Keeping Alert

In fact, no matter how solid your strategy, you must always be on the alert to make changes.

Strategy must adapt to new realities and to new forecasts: but exactly when should you make changes to your strategy? Should you do this at fixed, regular intervals or just when you deem it necessary?

In fact, no matter how solid your strategy, you must always be on the alert to make changes. Even if your strategy does not include seeking first-mover advantage, you must never be the last to realize that the world has changed while you have stood still.

The signals for change come from all around and are always out there -- within your organization, the actions of your customers and competitors and changes in the market, and the macroeconomic climate. Make sure that you and your team have a good knowledge of these indicators for change, and encourage your team to always be on the lookout for potential warning signs and any other changes to your business environment. Put in place mechanisms by which information about these signals can be captured, communicated, and discussed.

ACTION POINT: Know the indicators for change and build that mindset into your team.

Timing Strategic Change

always be alert to your changing environment to give yourself plenty of time to make changes

Avoid being pushed into a corner with limited options -- always be alert to your changing environment to give yourself plenty of time to make changes. The following guide posts can help identify if you are on track.

• Fast Track - Looking to surprise your competitors
• Off Track - Waiting to see what your competitors do before changing your strategy
• Fast Track - Looking to spot early signals that change might be needed
• Off Track - Leaving "changing strategy" on you long-term to-do list
• Fast Track - Thinking about your next strategic move when you are doing well
• Off Track - Taking success as a cue to rest on your laurels

ACTION POINT: Be aware of your market conditions and changing environment to stay on the fast track of strategic change.

Reacting to Events

In reality... the unexpected does happen...

In reality, despite the best intentions to plan for all eventualities, the unexpected does happen and you may need to devise a strategy quickly in reaction to changed circumstances. Without the benefit of time, your options for change are likely to be limited. You need to acknowledge these limits -- how much time you actually have -- and then work backwards to develop strategic options that fit the parameters.

First, quantify the urgency of the situation -- how long do you have to make the change? Next, identify the key issues you face and place them in order of priority. For example, in a small company you may identify that poor teamwork has ultimately led to shortfalls in performance; lower revenues and recent investment in new equipment have left you vulnerable to creditors; and you may even face bankruptcy. In this situation, a two-part strategic plan is necessary -- part one addresses the immediate threat by stemming the losses and improving cash flow, and part two deals with the working practices and personnel issues that caused the problem.

ACTION POINT: Acknowledge limits and quantify urgency when strategically planning for change.

Getting the Timing Right

So your relatively simple idea may take 18 months or more to execute

Big changes take time, so it is vital to consider timescales in your strategic planning. For example, you may decide to merge with a competitor because they have good sales in territories that complement your own. Strategically this makes sense. However, it may take months of negotiation to agree the merger, another few months to conclude the legal and financial aspects of the deal, and even longer to merge the systems and staff of the two organizations.

So your relatively simple idea may take 18 months or more to execute -- great if you have that amount of time available, but if your need is to generate additional sales in the current financial year you will need to look for an alternative approach

ACTION POINT: Understand the time required to execute big changes.

Knowing when to Change

The key is to always remain flexible: although strategy is about the future, the time to act may be now.

Time is a critical factor in making strategic decisions. When should you make strategic changes, and how is your strategy influenced by the time you have available? The key is to always remain flexible: although strategy is about the future, the time to act may be now.

Many teams and organizations review their strategy only when things are going wrong -- if all's well, why change? This is false logic: in fact, the best time to plan for change is precisely when you morale, time, profits, and momentum on your side. Strategic change might mean making a large investment, relocating a business, merging with a competitor, taking on new staff, or engaging with new markets.

ACTION POINT: Consider change when you have morale, time, profits and momentum on your side.