Strategic Planning in Volatile Times

Growth takes place whenever a challenge evokes a successful response, that in turn, evokes a further and different challenge. 

                                     - Arnold J. Toynbee

Long-range planning is usually considered to assume present knowledge about future conditions. It looks to make certain the plan's exact results over the period of its implementation.

Strategic planning, however, assumes that am organization must be quick to respond to a dynamic, changing environment, which may require changes in the future. And in today's volatile world, this ability is being sorely tested. 

Volatile times require new ideas and approaches to growth planning

With opportunities coming faster and disappearing even faster, decision making and flexibility becomes critical. Any response which is not nimble and flexible enough, can spell disaster for companies. Five year plans are therefore history, and one year plans are in - and even these need to be monitored on a weekly basis. The Economic Times in a recent article, decribed how various companies have adapted themselves to the times:

1. The Godrej Group has streamlined the strategy planning process to such an extent that the quarterly planning meetings which used to last nine hours, have shrunk to three.
2. At Cognizant the strategic planning team would meet a couple of times year to make sure things were on track, which turned to monthly meetings during the recession. With things having settled down a bit, they now meet every quarter, but with far more awareness about what is going on in the business.
3. At Marico, they realized that with the shrinking cycle time, the planning and budgeting cycles tended to get merged and it was therefore important to clarify the sanctity attached to the planning horizon. They have attempted to separate the two religously. 
4. At Bharati AXA GI the five year plan is redrawn every two years.
5. At Accenture, while the long-term directional view stays, the short-term tactics are tweaked constantly.

However, while most companies have seen planning cycles shrink, at software firm Persisitent, the reverse is true. The process now involves a bigger base of people discussing how the technlogy landscape is changing and a strategic response in the execution of things.

The trick, in these volatile times then lies in finding a balance between the short and long-term objectives and strategy. As S. Ramesh, President Finace and Planning of Lupin puts it." Often market-beating strategies see rapid failure without a solid implementation plan." Assessing how the strategy positions the company, the level of insight it rests on and therefore the kind of implementation it calls for, takes on critical importance.

Are you keeping up with the changing times? Even if you are, a Business  coach who specialises in leadership and strategy can support you in navigating and negotiating the turbulent times even better! For more details see the About Me page on this blog.

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