How Strategic Inaction Can Lead to Success
How often are you assessing your strategic plan for changes in market environments? Are you making panicked decisions based on these changes or staying true to your core strategy?
Following drastic changes in the market environment, we conducted an unscheduled meeting for a client in the Energy sector. In light of new trends, re-assessment of their annual strategic plan on a page was critical.
Comprehensive pressure testing of the strategic plan concluded that the bulk of previous year’s key initiatives were still relevant. There were, however, some very different areas of focus required. A new segment of potential consumers had emerged.
As we delved into potentially seizing the new market of lower scale energy users, it became clear that going after the market would seriously distract us from the major core customer (far larger energy users).
In a previous blog post, we covered the shiny new object syndrome and the dangers of straying from the meticulously planned strategic path. This new energy market was not shiny, but a tangible object in reach.
Saying “no” to a market segment was the right thing to do. The team felt liberated and a remarkable realignment of focus followed. We were able to confidently set a robust plan for the next 90 days (and 12 months). The company is now set to achieve amazing results from really leveraging its current market position.
Adding another area of focus at this point in time would have obstructed their business, divided focus, overwhelmed the team and complicated their strategy.
While we are always encouraging our clients to leverage their core competencies (finely tuned strength) to assess the market and new opportunities, saying “no” is sometimes a great strategy. Naturally, letting go of a possible key business opportunity might sting, but so does collective burnout. Besides, high level executives will always have more opportunities than time, so saying “no” is just another skill of a decisive leader.
So how does one know when to say “no” and how can it lead to good outcomes? American business author Bruce Tulgan has identified three phases of true “no-ledge”.
Assess the ask
Analyse all hidden and apparent costs. The bigger the potential undertaking, the more meticulously you plan.
Deliver a well-reasoned “no”
Now that you know everything about the proposition, you are able to provide a well-reasoned “no”. Delving into data will help you avoid any personal bias when making a decision.
Give a yes that sets you up for success
Saying no to one proposition sets you up for success in the future. Your “no” adds weight to your eventual “yes” because you’ve established that your words are backed by good reasoning and information.
When it comes to decision-making and implementing changes in your business, it is crucial to ensure they are in line with your strategic plan. Often, choosing not to make changes and sticking to your strategic plan paves the way for long-term success and business growth.
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