Strategy - when an unexpected event tests the foundation

The current environment will be testing the existing strategy of most, if not all organisations. In the early stages of the Pandemic, protect, react, adapt and manage have been the focus. And now of course, operationally moving people back to work in the new world.

As there is now light at the end of tunnel and the impact is at least partially visible, organisations will also be running a ruler over their strategy. Does it stand up? What do we need to change? What business gaps did we find we had when in crisis mode and what did we do better than we thought we would? What did we learn about ourselves and what does our future look like?

We have covered the basic fundamentals of strategy and why it’s important in Strategy – something for someone else to worry about? 15/5/20. I thought it now a perfect opportunity to consider, what will be on the minds of your CEO and executive team, as we move out of the crisis period and look to the future? Testing and re-setting strategic priorities will likely be already underway, so I thought I would share a terrific article. Providing a good frame and capturing what I imagine will be, many of the conversations underway, right now.

As with any strategic process, there are a number of important questions to be answered first. The article includes a number of broad key questions on page 3 that will require any business to ask of itself, in determining the way forward.

Beyond COVID 19: Five key strategic priorities for a post-crisis world https://www.pwc.com.au/insurance/pwc-beyond-covid-19.pdf

As indicated in the title, the article focuses on five recommended strategic priorities.

• Realign your cost structure and sharpen productivity

• Supercharge digital transformation to create a digital enterprise

• Carve out new revenue streams

• Prepare your workforce for the new world

• Strengthen capital efficiency

All of these important priorities have been broadly discussed in many Industry forums and publications. As critical areas of focus, the article makes an important observation. These five key priorities shouldn't be new - any good strategy should have included some or all of them already. COVID-19 has ramped up the urgency of these competitive imperatives.

This is an important test for an organisation. Was the strategy broadly correct and just needs greater urgency and focus? Or was the strategy missing the mark?

Reinvention and differentiation. Out of every crisis come opportunities for competitive reinvention and differentiation.Today’s strategic rethink provides a catalyst for accelerating operational transformation, developing new business models and connecting more closely with customers.

This closing commentary captures the situation well. Those that treat the way forward as an opportunity to focus on the right things and with a sense of urgency will be those that will thrive. We also cannot forget that the success of any strategy will be in the execution and importantly, connecting the entire business. A strategy without execution are just words on a page.

As mentioned in my early post, remember to lift your eyes and think about what is happening in your organisation and why?. What is driving change and focus? Remember the more you understand, the clearer you can be around your messaging and your own opportunities.

Now think about yourself in a time of reinvention. Change creates opportunity. It might be different to what you ever imagined, so think big and explore with an open mind!

Until next time

Lisa