Hope is not a strategy

"Great going..we made x amount in Q1, 2x in Q2, our strategy for Q3 is making 4x" - sounds familiar?

This is merely a number based assumption or an optimistic financial target; but not a strategy !

Strategy is not just numbers for next quarter. A business strategy involves an Organisations's or a unit's vision and direction that will not only create an immediate effect but a long term impact on the company's growth, on its employees, stake holders, market and the society.

However flash trading, venture capital and private equity have promoted the notion of short-term goals, looking to maximize their profits and then exit; hence Investors' and analysts' focus on quarterly profits. Due to this, most Managers are trapped in a 90-day cycle and find it hard to implement long-term strategies. CXO's average tenure is getting shorter, they are often made to step out before they have the time to lay the groundwork for real value creation.

"Fitting in is a short-term strategy, standing out pays off in the long run.” - Seth Godin

Nevertheless, several Managers and Business enthusiasts do not believe in the significance of having a long term strategy mainly due to the following myths

Myth #1 : To catch up with fast changing technological landscape

The most popular argument is that the pace of changing technology demands short term goals and not long term strategies. However, Technology is ever evolving,is here to stay and will continue to tremendously aid businesses in achieving their goals but technology is a means, not the end. 

Without strategic planning, the only option a company is left with is either being reactive or being random. Reactive Management rarely leads to success and randomness (meaning - moving in all directions hoping something will work) is directionless and resource intensive. 

Myth #2 : To stay ahead of competition

A business that follows well thought-out strategic planning is being proactive towards achieving its growth goals and has a competitive advantage over non-strategic businesses. 

Moreover, a business without strategy doesn't plan well for Risk mitigation and will be in constant re-activeness; whereas a strategic plan will always help a business be more competitive, and more successful.

Myth #3 : To be agile

Agile is an implementation methodology, a means to achieve operational effectiveness; and often mistaken as business strategy or vision. By being agile, we are not necessarily changing strategic objectives or ultimate future state, but we are giving ourselves an opportunity to create a process by which to change the way we get there.Agility can bolster the success of a strategic vision, but is not a strategy in itself.

"Most people Over estimate what they can do with short-term goals, but under estimate what is possible with long term goals"

Conclusion:

Every organization, regardless of its type or size, has to have a vision of its future and a road map for getting there. It is critical to look out further than just your next sprint.However, keeping in mind the evolving technologies, competition, changing policies, laws & regulations and many other rapid advances; Organisations need to create a dynamic strategy framework that gives them the latitude and flexibility to change as things change around us.That way, ultimate strategic goal isn’t changing, but the way they’re going to get there does, giving the ability to adapt to changes.

About the Author

Lakshmi Sirisha Tadepalli

Principal Consultant – Service Integration And Management |Software Asset Management Specialist | ServiceNow Functional Consultant | Author – Sales Decoded book | Founder - Aasra NGO