21:45
Faizan
Strategic planning is an annual event, right?
It must be, because according to a recent Harvard Business Review article, almost nine out of 10 executives said their companies developed annual strategic plans. Moreover, they developed these plans without consideration for the pace of change in their business environment.
But the real question is whether strategic planning should be an annual event. And in today's hyper-fast markets, the answer is a resounding NO!
As market pressures drive companies to become more flexible, responsive, and able to change on a moment's notice, the ability to execute on a strategy is rapidly becoming more important than the strategy itself. In fact, business branding expert Denise Lee Yohn goes so far as to say that in today's environment, execution is strategy.
According to Yohn, the amount of disruption in today's markets (and the speed at which it happens) requires a very different planning approach. Instead of setting a definite strategy and following through at all costs, companies should focus on "strategically adapting to and excelling at whatever path they find themselves on."รข€¨
In order to succeed with this approach, Yohn believes companies must focus more on having the right people and less on the right plan, replace strategic planning with strategic decision-making, and nourish a culture of discipline, action, and results.
She also recommends four basic strategies for today's planning environment:
• Keep it simple (to avoid getting bogged down with too many alternatives)
• Make your strategy about choices rather than issues
• Design your strategy around your industry's predictability and your ability to influence it
• Focus on what you need to do next
Out With the Old
These thoughts on strategic planning align closely with the concepts I use to create strategic agility with clients - the ability to move fast with focus and flexibility. Embracing these concepts requires shedding a number of old ideas about the traditional planning process.
It must be, because according to a recent Harvard Business Review article, almost nine out of 10 executives said their companies developed annual strategic plans. Moreover, they developed these plans without consideration for the pace of change in their business environment.
But the real question is whether strategic planning should be an annual event. And in today's hyper-fast markets, the answer is a resounding NO!
As market pressures drive companies to become more flexible, responsive, and able to change on a moment's notice, the ability to execute on a strategy is rapidly becoming more important than the strategy itself. In fact, business branding expert Denise Lee Yohn goes so far as to say that in today's environment, execution is strategy.
According to Yohn, the amount of disruption in today's markets (and the speed at which it happens) requires a very different planning approach. Instead of setting a definite strategy and following through at all costs, companies should focus on "strategically adapting to and excelling at whatever path they find themselves on."รข€¨
In order to succeed with this approach, Yohn believes companies must focus more on having the right people and less on the right plan, replace strategic planning with strategic decision-making, and nourish a culture of discipline, action, and results.
She also recommends four basic strategies for today's planning environment:
• Keep it simple (to avoid getting bogged down with too many alternatives)
• Make your strategy about choices rather than issues
• Design your strategy around your industry's predictability and your ability to influence it
• Focus on what you need to do next
Out With the Old
These thoughts on strategic planning align closely with the concepts I use to create strategic agility with clients - the ability to move fast with focus and flexibility. Embracing these concepts requires shedding a number of old ideas about the traditional planning process.
Posted in: business
