Do you review the appropriateness, viability and success of your strategy?
|A.||We have no strategic plan.|
|B.||We informally take stock of what progress we are achieving.|
|C.||We review progress on our strategic plan annually, but not the underlying assumptions.|
|D.||Every couple of years we assess if our strategy remains appropriate, viable and successful.|
|E.||We review at least annually, if our strategy remains appropriate, viable and successful.|
|[Score: A=0, B=1, C=2, D=3 and E=4]|
Why is this question important?
Periodically you need to assess whether the agreed-upon strategy remains valid in light of
- new knowledge, information
- opportunities and changes in the competitive, technological, economic and regulatory environment.
No matter how well and thorough the strategic planning process you have undertaken is – you cannot be certain that the assumptions underlying the strategy will remain valid. Even with a good map and scorecard, success from the strategy remains uncertain.
The reality – strategy formulation is an art, not a science. Thus it is necessary to have strategy testing and adapting meetings to examine the continuing validity of the strategy – not only its execution – and to modify and adapt the strategy over time.
Such a ‘test and adapt’ meeting should be at a minimum an annual event. It is part of the strategic analysis at such a meeting along with an updated PESTEL, industry and competitor analysis.
LG Philips address six questions at such a meeting:
- Is our strategy appropriate?
- Is our strategy superior to our competitors?
- Do all our team acknowledge and accept our strategy?
- Are we trying hard enough to execute the strategy?
- What are the risks associated with executing the strategy, and how will we deal with them?
- Do we have strategic scenarios in executing the strategy?
This is Stage 6 in the integrated management system that links strategy formulation and planning with operation execution.