Today’s Wisdom - Strategic Awareness

Today, I want to share with you a concept that has been occupying my thoughts lately - one that I is a vanguard of a global phenomenon in collective awareness. The application is in the development of business strategy to maintain relevance in the 21st Century.

As business owners, we have long been taught to focus on market share, profits, and clear-cut goals - moving from point A to point B. This thinking has been at the centre of Capitalism going back thousands of years and in our lifetime it was sharpened by the 1980’s "greed is good" mentality, and there’s no denying this has delivered an unprecedented financial gain for the past 50 years.

Yet with all this we have the highest level of social disconnection in the past 200 years. Why, and what’s a possible solution?

Let me introduce the shift towards “Stakeholder Capitalism”.

In August 2019, the Business Round-table, an association of CEOs from major U.S. companies, released a groundbreaking statement. They emphasised a commitment to all stakeholders - employees, customers, suppliers, and communities - rather than focusing solely on shareholders.

This marked a significant shift from the shareholder primacy model that has dominated business thinking since the 1980s.

This shift isn't happening in isolation. It's part of a broader movement towards what is known as Stakeholder Capitalism, an idea championed by Edward Freeman.

The core principle - Businesses should focus on creating value for all stakeholders, not just shareholders.

But how do we, as small and medium-sized business owners, adapt to this new reality? This is where the concept of "Strategic Awareness" comes in. It has an association with Conscious Awareness.

Strategic Awareness is an approach that blends ancient wisdom with modern business principles. It's designed to help us navigate the complexities of 21st-century business while staying true to our values and purpose.

Here's how it works:

Traditional strategic planning takes into consideration the internal and external factors and then locks in the strategy with determination and grit. The issue in today’s environment is that the rate at which change occurs is mind-blowing.

Who would have thought 5 years ago that the business strategy is how to use Large Language Model and Artificial Intelligence to develop efficiency.

So Strategic Awareness is not revolutionary in its concept, but rather the need to have a continual feedback loop between the Internal principles and the External environment.

The following is a way to look at these and how it can be implemented into your businesses process.

Internal Strategy: This focuses on aligning your organisation's morality, values, and beliefs with its purpose. It's about understanding what truly drives your business beyond just profits.

???- Morality and Ethics: The principles that guide what is right and wrong in your organisation.

???- Beliefs and Values: What core beliefs shape your company culture?

???- Purpose: What is the overarching impact that your organisation looks to achieve?

External Strategy: This involves more traditional decision-making processes, focusing on market dynamics, competition, and financial performance.

???- Preparation and Planning: Understanding your external environment and developing effective strategies.

???- Flexibility and Adaptability: Being able to shift direction when circumstances change.

???- Leadership and Morale: Building trust and commitment among your team.

???- Timing and Environment: Recognising when to make your move.

The difference with Strategic Awareness is the Internal and External are integrated strategies. This integration creates a productive tension that encourages experimentation, adaptation, and continuous learning - all crucial skills in our rapidly changing business landscape.

Learning from Ancient Wisdom

Interestingly, this approach is not entirely new. Ancient cultures, from the strategic situationalism of Chinese dynasties to the collective decision-making processes of Melanesian societies, have long understood the importance of flexibility, adaptability, and community involvement in decision-making.

By incorporating these ancient wisdoms into our modern business strategies, you can develop a more holistic and adaptive approach to running your business.

Putting Strategic Awareness into Practice

To help visualise how Strategic Awareness works in practice, I have developed an experiential quadrant model. It looks at time and knowledge and how they can be combined.

Knowledge relates to whether the problem is ‘known and experienced’ and to what level.

Time simply means ‘how much time’ is available before the decision moves from Not Urgent to Urgent.

The goal is to not be under time pressure to allow ‘information downloads’ to be gathered.

1. Low Knowledge - Extended Time: Focus on developing a deep understanding of the problem and exploring alternative ideas.

2. High Knowledge - Extended Time: Leverage existing knowledge to build capabilities and validate foundational principles.

3. Low Knowledge - Short Time: Address immediate pressures by including external resources who have the knowledge and can assist with developing short-term inputs.

4. High Knowledge - Short Time: Apply well-established strategies with confidence, ensuring alignment with your organisation's morality and values.

The key is to recognise which quadrant you are operating in and adjust your approach accordingly.

This means you, as the business owner, need to shift your accountability to champion this process.

Why This Matters for Your Business

You might be thinking, "This all sounds great, but what does it mean for my business?"

I suggest that if you are feeling stuck and frustrated, even though you may be moving ahead, Strategic Awareness is a way to experiment with getting ‘un-stuck’.

Here are a few reasons you may want to investigate this further.

1. It helps you stay agile in a rapidly changing business environment.

2. It ensures your business decisions align with your values and purpose, leading to more sustainable growth.

3. It encourages a more inclusive approach to decision-making, tapping into the collective wisdom of your team and stakeholders.

4. It prepares your business for the shift towards Stakeholder Capitalism, potentially giving you a competitive edge in a growing business movement.

Remember, most business structures have been conceived based on 20th century fundamentals - to stay relevant, your business needs to evolve for a 21st environment.

I'm continuing to create tools and information on Strategic Awareness to help business owners navigate this new era of business with confidence and purpose.

If you're interested in learning more or would like to discuss how these concepts might apply to your specific business situation, please connect with me.

As always, I value your insights and experiences. I'd love to hear your thoughts on this approach and whether you feel there is potentially a place for it in your business.