Blue-sky thinking encourages companies to explore strategies in an unconstrained manner and be open to limitless possibilities. In such situations, the objective is not to come up with the best or most effective idea but to brainstorm multiple ideas, no matter how eccentric or asymmetric they may appear at first.

Given this approach, companies should ensure they involve a broader set of cross-functional stakeholders who bring in varied perspectives. In some cases, changes in the venue (e.g. an offsite location or a customer or supplier site) help.

To make this successful, leaders should ensure that all voices are heard and ideas are not shot down. Lastly, any past biases (e.g. "we have tried this earlier") should be left outside the room.

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Signs that a strategic course correction is required can come from internal or external sources.

Typical external sources can cover multiple stakeholders such as customers (cancelled orders or an increase in complaints), investors (selling shares in the company), competitors (growing at a relatively faster pace in terms of revenue or bottom line), or even suppliers (refusal to do business).

In addition, internal sources can also help identify leading signals – these can come from employees in terms of higher attrition or lower employee satisfaction scores. Open conflict within leadership teams – specifically cross-functional – often highlights impending risk.

A leader is always in listening mode across all these stakeholders, trying to decipher what is noise and what is the underlying message being conveyed.

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