The Art of Continuous Strategy Making

Avoiding Strategic Drift in B2B Companies

Many B2B companies suffer from strategic drift, where their strategies fail to keep up with the rapidly changing environment. This can lead to disastrous consequences if left unchecked, but the good news is that it can be easily avoided. This article will provide a solution to this problem and explain why traditional five-year planning is not enough in today's fast-paced business landscape.

What is Strategic Drift?

Strategic drift is a variation of the "boiled frog" theory, where a frog placed in a pot of cold water will not detect the gradual change in temperature and will eventually die. In the context of business, strategic drift occurs when a company's strategy does not change in response to changes in the market and the world at large. Just like the frog, the company will eventually fail if it does not adapt.

The Cause of Strategic Drift

The cause of strategic drift can be attributed to two main reasons: an over-reliance on the five-year plan and a lack of monitoring of industry and world events. The five-year plan is a traditional method of strategy-making, where a company sets its goals and objectives for the next five years. However, in today's rapidly changing environment, five years is a long time, and many events can occur that could render the plan obsolete.

The Solution: Continuous Strategy Making

The solution to strategic drift is to approach strategy-making as an ongoing, emergent process, rather than an event that takes place every three to five years. This means that the strategy should be revisited at least once a year and more often if necessary. The company should actively monitor its environment, both internally and externally, and make changes to the strategy if needed.

By doing this, the company's strategy will continuously evolve in response to changes in the market and the world. The result is that there will be no strategic drift, no flux, and no transformation or demise.

The Benefits of Continuous Strategy Making

The benefits of continuous strategy making are numerous. Firstly, it ensures that the company's strategy remains relevant and up-to-date in the ever-changing business landscape. Secondly, it allows the company to respond quickly to changes in the market, rather than being caught off guard and having to make radical changes later on. Finally, it fosters a culture of innovation and adaptation within the company, which is crucial in today's fast-paced business environment.

Conclusion

The traditional five-year plan is no longer sufficient in today's fast-paced business environment. B2B companies must adopt a continuous strategy-making approach to avoid strategic drift and stay ahead of the competition. By continuously monitoring their environment and making changes to their strategy when necessary, companies can ensure that their strategy remains relevant and up-to-date. The only thing it requires is actually doing it, rather than sticking to the outdated three or five-year rhythm that we have become so accustomed to. When will you make the shift to continuous strategy-making?