For many businesses, the fast-paced volatile nature of the world today highlights the need to learn how to not just survive but thrive during uncertainty. However, for more than a few companies it's difficult to respond quickly and even more challenging to make decisions that are influenced by constantly changing factors. As a consequence, fundamental strategies need to be revisited, reworked, or sometimes scrapped altogether. The bottom line? The modern world around us plays a key role in how organizations develop and execute strategic planning and it's often these external elements beyond business that influence whether or not objectives will be met.
How do the uncertainty and volatility of today's world change how businesses do business? Well for one thing the chaos around us is of much more concern than historically has been the case making it even more critical for companies to recognize and respond appropriately. There's no doubt the world around us is changing rapidly from an economic, social-political, and technological standpoint locally and globally. The dynamics have shifted dramatically from just a few years ago when companies could create a strategy with a long-range purpose and feel confident that they had the tools and resources to see it through with only minor adjustments. Today that commitment has been replaced by a much shorter vision - one that must be capable of revision on extremely short notice. Building flexibility and adaptability in today's organizations is critical. In my twenties, I worked on a strategic development team for a business in the financial industry. We created a long-range strategy that consisted of a ten-year plan of its vision backed by a five-year strategy and a one-year operating plan. The strategy had a long-range focus and it was a sure thing. By contrast, today's business strategy is fuzzy when you get beyond three years. It's defined by a broad direction where anything can change - and it does.
Reviews Updates and Tweaks are Necessary Sooner
In years past a business would update a strategic plan about once every year in an effort to keep in line with long-term goals. Today leaders on the cutting edge are reviewing and making slight course modifications every 90 days. That doesn't mean they throw the entire plan away every three months and start over - the foundation of the plan always remains the focus. But it is necessary to examine the strategic direction by updating, revisiting, and continually tweaking it to ensure it is still appropriate for reaching long-term goals and values.
Recognizing the Forces of Change and Having Agility to Adapt
For businesses to thrive in this new era of uncertainty and change it's not enough to recognize how fast things are moving. Decision-makers and leaders who create strategies must recognize the forces of change and respond quickly and in the most appropriate way. They need to have the agility and the dexterity to shift focus and change direction on a dime without hesitation. Having awareness on every level and the foresight to anticipate change and respond quickly will separate the leaders from those who simply get by.