Strategy

A good strategy almost always involves innovation. When implementing a modern strategy, there is a great deal of innovation required along the journey of executing the strategy to actually achieve the strategy’s goal (for example: doubling revenue or global dominance). It all sounds abstract, and it is, so let’s make it concrete. Just think of an internet platform like Facebook. If this company were to adopt a new strategy, you know that this would lead to dozens, if not hundreds, of adjustments and innovations for the platform and the website. Innovations are then the solutions that haven’t been thought of yet. How different, by the way, innovation used to be. Back then, you came up with a product or a service, and you also immediately figured out how that product or service would come about. From A to Z, it was a well-thought-out process.These days, it’s all about trial and error. Does that apply to strategies as well? In any case, when it comes to (new) business development—often the most adventurous aspect of a strategy—failure has become acceptable. That is, if failure means you can use that setback as a springboard to move forward. Because when it comes to strategies, the times are unforgiving. Organizations that lack a sound strategy and corresponding plan risk being quickly overtaken by competitors, old or new. There must be room for experimentation in this era, which is socially brimming with innovation. But time is always limited—especially since competitors are also feverishly trying to innovate. The goal these days is almost always to achieve a digital transformation or a digital transition.

Disruptive innovation

Due to the rise of digitalization, strategies sometimes evolve into concepts so radically different that they have the potential to disrupt entire sectors. This is called disruption, serving as the starting point for changing value chains. Disruptive innovations are increasingly forcing companies to increase and then maintain their agility. Agile organizations respond more easily and quickly to trends and developments in the market. It is clear that digitalization is almost always at the core of a new strategy. Whether it involves the use of GenAI or cloud computing, which has given remote work a massive boost since COVID-19 and changed offices and HR processes forever.

Mission and vision

Moreover, consumers increasingly expect companies and other organizations to have a compelling narrative: one that addresses the environment, climate, international stakeholders, and their own employees. Focusing on social impact is the overarching theme, as Management Scope has also identified it as a key theme alongside diversity. Impact often boils down to sustainability, but socially acceptable policies—the so-called “S” in ESG (environmental, social, and governance)—are becoming an increasingly important focus for organizations.