Strategy, as we know it, is dead
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
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.
- The high degree of customer loyalty which was normal in the “good old days” is now just a pleasant memory of times gone by.
- The consumer decision making process has permanently shifted
- And business models can no longer be treated as stone tablets divined by wise men on mountains to last for eternity.
Things will speed up
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?
Strategy as a directional tool is still valid, what companies need to do is ensure it is flexible and adaptable to meet the current environment while leaving room for further adaptation as things change.
Short URL & title:
Rapid rate of change is killing strategy — https://www.torbenrick.eu/t/r/lka
If you enjoyed this article, please take 5 seconds to share it on your social network. Thanks!