| A Silver Lining in the Economic Crisis...Strategic Focus |
  A dark cloud of economic uncertainty has been hanging over the business environment for the past three years. Are we finally ready to examine its silver lining? Those that have, are finding that it energizes their organizations. The renewed energy comes from taking a step back to strategically view what they’re doing and what needs to be done to adjust to new expectations of stakeholders and customers. Re-positioning their organizations is paying off in the short-term and hopefully will provide a model for continuous updating long after the crisis is over. History demonstrates that ‘the strategy that makes a company successful, usually isn’t the strategy that keeps them there.’ Take Wal-Mart for example. They grew into the largest retailer in the U.S. by focusing on rural markets, but it’s their strategic focus on economies of scale that has enabled them to sustain their advantage over their competition. Successful business leaders are keenly aware of the current situation, at the same time they are planning for the future. In good times, and probably more importantly in challenging times, leaders need to assess where they are and plan for the organization they’ll need when they come out the other side of chaos. Is this what your business is doing? Most business managers are familiar with the term strategic planning; a navigational tool highlighting where the organization is going and how it’s going to get there. Along with our heightened awareness of the importance of strategic planning we’ve created a dilemma --- most major initiatives are deemed highly strategic, making it increasingly difficult to distinguish between the many priorities and goals initiated by the organization. Business researcher and author Andrew Carey states, ‘When everything is clearly strategic, often nothing strategic is clear. When everything is designated as a high priority, there are, in reality, no priorities at all.’ Responding to economic circumstances many companies retreated into a survival mode; cutting operations, people, and investments in equipment, training, and innovation. Most of these decisions were made from a reactionary position in order to quickly adjust to economic indicators, while balancing the expectations of stakeholders. Little attention was given to assessment and planning. Although it may appear counterintuitive, the reasons to put time and energy into planning are even more pressing during times of uncertainty, change and crisis. Yes I hear you. Resources are strained. You’re focused on cutting back. Strategic planning isn’t even on the radar. But keep in mind that planning is not a luxury that is best scarified when stresses and uncertainties are mounting. A solid process actually can prove to be the light at the end of the tunnel. And it generally doesn’t cost as much as managers fear it will or as much as not planning does. Here are 6 reasons for conducting strategic planning during challenging times, adapted from a recent article published by Synthesis Partnership:
The only thing we can be certain of in the future is that change is here to stay. Those changes will have impacts on our domestic economy as well as global. Business leaders need to be equipped with the resources, tools, and techniques to properly assess and strategize for the future success of their businesses. William A. Galston, Senior Fellow at The Brookings Institute suggests that, “once the dust settles from this economic crisis we are likely to enter a period of new normality, with lower household debt, higher personal savings, and less consumption as a share of Gross Domestic Product. The effects of this transition will ripple through the domestic and international economies.” Consider these motivators as a call for action for your business to take the necessary steps to prepare for the new tomorrow. |
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