Rejuvenate corporate strategy for the post-COVID world

Across many developed economies business activity is booming after a protracted slowdown caused by coronavirus. But many organizations are now finding the competitive landscape has shifted beneath their feet, forcing them to consider the relevance of their strategy for a changed post-COVID world.   

This was the focus of a recent Leading in Turbulent Times webinar led by Patrick Reinmoeller, Professor of Strategy and Innovation at IMD.  

The pandemic has among other things accelerated a technology revolution around the globe and heightened awareness of climate change and the pressure for business leaders to take positive action.  

Amid global tectonic shifts, even if traditional corporate strategies are still successful today in terms of driving competitive advantage, they do not guarantee relevance tomorrow.  

“You may have the highest profit in the industry, but if people realize you are harming the environment, or you exploit your workforce, suddenly a new perspective cuts the relevance of your competitive advantage,” says Reinmoeller.  

Many business leaders are now looking beyond short-term financial performance and focusing on sustainable value creation. He cites the example of carmakers that have pledged to stop selling combustion engine vehicles in the near future and become fully electric. Petrol and diesel models have been cash machines but executives at these companies are responding to the market.  

“That is unbelievable, that takes an enormous amount of courage to say we have to stop doing what made us great, we have to move on,” says Reinmoeller. “I think relevance is a quality that leaders have long overlooked,” he adds.  

So how do we prepare a strategy that ensures relevance in a future that we cannot predict? Reinmoeller outlines a four-step framework for strategy rejuvenation.