I have recently met several executives who firmly state that they do not need strategies anymore. “The world has become so unpredictable that it is impossible to plan ahead. Strategy work takes focus away from running the business. We do Agile now and teams decide what they will develop.” Although I understand the challenges, I cannot be the only one who thinks these demonstrate the definition of an oxymoron.
It is true that the world has become more unpredictable, and it probably continues to do so. There is even an acronym for it, VUCA. It was introduced in the late 80’s to describe the volatility, uncertainty, complexity and ambiguity of conditions and situation. VUCA was originally a military term highlighting the importance of predictive intelligence and strategic planning. Without a purpose, people and organizations easily just react to external events.
Strategy work should be fun, inspiring, practical and help organizations and teams to focus. A strategy done well guides everyday work even in surprising situations, attracts talent and enables companies to embrace fundamental shifts like sustainability and circular economy. Adding speed, flexibility or experimentation are all strategic choices for a business. So how to turn strategies from stiff five year plans suitable for today?
First, customers and deep understanding of their needs must be in the core of any business. The antique strategies were internally driven; contemporary strategies are customer driven. A strategy must be built around understanding the competitive advantage a company delivers to it’s selected customers in selected markets. If your plan is to sell everything to everyone everywhere, your success depends on luck, monopoly or extreme power. The importance of customer experience is beautifully highlighted in a recently published book “B2B success breeds from customer experience / B2B menestys syntyy asiakaskokemuksesta”, (available only in Finnish so far, sorry). This book gives practical advice on how to find the essential customer understanding. A must read for this summer!
Secondly, contemporary strategies are dynamic, agile some say. Strategy work has become more a continuous process involving many levels in an organization rather than an annual board exercise. Legally boards do approve corporate strategies in many jurisdictions, and they are responsible for certain M&A activities on behalf of the shareholders. But intelligent boards understand that the process of creating a strategy is just as important as the outcome. Involving people and even customers in strategy work can be rewarding bringing more insights, opportunities, and an honest view to capabilities. It also secures commitment and alignment.
Thirdly, strategies need structure to assure they are actionable instead of daydreams or severe misuse of PowerPoint. Monitor Deloitte created a famous model called the Cascade of Choices, which is suitable for corporate strategies, business area strategies and even product strategies. I have used this model a lot and although it is an Oldie, it is a Goldie. During this spring I have come across a dynamic strategy framework called StratOps created by Taival. This model borrows from DevOps thinking enabling continuous, future-focused, and ecosystem centric strategies. This model resonates with me in every possible way, including the slight irony in naming… Apeiroga has partnered with Taival and I am really excited to start working with these talented strategy and Circular Economy professionals in August.
Rather essential elements for any successful business, and more relevant now than ever before. Definitely not a waste of time.
