This fall, one of my new responsibilities is to occasionally pick up our twin granddaughters from nursery school. They wrap up midday and their parents don’t have the same work flexibility as I do.
When it comes to driving over there, I rely on a number of different routes. That’s because on any given day, there may be construction delays, unexpected traffic, weather-related issues, or something else unforeseen. I’ve learned plenty of new backroads these past several weeks (!) thanks to Waze, which is extremely helpful in providing real-time route adjustments.
In business, conditions are likewise subject to unexpected changes. And whether those are economic, competitive, political, or some combination, here as well, it is important that your plans don’t leave you floundering in search of a viable path to your goals.
Strategy is a Process, Not an Event
“It is not the strongest of the species that survives, nor the most intelligent. It is the one that is most adaptable to change.”
That quote, while certainly sounding like something Charle Darwin would say, was apparently penned by someone else. Regardless, it does a nice job of summarizing his theory of evolution. And it is equally applicable to organizations: It’s not necessarily the largest or best-funded of those that thrive — but the ones that learn the fastest… and adapt.
And yet, some organizations treat strategic plans like an annual or quarterly budget — except in the case of strategic plans, the time line is extended out over several years. This assumes the world and the context in which the organization operates are essentially static. That’s never been the case, and today’s turbulent circumstances have made it abundantly clear how quickly things can change.
Given those ever-changing conditions, it makes sense to design some adaptive capability into your strategy. This doesn’t mean you will be able to predict what changes are likely to come, but rather that you anticipate factors that may impact your plans.
For example, Healthy Communities Foundation has revised its plans to include the ability to quickly respond to emergencies. Similarly, the Morgan Family Foundation has established a “rapid response” pool of funds to support grantees impacted by Federal changes.
Both of these organizations have explicitly designed flexibility into their plans. Here are three steps you can take to do the same…
#1. Review Key Assumptions
Which external factors have the greatest uncertainty and have the highest potential impact on your organization? What type and size of change might force you to adjust course — a shift in funding from a key donor; a change in policy of a government agency; etc.?
For each of these, develop an if/then approach. What signs would suggest an unfavorable shift was about to occur? What action(s) would you employ should Event A, B, or C take place?
#2. Shorten Feedback Cycles
Annual reviews of strategy development are simply too infrequent. Instead, commit to spending time each quarter reviewing your plans and current circumstances, both internal and external.
Are you approaching any critical “trigger points” that would necessitate action now or can you wait to review next quarter? Are new programs progressing as planned? If not, why not? Consider issues spelled out in your plan, but also look to see if changes you didn’t anticipate are taking place.
#3. Plan for Learning, Not Just Action
As you define the implementation steps in the roadmap part of your plan, consider incorporating planned learning steps explicitly.
Incorporate how and when you will check on the progress and pace relative to your planned steps. Design check-in assessments so you are building adaptability into your plan specifically. This may include defining the process by which you would pull the plug on an initiative if it is not meeting objectives, rather than letting it run its course until the next plan review cycle.
Reflections
Thinking about what you would do should your plan not go according to plan can take some getting used to; specifying a plan’s external dependencies is not always easy or obvious.
Remember that the question is not whether you can predict what will happen in the future (you can’t), but whether you can anticipate potential challenges and the changes they would necessitate should any of these things come to pass.
Because waiting until the crisis occurs to consider potential options is never a good idea.
