliver 80% of business value. Applying the Pareto Principle in Lean Portfolio Management (LPM), organizations often find that roughly 20% of their projects deliver 80% of the total value to the business. By identifying and focusing on these high-impact initiatives, leaders can maximize returns with less effort and resource allocation. LPM is on Amazon  
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Other Mental Models — Second-Order Thinking

Other Mental Models — Second-Order Thinking

Second-Order Thinking Before funding or prioritizing initiatives, leaders ask: “What happens next? What are the downstream effects?” Other example: When adjusting KPIs to better reflect desired outcomes, second-order thinking considers how these changes may influence team behaviors, reporting practices, and the ability to compare historical performance data over time. Second-order thinking is what Chess Players employ as they think through their next potential move. Chess players ask: “What happens next? What are the downstream effects?” They are not alone. Most of us think this way at work and at home. LPM leaders must think this way too... must be great…
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Other Mental Models — Systems Thinking

Other Mental Models — Systems Thinking

Systems Thinking LPM considers the organization to be a network of linked value streams, making decisions with the overall impact on the entire system in mind rather than focusing solely on a single project. One gear could move the whole system. Example: Viewing the portfolio as a dynamic system, where changes to one project or investment can impact others, leading to a need for balancing priorities across the entire organization. One gear could move the whole system. Also... the whole system working as whole, not in parts, is Systems Thinking. Improve the whole, not just some parts. Just like a…
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Other Mental Models

Other Mental Models

There are other Mental Models that you can use vis-a-vis LPM (Lean Portfolio Management). A Mental Model is a pattern your mind uses to understand the world. In a way, we all think, understand, behave, and act in a patterned way. It is the way your mind understands how something works. It is like a mental map or framework you use to interpret the world, solve problems, and make decisions... without needing to analyze every detail from scratch. Mental model = how you think. A side note: Mental Model is not, however, a sense-making map... that is what Cynefin is…
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Connection of Mental Models to LPM — Calm The Chaos. Part 12 – The Denouement

Connection of Mental Models to LPM — Calm The Chaos. Part 12 – The Denouement

5 Mental Models To Calm The Chaos in LPM There are 5 Mental Models used in LPM (Lean Portfolio Management) ... that you can also apply in life and any other aspects of your work (i.e., ART-level work or Team-level work): Mental Model #1: Limit Work to Increase Flow Old Mental Model: "More throughput needs more started work." New Mental Model: "Starting less = finishing more." Mental Model #1 instantly reduces/calms chaos. Mental Model #2: Capacity is a Real Constraint Old Mental Model: "Capacity? What capacity... just assign it to the teams. They will figure it out." New Mental Model: "We cannot…
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Connection of Mental Models to LPM — Calm The Chaos. Part 11

Connection of Mental Models to LPM — Calm The Chaos. Part 11

Mental Model #5 In Action: Feedback Over Prediction The Marshmallow Challenge Scene: Kindergarten In Rainbow Station Kindergarten, Teacher Lily divided her class into pairs and challenged all pairs to build as high a structure as they can with the materials on their respective table. On each pair's table are the following: a marshmallow (which must go as the tip of the structure), twenty spaghetti sticks, one yard tape, and one yard thread. The class was extremely excited. They all wanted to build a "Super Tall" building! So, the kids tried to build... On the first try, structures fell. They were…
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Connection of Mental Models to LPM — Calm The Chaos. Part 10

Connection of Mental Models to LPM — Calm The Chaos. Part 10

5 Mental Models There are 5 Mental Models used in LPM (Lean Portfolio Management) ... that you can also apply in life and any other aspects of your work (i.e., ART-level work or Team-level work): Mental Model #5: Feedback Over Prediction Old Mental Model: "Plan it perfectly upfront. Variance is failure." New Mental Model: "Short cycles help us adapt... before chaos hits." Mental Model #5 Calms chaotic flow by letting the system self-correct. Translating this to LPM (Lean Portfolio Management): Prediction = Big up-front planning; big up-front design. Feedback = MVPs, Learnings from experiments, Learning milestones, customer signals (not noise). Short…
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Connection of Mental Models to LPM — Calm The Chaos. Part 9

Connection of Mental Models to LPM — Calm The Chaos. Part 9

Mental Model #4 In Action: Make Work Visible Kanban + LPM In Action: The Big Classroom Project Scene: Kindergarten Your class wants to make a big Mural on the wall. But you cannot paint everything at once. You need to decide: What to do When to do it Who will do it That's what LPM (Lean Portfolio Management) does for the school. And Kanban helps everyone see -- visualize -- the plan... making work visible. Step 1: Ideas go to the "Funnel" box. One kid says: "Let's paint a big Nativity Night mural since Christmas is just around the corner!"…
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Connection of Mental Models to LPM — Calm The Chaos. Part 8

Connection of Mental Models to LPM — Calm The Chaos. Part 8

5 Mental Models There are 5 Mental Models used in LPM (Lean Portfolio Management) ... that you can also apply in life and any other aspects of your work (i.e., ART-level work or Team-level work): Mental Model #4: Make work visible Old Mental Model: "If I don't push, work will be ignored." New Mental Model: "If we visualize work, we can manage it." Mental Model #4 stabilizes/calms chaotic flow. LPM uses Portfolio Kanban to stabilize chaotic flow, and to visualize and manage work. To be continued ... LPM is on Amazon
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Connection of Mental Models to LPM — Calm The Chaos. Part 7

Connection of Mental Models to LPM — Calm The Chaos. Part 7

Mental Model #3 In Action: Strategy Before Execution Jeff Bezos’ Comet Strategy A comet has a “head” with a long “tail.” To Amazon, the “head” stands for the big sellers — profitable big items. The “long tail” stands for the “niche”/ rare items… but there are a lot of them! The aggregated sales of the “long tail” is greater than the sales of the aggregated “head.” How this “Comet Strategy” relates to LPM value flow The Portfolio “Head”: 1) Big initiatives 2) Loud stakeholders 3) High-Cost Epics But there is a large value hiding in the “Long Tail” … the…
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Connection of Mental Models to LPM — Calm The Chaos. Part 6

Connection of Mental Models to LPM — Calm The Chaos. Part 6

5 Mental Models There are 5 Mental Models used in LPM (Lean Portfolio Management) ... that you can also apply in life and any other aspects of your work (i.e., ART-level work or Team-level work): Mental Model #3: Strategy Before Execution. Old Mental Model: "Fund everything a little." New Mental Model: "Fund the few strategic things a lot." Strike a balance of funding strategic initiatives (the head), and niche / small work items that improve the system (the tail). Mental Model #3 reduces chaos from scattered investments. To be continued ... LPM is on Amazon
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Connection of Mental Models to LPM — Calm The Chaos. Part 5

Connection of Mental Models to LPM — Calm The Chaos. Part 5

Mental Model #2 In Action: Capacity is a Real Constraint Scenario 1 (good): A businessperson bought a shipping container to ship his goods from Denmark to the USA. That container has a fixed capacity vis-a-vis its dimension. The container's cost is also fixed. The schedule of the ship is also fixed. Time (schedule), Container capacity, and its cost are fixed. However, the content (scope) of the container is variable -- the businessperson can load the container with anything he wishes to load (if it is legal); however, the capacity is a real constraint. And it is okay... he cannot go…
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Connection of Mental Models to LPM — Calm The Chaos. Part 4

Connection of Mental Models to LPM — Calm The Chaos. Part 4

5 Mental Models There are 5 Mental Models used in LPM (Lean Portfolio Management) ... that you can also apply in life and any other aspects of your work (i.e., ART-level work or Team-level work): Mental Model #2: Capacity Is a Real Constraint. Old Mental Model: "Capacity? What capacity... forget that! Just assign the work to the teams. They will figure it out." New Mental Model: "We cannot commit beyond real capacity." Think of Capacity just like you would think about money. Capacity as currency. You must budget it... you cannot go beyond your means. Something must yield. Allocate it…
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Connection of Mental Models to LPM — Calm The Chaos. Part 3

Connection of Mental Models to LPM — Calm The Chaos. Part 3

Mental Model #1 In Action: Limit Work To Increase Flow and To Increase Finished Work Jacksonville, Florida. Summertime. In the summer of 2021, my family and I dropped by for lunch at Jollibee. The line of customers was long... and the wait time was not ideal... in fact, it was insufferable! The management -- sensing customer discontent -- put into play, Mental Model #1. They closed the "intake" of all orders (from online, phone-in, and walk-in). Then the manager directed her staff to focus on finishing the long queue of already "in-flight" orders. Mental Model #1 was invoked: Limit Work at its extreme sense:…
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