An article in Wall Street Journal announced, “strategy, as we know it, is dead” in the current economic environment.
Executives, it reported, were adopting “just-in-time” decision-making. There is no longer time to “predict the future” and, anyway, the future was too uncertain. Now, quick adaptation and decisions were needed. Amazingly, some companies had even created “situation rooms” to monitor current events to support quicker decisions.
At a speech to the UK Institute of Directors, the CEO of Saatchi & Saatchi (Kevin Roberts) declared strategy is dead:
Strategy is dead. Who really knows that is going to happen anymore in this super VUCA – a volatile, uncertain, ambiguous and complex – world? The more time and money you spend devising strategies the more time you are giving you rivals to start eating your lunch
Rate of change in the world today is going up. It’s going up fast, and it’s affecting organizations in a huge way. The evidence of this can be seen almost everywhere:
- Many companies that are struggling with disruptive change – RIM, Nokia, Barnes & Noble, B&O, Kodak, Blockbuster etc. etc.
- Businesses disrupted by smartphones and tablet-PC – Digital cameras, eBooks, GPS devices, marine navigation, medical devices etc. etc.
- Disruptive business models based on collaborative consumption – books and media, car sharing, fashion, parking spot, toys etc. etc.
Unfortunately to many companies are stuck in the jar. Not being able to let go of the past.
It’s increasingly going up not just in a linear slant, but almost exponentially. And as things speed up, that means more stuff gets changing out there, and organizations to prosper have to react to that.
Companies that do the same old things, make only incremental changes, and demonstrate “me-too” thinking will get left behind in today’s rapidly changing, hyper-competitive, disruptive world.
Is the new strategy defined by the adaptability and flexibility to take advantage of any opportunity that presents itself?
Short URL & title:
Rapid rate of change is killing strategy — http://www.torbenrick.eu/t/r/lka
Experienced senior executive, both at a strategic and operational level, with strong track record in developing, driving and managing business improvement and development, change management and turn-around. View full profile