Strategic planning is crucial for companies today facing accelerated change and disruption.
Traditional strategic planning methods with rigid multi-year plans struggle to keep pace in volatile markets. This is where agile strategic planning brings tremendous value. It incorporates agility, customer focus, and rapid adaptation into the planning process.
One key aspect of agile strategic planning is the Strategy Aspect. This focuses on formulating strategy in an flexible way to steer the organization from 0 to 12 months and from 12 months to 3 years (bifocal approach). Here are some tips on applying the Strategy Aspect:
Focus on Organizational Health
Organizational health should be the guiding priority when developing a strategy. Financial goals are important but optimizing health across cultural, operational, and leadership dimensions is the foundation. Healthy organizations embrace change and mobilize quickly.
Adopt a Future-Back Approach
Instead of extrapolating the future from current trends (Future Thinking), identify a desired future state or vision. Then work backwards to define the strategic initiatives to reach it. This “future-back” planning lets you create the future rather than predict it.
Prioritize an Enterprise Agility Way of Thinking (EAWT)
Make cultivating an Enterprise Agility Way of Thinking (EAWT) central to the strategy. Develop strategic initiatives to improve sensing capabilities, empower workforce adaptability, increase innovation rates, and enhance customer centricity across the organization. Check more about EAWT and a Sustainable Player here.
Examine Adjacent Markets
Look at adjacent markets, capabilities and customer segments to uncover potential new growth opportunities. Exploring and testing ideas in related spaces outside the core can reveal new strategic directions. Check the Principles for Accelerated Change 11 and 12.
Set Broad Goals
Define strategic goals that are directional rather than definitive. Detailed multi-year plans fail in disruption. Bold goals provide direction while leaving room to pivot as conditions change.
Develop Options and Contingencies
Rather than a single strategy, formulate strategic options and contingency plans to deploy as circumstances require. Preparing alternative strategies creates flexibility to adjust.
Take both a long-term strategic view and a short-term tactical focus. The bifocal approach balances the big picture vision with the immediate next step priorities.
Continually Re-Prioritize
Agile strategy is not set in stone. As new opportunities or threats emerge, re-prioritize strategic initiatives frequently. Regularly review and realign strategic priorities.
Encourage Bottom-Up Innovation
Innovation shouldn't be solely top-down. Foster idea flow from all levels and integrate bottom-up innovations into strategic planning. Empower people to shape strategy. Check how Shared Progress can support you.
Take a Test-and-Learn Approach
Test new strategic initiatives experimentally through pilot projects before full deployment. This provides real data to inform if and how to move forward.
Adopt Two-Speed Planning
Have a multi-year vision combined with quarterly goals and iteration plans. Long-term strategy guides short-term execution. Planning occurs concurrently across horizons.
The Strategy Aspect enables organizations to steer strategically while remaining adaptable. By incorporating agile planning principles like Future Thinking, examining adjacencies and using a bifocal approach, companies can develop resilient, flexible strategies to navigate uncertainty. With clear direction and rapid learning, organizations can chart a course to continued success, no matter how rough the seas.