To develop visions and corporate strategy, a leader needs farsightedness, the ability to understand the long-range implications of actions and policies. A farsighted leader recognizes that hiring talented workers today will give the firm a long-range competitive advantage. A more shortsighted view would be to hire less-talented workers to satisfy immediate employment needs.

The farsighted leader/manager is not oblivious to short-range needs but will devise an intermediate solution, such as hiring temporary workers until people with the right talents are found. Conceptual thinking refers to the ability to see the overall perspective, and it makes farsightedness possible. A conceptual thinker is also a systems thinker, because he or she understands how the external environment influences the organization and how different parts of the organization influence each other.

A good conceptual thinker recognizes how his or her organizational unit contributes to the firm or how the firm meshes with the outside world.