A series of views – view 5, the strategic view
Why you need to use research to set a course out of the storm now
1. Where are we now? (Strategic analysis)
We have been using the analogy of being in a major ‘storm’ during the pandemic and post Brexit to give context to the critical importance of organisations using research to create suitable strategies for the future.
“Strategy is the direction and scope of an organisation over a long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations” Johnson, Scholes & Whittington
Last week in the UK we experienced taking ‘Step 2’ of the Government’s COVID 19 response ‘roadmap’ with businesses such as retail, personal care and outdoor hospitality reopening. Research from the DMA last month (March 2021) indicated that although the majority of businesses (70%) are still being negatively impacted by the pandemic, nearly two thirds (63%) are starting to see signs of recovery. This is reflected in the estimates of revenue decline. The findings do however, suggest there is a potentially long road to fully recover from the challenges of the last 12 months. Other respected research sources such as Gartner and McKinsey are also highlighting a more positive outlook for many organisations.
“Before we get too carried away on a wave of euphoria it is important to note that…the world has changed”
This is very encouraging news for all of us. Before we get too carried away on a wave of euphoria, it is important to note that many consumers’ and business customers’ attitudes and perceptions have shifted significantly. The world has changed.
2. Plotting your organisation’s course (formulating your strategy)
This framework helps to explain how the insights we have gained from our research and analysis enable us both to formulate suitable strategy and to create a roadmap that can be shared with all stakeholders.
3. What does our strategy need to include?
- setting a course
- providing a clear roadmap
- deciding what we will do and, most importantly, what we won’t
- what products or services to develop
- which projects to prioritise
- How to achieve advantage
- there needs to be a value to both the organisation and its customers
- Changing environment
- how the organisation will address the changes
- how it will respond to the speed of change
- Configuration of resources and competences
- pivoting or aligning these to our chosen market or markets
- which markets or parts of markets to target
- where to invest resources – human and financial
- market positioning
- Fulfilling stakeholder expectations
- How it will fulfil all stakeholders’ expectations including: employees; customers; communities; investors etc…
Given the ever increasing speed of change our chosen course or strategy needs to be reviewed on a regular basis. Setting any course will need adjustment to allow for tides, currents and changing weather patterns so the changing business environment needs to be considered in the same way.
4. What are other organisations saying they need to do?
Our research, conducted late last year, identified the importance for many organisations of the following actions to successfully navigate towards the ‘new normal’:
- Look at fresh ideas and how to adapt using existing skill sets
- Identify the right things to focus on
- Review the purpose of the organisation.
- Review brand values
- Closely manage changes
- Train employees – especially in the use of IT and digital
- Retain talent
- Develop leadership skills – especially to support the shift to hybrid working and the changes in employee expectations
- Provide some certainty in an uncertain business environment – use a clear roadmap with stage gates, communicate it, review it regularly and stay agile
- Keep scanning the internal and external environment for change
- Keep reviewing and adapting plans
- Seek help early. None of us know it all. How others have adapted to the new world can inform our own thinking.
- Communicate, communicate, communicate
“We need to provide some certainty in an uncertain business environment – use a clear roadmap with stage gates, communicate it, review it regularly and stay agile”
“Seek help early. None of us know it all. How others have adapted to the new world can inform our own thinking.”
THE BOTTOM LINE
Uncertainty and volatility will continue to feature in 2021 and beyond.
Some things are likely to have changed irrevocably. Changes to employees’ expectations mean that hybrid working is likely to stay for many. Changes in customer behaviour and expectations will require increased ‘real time’ data collection approaches and an agile approach to providing an engaging customer experience.
Challenges and shocks are inevitable as we move towards a new normal’ – whatever that might end up being.
Charting a course and communicating a clear roadmap to all stakeholders is a must to successfully navigate towards the future.
We help organisations to deliver transformational change. If this article has given you food for thought, get in touch. Perhaps we can do something for you.