Strategic Foresight – The Skill that Every Leader Needs to Learn

For most of the 20th century, leadership has been about managing the known about optimizing for efficiency and reducing variance in every sphere of work. 

Here are some key insights about what this means for all of us leaders:

Curiosity is not a soft trait. It is a strategic capability.

As leaders, we must continue to be curious and seek answers to questions like:

  • Among the shifts we see in our context, what is signal and what is noise?
  • What would have to be true for a trend to matter to us? 

One simple filter we can use when evaluating emerging trends is the 3R Test:

The goal is not to chase every wave. It is to catch and surf the right ones.

Imagination is a key skill that can help us create plausible futures, from the current reality. 

  • How will this specific trend play out?
  • How will this trend interact with the other trends that are playing out simultaneously? 

One way for us to test and validate our understanding and remove biases is for us to design and run multiple experiments. 

As with any scientific experiment, we need to arrive at a hypothesis based on the understanding created through radical curiosity and strategic imagination, and test that hypothesis by designing and running an experiment, which can either confirm our hypothesis or render it untrue. 

In complex adaptive systems, small changes often precede or lead to major shifts. What looks like a minor regulatory tweak today may become tomorrow’s business model disruption.

What we are seeing right now with the tariff’s announced by Trump is a case in point. 

As leaders, we must build distributed sensing mechanisms:

  • Enable Customer-facing teams to feed weak signals (shift in perception or customer behavior) upward
  • Create Cross-functional forums to connect seemingly unrelated dots within the organization

The question is not “What do we know?”. The question is “What are the shifts that we are noticing?

Scenario planning is not about storytelling. It is about stress-testing assumptions. This is something that is already common practice (or should have been) in most organizations. 

This is asking “What if” questions: 

  • What if a key supplier disappears.
  • What if AI commoditizes your core offering.
  • What if regulation shifts overnight.

This is like training people to be prepared for a fire accident – you predict different scenarios, you build a plan for those scenarios and then you share them with all the concerned people (and if they are critical, then practice the plan).

Before every major transformation, I ask teams to imagine this:

It is 18 months from now. The initiative has failed spectacularly.

Why?

Complex systems rarely fail because of one dramatic mistake. They fail because of accumulated unaddressed tensions.

The pre-mortem makes those tensions visible early. 

It can also help us understand the key dependencies for success. 

The ultimate goal is not successful transformation.

That requires what I call Contextual Fluency — the ability to apply timeless leadership capabilities (trust, psychological safety, empathy, clarity of purpose) to highly specific emerging demands like AI literacy or sustainability transitions.

Two capabilities matter disproportionately:

Purpose becomes the anchor when certainty is unavailable.

Multiple studies suggest that a significant portion of today’s skills may be obsolete within this decade.

Capability building can no longer be episodic.

It must be embedded in daily work.

Learning must move from event-based to workflow-based.

Machines and algorithms will not stop learning, neither should we. 

As leaders, it is our responsibility to ensure that we are putting in enough energy, attention and resources to enable our teams to learn in proportion to the same being deployed for AI tools to learn and get better. 

Leadership today is less about control.

Do share your thoughts and continue the discussion

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