Every company should be striving towards strategic agility, which we define as the ability to improve performance during disruptions. This is the critical factor in companies that not just survive but thrive during hard times. We have identified six key principles that contribute to strategic ability. Test where you stand on it with the following questions:
Which would you prioritize: Speed or perfection?
In a crisis, opportunities come and go quickly, so acting fast is more important than quality.
Which is more important: Crafting a strong plan or maintaining flexibility?
While strategic planning is great and a key to mapping a long-term road map showing you how to play to win, in a crisis the plan can lock you into a path that may no longer be relevant. You need to be willing to throw out even a well-crafted plan if the landscape makes a dramatic shift.
Which takes a higher priority for you: Diversification or optimization?
Companies that overemphasized efficiency and optimization did not fare as well as more diversified companies during the pandemic. Diversification is a great hedge against unexpected shocks in the market.
Which structure do you think works better in a crisis: A hierarchy or empowered teams?
If you said empowered teams, you are correct. Since they are by nature decentralized, no single blow can take them out.
Does your company embrace failure?
Part of the reason you may be reading about how to thrive in hard times is no one likes failure, but you must be willing to embrace it if you want people to take risks. In a crisis, it’s even more important to take risks, as it is key to moving quickly.
Are your resources locked down?
They shouldn’t be. It is important to allocate your resources in a way that they can be moved or reconfigured quickly in a crisis.
While the COVID-19 crisis will eventually come to an end, there will always be something else unforeseen on the horizon, so it is important to ensure your company is agile enough to weather future storms.
Further reading:
6 Principles to Build Your Company’s Strategic Agility
by Michael Wade, Amit Joshi and Elizabeth Teracino
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