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Situational awareness: What business leaders can learn from military strategy 

Written by Chip LaFleur | Dec 17, 2024 2:51:18 PM

Leadership principles transcend industries. Whether you’re leading a military battalion or managing a team in a business, situational awareness is a skill that sets great leaders apart. This concept, central to a recent conversation between Lieutenant Colonel Matt Rasmussen and I, offers lessons for decision-makers navigating complex environments. 

Matt’s military experience spans deployments to Iraq and Afghanistan, commanding hundreds of soldiers, and teaching strategy at the U.S. Army War College. His insights reveal how situational awareness—the ability to process and prioritize information about yourself, your competitors, and your environment—can help leaders make better decisions. Here are key takeaways from our discussion and how they apply to business. 

Know yourself, your competitors, and your environment 

In the military, situational awareness is broken into three “bins”: 

  1. Yourself: What resources do you have? What are your constraints? 
  1. Your competitors: What are they doing? Where are they strong or vulnerable? 
  1. Your environment: What external factors—political, economic, or cultural—could influence outcomes? 

For business leaders, these bins translate into a framework for competitive strategy. Do you understand your own strengths and weaknesses? Are you tuned in to competitors’ activities? Are you aware of shifts in your industry or broader market trends? Too often, businesses operate without clear answers to these questions, leading to wasted resources or missed opportunities. 

Intelligence before action 

According to Matt, “operations follow intelligence.” In other words, decisions should be grounded in data, not instinct or haste. This principle is especially relevant in today’s data-rich environment. 

Business leaders often face analysis paralysis—overwhelmed by information and unsure how to act. Matt’s approach offers clarity: prioritize intelligence gathering, but focus on the information that matters most to your objectives. Define your planning horizons (near, mid, and long-term), and align your intelligence efforts accordingly. For example: 

  • Near-term: What are this quarter’s priorities? 
  • Mid-term: What projects or hires will shape next year? 
  • Long-term: What industry trends could disrupt your business in three to five years? 

By linking intelligence directly to planning, you’ll ensure that every action is purposeful and resource efficient. 

If you’re not sure how to align your business intelligence assets and your planning, my team can help. Our data analytics platform, Clearboard, and our strategists can help you identify the metrics that really matter and forge a path forward.

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Clarity of vision—and communication 

One of the standout moments of our conversation was Matt’s emphasis on clarity. Leaders must set a clear vision and repeat it constantly. When a team understands the “why” behind their work, they’re more likely to execute effectively. 

In Afghanistan, he observed a leader who excelled in this area. Despite the chaos of war, the general’s priorities were consistent and well-communicated. This clarity ensured alignment across a sprawling, complex operation. 

For business leaders, the takeaway is simple: repetition matters. Whether you’re scaling a startup or managing a team of ten, communicate your goals frequently and plainly. “Over-communicate” is a mantra for a reason. 

Balancing strategic goals and tactical execution 

For myself and many other leaders, it’s can be hard to balance day-to-day operations with long-term strategy. Matt’s solution? Leaders must step back regularly to focus on improving the organization—not just running it. 

Leaders often feel the pull of immediate tasks, but he argues that delegating these tasks is essential to maintaining strategic focus. He recommends: 

  • Spending time on improvement: Dedicate a portion of your day or week to thinking about what’s next for your organization. 
  • Delegating effectively: Trust your team to handle tactical execution so you can focus on broader goals. 
  • Pacing change: Be mindful of your organization’s bandwidth. Introducing too many changes at once can overwhelm your team. 

Elevate underappreciated roles 

Another key insight was the importance of elevating roles that might not traditionally be seen as “strategic.” Matt shared how his former commander gave prominence to a small team of analysts, ensuring they had visibility and input at the highest levels of decision-making. This approach not only boosted morale but also improved decision quality by incorporating diverse perspectives. 

Business leaders can apply this lesson by: 

  • Recognizing quiet contributors: Highlighting the work of back-office teams, data analysts, or operational staff who keep things running smoothly. 
  • Involving cross-functional teams: Bringing diverse voices into strategic discussions ensures you don’t overlook critical insights. 

Leverage technology thoughtfully 

Artificial intelligence was a recurring theme. Matt noted that AI’s ability to process vast datasets can revolutionize decision-making, but leaders must approach it critically. Rather than blindly following AI-generated insights, he suggests combining them with human expertise to identify gaps and refine strategies. 

For businesses, this means treating AI as a partner, not a replacement. Use it to: 

  • Identify patterns in customer behavior. 
  • Forecast market trends. 
  • Challenge assumptions and surface alternative perspectives. 

But always apply a human filter to ensure outputs align with your goals and values. 

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The power of simplicity 

As the conversation wrapped up, Matt offered a parting thought: simplicity wins. In complex environments, over-complicated plans often fail. Clear, actionable priorities allow teams to adapt and thrive—whether on the battlefield or in the boardroom. 

For business leaders, this underscores the importance of focusing on what matters most. Resist the urge to overthink or over-engineer your strategy. Instead, return to your core mission and values. 

Final thoughts 

Leadership is about navigating complexity with clarity. Whether you’re leading a platoon or running a company, situational awareness—paired with clear communication, thoughtful planning, and a willingness to adapt—is key to long-term success. 

Business leaders have much to learn from military strategy. The tools may differ, but the principles remain the same: know your environment, act with purpose, and never lose sight of your mission. 

Want to share your thoughts or learn more about how LaFleur’s approach to business intelligence? Email me at chip@lafleur.marketing.