Strategy? Definitely! Once things quiet down a bit.

Strategy is not a luxury

The world is constantly in motion. Daily we are confronted with unpredictable developments, rapid technological progress, and increasingly complex market conditions. It is tempting to put strategy on hold for a while, with the idea that today's hectic pace leaves no room for long-term thinking. But that is precisely why strategic exercises are more relevant than ever. As management expert Rita McGrath states: “Strategy is not a luxury for quiet times, but a necessity during uncertainty.”

Unpredictable developments require strategic thinking

Unpredictability is the new norm. Few would have predicted a few years ago that the Strait of Hormuz would be closed off. But it was already clear back then that fossil fuels are more sensitive to geopolitical turbulence than locally generated energy. Thus, less dependence on fossil fuels could provide a competitive advantage (due to lower risk). Another example: the trend towards increasingly more proteins in food products is already being overtaken by the trend towards more fiber. Unpredictable? A deeper underlying trend beneath the protein boom (or hype?) is the demand for healthy food. It has long been known that fiber is healthy.

No thick plans, but direction-setting choices

Quite often, the argument is used that it is impossible to plan in a rapidly changing environment. Yet, it is precisely necessary to make conscious choices and set priorities. No organization has the luxury of keeping all options open indefinitely. And – deliberately – keeping certain options open can also be a choice. Or in the words of strategy guru Michael Porter: “The essence of strategy is choosing what not to do.”

A shared vision of the future contributes to a flexible organization

Furthermore, strategic thinking forces you to consider developments you might not have noticed yet. The short and powerful example of Nokia illustrates this: the company missed the rise of the smartphone and underestimated the impact of mobile internet. Strategic thinking enables organizations to recognize trends in time and react proactively.

Finally, a clear strategy also ensures that everyone is on the same page. Without frameworks and a common goal, it is difficult to delegate, and that is precisely what is needed in hectic times.

Strategy, faster and smarter

The conclusion is therefore that strategy formulation is useful, especially in turbulent times. But – within a short timeframe – actually formulating a well-founded strategy that is spot on is easier said than done. The answer lies in a far-reaching integration of strategy formulation and operations. A short-cycle strategy process using a clear methodology. Not a Strategy Department, but team members who have learned to think strategically.

So give your strategy the attention it deserves. Not despite the hectic pace, but precisely because of it. With a smart strategy process based on a well-thought-out methodology. Read more at www.4c-valuecreation.com