How can you avoid common strategy pitfalls in uncertain times?

1 Understand the sources of uncertainty

The first step to avoid strategy pitfalls is to identify and analyze the sources of uncertainty that affect your business. Uncertainty can stem from various factors, such as market trends, customer preferences, competitor actions, technological disruptions, regulatory changes, social movements, or natural disasters. Some of these factors are predictable and manageable, while others are unpredictable and uncontrollable. You need to assess the likelihood and impact of each source of uncertainty and classify them into different scenarios. This will help you anticipate the possible outcomes and prepare for the risks and opportunities.

2 Define your strategic intent and priorities

The next step is to define your strategic intent and priorities, which are the guiding principles and objectives that shape your direction and decisions. Your strategic intent should reflect your vision, mission, values, and competitive advantage. Your priorities should be aligned with your strategic intent and focus on the most important and urgent issues that you need to address. You should also communicate your strategic intent and priorities clearly and consistently to your stakeholders, both internally and externally. This will help you create a shared understanding and commitment to your strategy.

3 Develop a portfolio of strategic options

The third step is to develop a portfolio of strategic options, which are the alternative courses of action that you can pursue to achieve your strategic intent and priorities. Your strategic options should be based on the scenarios that you have identified and analyzed in the first step. You should also consider the trade-offs, costs, benefits, and risks of each option. You should not commit to a single option, but rather keep a range of options open and flexible. This will help you adapt to the changing conditions and seize the opportunities.

4 Test and validate your assumptions

The fourth step is to test and validate your assumptions, which are the beliefs and expectations that underpin your strategy. Your assumptions can be about your customers, competitors, market, technology, or any other relevant factor. You should not rely on intuition or past experience, but rather use data and evidence to verify your assumptions. You should also challenge and update your assumptions regularly and seek feedback from different sources. This will help you avoid biases and errors and improve your decision making.

5 Execute and monitor your strategy

The final step is to execute and monitor your strategy, which are the actions and measures that you take to implement your strategy and track your progress. You should align your resources, capabilities, processes, and culture with your strategy and ensure that they are agile and responsive. You should also set clear and measurable goals, indicators, and milestones for your strategy and monitor them frequently and systematically. You should also review and revise your strategy periodically and make adjustments as needed. This will help you achieve your desired results and learn from your experience.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?