A Powerful Tool
Strategic thinking remains a powerful tool despite the present economic condition, and need be neither impractical nor ineffectual.
Many companies are reassessing their strategies at this time of year, but the current economic climate is not a normal one, and regular route maps will not help in showing a path to success.
This is a good thing, because it promotes the original thought and critical thinking needed for companies to keep ahead of the game.
Bad times can frequently initiate the type of strategic planning necessary to enable businesses to come out of them stronger than most others.
Here are three tips on how to go about this.
1. Your Operational Plan Must be Realistic
There are more variables now than ever before that have to be taken into consideration in realistic strategic planning.
Industrial suppliers, for example, are exposed to factors such as interest rates, commercial and domestic real estate markets and recession stimulus spending by the government with all of the licensing requirements that government spending help demands.
So be realistic, and get together all the information you need, and base your decisions on sound problem solving techniques and decision-making processes.
2. More Frequent Strategic Monitoring
In economic situations such as this one, things move very rapidly, and an increasing number of CEOs are carrying out their strategic monitoring on a more frequent basis. What was annual, or maybe even half-yearly, is now quarterly. In fact, many strategy meetings are held ad hoc in response to rapidly emerging opportunities.
Staying with the real estate example, as the market moderates government led infrastructure will provide many business opportunities, and this requires many regulation needs to be met.
Indicators such as these can enable businesses to become proactive and rapidly make the good decisions that are needed to make the best of these emerging opportunities.
3. Think Ahead
Don’t be caught off guard during these times, because opportunities will occur. You have to plan to be ready for them, and be able to make quick and decisive decisions.
However, don’t throw your long term strategy out of the window, because things are going to improve some day, and your forward strategic plan will once more be valid.
McDonalds haven’t stopped upgrading their premises and developing more healthy choices for their customers. Sure, kill off anything that seems no longer valid, but those strategies that make sense should be retained.
The present challenges call on CEOs to gather together good relevant information on which to base their decision making, to monitor as frequently as changing conditions demand, and to be aware of what the future demands from them.
Rapid decisions, monitored frequently, but with the longer term always in mind. That’s what’s needed!
‘Helping Leaders build great organisations”
(C) Daniel Lock.
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