Test and Adapt

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:

  1. Is our strategy appropriate?
  2. Is our strategy superior to our competitors?
  3. Do all our team acknowledge and accept our strategy?
  4. Are we trying hard enough to execute the strategy?
  5. What are the risks associated with executing the strategy, and how will we deal with them?
  6. 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.

 

 

Management Meetings.