The debate about what is strategy and is it still relevant, continues.
Some modernist business writers claim that traditional approaches are outdated. They argue that change happens so fast today that by the time a strategy process is developed and rolled out, its already outdated. There is some truth in this statement. A process inside a company can take weeks or months and then rolling it out and implementing it throughout the organisation. It all takes time.
I would argue however that there is still a need for the management team to engage in a process. A well develop strategy process doesn’t need to take months. The key is the commitment that leadership and management make to the process. The process is critical to align and sharing knowledge across the team. All members of team each hold valuable knowledge and skills about processes, people, customers and money. The planning process brings together this knowledge and identifies gaps that need to be filled.
Yes, change does happen fast and plans may need to be modified based events. But planning, if it is done well, must also be an ongoing process. Management must take time to step away from the day-to-day priorities and review and question where the business is, and if it’s on course towards meeting it goals.
Small companies are particularly guilty of not reviewing their business. These operations are often the exclusive domain of the founder/owner. Many see their role as directing and controlling all parts of the business but fail to let go as the business evolves. In the early stages this may have been necessary, perhaps vital, but as the business grows, new people are hired, more customers are found, more complexity happens there is a need to delegate responsibility. Many leaders in this situation can often feel out of control. They feel that they have lost touch with the day-to-day events and that the business is running away from them. What these leaders fail to understand is that their role has changed. Their founding role in the business of getting it started and growing has been successful and they now need to move their focus towards coordinating and directing the future of the business.
Planning is the critical tool for management. If it is done correctly, it will be a continual process. A leader and his team need to answer three questions: where are we? where do we need to be? and how do we get there? To answer these questions requires the solid commitment of the team to research, discuss, and craft a unique position in their market. Once this is done there is a need measured programmes that are reviewed, and modified if necessary.
With a well-conceived plan, the business will have a guiding star. The plan needs to be founded on solid understanding of the organisations purpose is and how it works to meet its goal. The plans should be simple, clear and realistic. Baby steps are best, as the organisation can see its progress quicker. Each successful step should be noted and celebrate by the whole organisation.
Yes, strategy may have changing needs but the process is still relevant and critical to the long-term survival of any business.