Why Strategic Insight Is Necessary To Ensure Business Survival

By Paulette Short

The one outstanding characteristic of the modern world is the fact that things changes quickly, unexpectedly and that such changes can easily bring about vast changes in the way business is conducted. It is therefore in the interest of all organizations to be aware of changes that are likely to occur. Strategic insight allows companies to react in time and to take advantage of changes within their operating environments.

Strategies need to be developed to remain relevant, competitive and to thrive in a fast changing world. Such plans are broad in their scope rather than narrow, specific objectives that need to be achieved on a day to day basis. In order to develop long term strategies it is necessary to study the various environments that have an impact upon the operation of the organization.

One of the biggest challenges when devising long term strategies is to deal with the incredible pace of change. Not only do things change quickly, but the nature of change is also very difficult. Many innovative companies keep their new technological developments under wraps, for example and it is tricky to foresee them and their possible uses in gaining or maintaining a competitive advantage.

The very purpose of strategic planning is to turn change into opportunity. This requires a close study of political developments, trends in the global markets, new technological advances and even social developments. The secret is to devise ways in which to take advantage of those developments rather than to react in a defensive manner. Change should be seen as an opportunity rather than a threat.

The one area in which larger businesses fail is to honestly identify their own strengths and weaknesses. It is often deemed unseemly to admit to weaknesses but unless they are listed and acknowledged it is impossible to do something about the matter. Naturally, such deliberations need to be confidential in order to prevent competitors to take advantage of weaknesses admitted and documented.

In order to take full advantage of costly strategic planning processes, businesses need to translate their strategies into plans. It is only natural that such plans will change because of the unpredictable nature of the external environment. However, business units need to translate strategies into action plans and those plans need to be communicated to the lowest level of the organization.

No business can hope to survive without a long term strategy. Developing such a strategy is a daunting task and requires a very high level of skill. Most corporate organizations employ highly talented teams to study their operating environments and to identify likely changes that will have an impact upon the business of the organization. Strategies also need constant updating to make provision for unforeseen developments.

Strategic insight is extraordinary difficult to obtain. It requires the skills of many professionals that are experts in the various fields that have an impact upon the way business is done. It is an expensive exercise, but vital. Without operating strategies businesses simply will not survive.

About the Author:


Post a Comment