Historically strategies have been developed based on assumption made about how markets work. The aim of a strategy has been to develop competitive differential, awareness and value that attracts markets. Markets have dramatically changed and thus old strategic thinking and related methods are no longer relevant to the market. They simply don’t work anymore.
From Fortune Magazine: We’re not living in ordinary economic times. The convulsions of the past five years have left many business people asking the most fundamental questions about their companies: Will our strategy work in this environment? What must we change, and what must we not change? Do we need a new business model?
Reconsidering strategy can turn into a miasma that consumes endless time and yields nothing. Yet the process is manageable. One way to think through your strategy in today’s uncertain environment is to answer three basic questions:
- What is our core?
- How is today’s unprecedented environment changing our customers and their behavior?
- Is our industry being deeply restructured, and if so, how will it affect us?
What Has Changed? Strategy is Now Driven From the Other Side of the Wall
Creating a road map of how your organization will succeed is now a process influenced by the rapidly changing market dynamics. Previously strategy included an assessment of the market but limited by the perspective and terms of how one defines “the market“. The definition has changed in that consumers and business are now defining the market in real-time events, the changing interest fueled by conversations. The definition and sentiment of a market is framed by real-time conversations about anything, everything, anyone and everyone.
The Rate of Change and Rate of Interest Is Changing Strategic Models
Strategy is critical for any business but if you are following old strategic methods then you will fail critically. The markets of conversations spread faster than most organizations can react. When markets change so must your strategy. Building a strategy from the outside in is vital to your future success. Much has to change and thus the thinking about “how” to build an effective strategy must also change.
Strategic thinking no longer follows the usual rather it anticipates the unusual.