The one outstanding characteristic of the modern world is the fact that things changes quickly, unexpectedly and that such changes can easily bring about vast changes in the way business is conducted. It is therefore in the interest of all organizations to be aware of changes that are likely to occur. Strategic insight allows companies to react in time and to take advantage of changes within their operating environments.
In this fast changing world businesses need to have policies and procedures in place that will deal with changes and that will enable the organization to take advantage of such changes. Strategies are broad plans that simply identify likely changes and that directs business units to adapt their methods and tactics. Strategies therefore focus upon macro issues rather than micro consequences of such changes.
The problem faced by most organizations is the enormous pace of change. In addition, many changes simply cannot be foreseen but it is still necessary to devise long range plans that will enable to organization to survive and to thrive. For example, regional conflict that has a decided impact upon the financial markets is almost impossible to predict. Yet, businesses must remain ready to react the very moment that change occurs.
It would be of no value to an organization to study change without making plans to take advantage of those changes. That is why it is so important to analyze anticipated changes in terms of the impact it will have on the business. The environments that are crucial include the financial, political, technological and social environments. Plans need to be devised to take advantage of changes in those arenas.
The one area in which larger businesses fail is to honestly identify their own strengths and weaknesses. It is often deemed unseemly to admit to weaknesses but unless they are listed and acknowledged it is impossible to do something about the matter. Naturally, such deliberations need to be confidential in order to prevent competitors to take advantage of weaknesses admitted and documented.
Long term projections are all good and well, but they are useless unless they are translated into detailed action plans. In most cases a top down approach is followed. This means that broad aims are communicated to business units and that those business units then translate them into specific plans. The plans are then translated into very specific objectives by small teams.
Without a strategy to make provision for environmental changes no business can hope to survive in the long term. It requires specialist knowledge to correctly interpret trends but money spent in this way inevitably allows organizations to thrive. This is because they are made ready to embrace change and to use it to their own advantage. However, strategies need to be as realistic as possible and they need to be based upon as many facts as possible.
Strategic insight is the product of careful studies of the trends in the various environments that affect every business, individual and organization. If a trend can be predicted, plans can be made to take advantage of those changes. Unanticipated changes can easily lead to disaster because the company will not be ready to react quickly enough.
In this fast changing world businesses need to have policies and procedures in place that will deal with changes and that will enable the organization to take advantage of such changes. Strategies are broad plans that simply identify likely changes and that directs business units to adapt their methods and tactics. Strategies therefore focus upon macro issues rather than micro consequences of such changes.
The problem faced by most organizations is the enormous pace of change. In addition, many changes simply cannot be foreseen but it is still necessary to devise long range plans that will enable to organization to survive and to thrive. For example, regional conflict that has a decided impact upon the financial markets is almost impossible to predict. Yet, businesses must remain ready to react the very moment that change occurs.
It would be of no value to an organization to study change without making plans to take advantage of those changes. That is why it is so important to analyze anticipated changes in terms of the impact it will have on the business. The environments that are crucial include the financial, political, technological and social environments. Plans need to be devised to take advantage of changes in those arenas.
The one area in which larger businesses fail is to honestly identify their own strengths and weaknesses. It is often deemed unseemly to admit to weaknesses but unless they are listed and acknowledged it is impossible to do something about the matter. Naturally, such deliberations need to be confidential in order to prevent competitors to take advantage of weaknesses admitted and documented.
Long term projections are all good and well, but they are useless unless they are translated into detailed action plans. In most cases a top down approach is followed. This means that broad aims are communicated to business units and that those business units then translate them into specific plans. The plans are then translated into very specific objectives by small teams.
Without a strategy to make provision for environmental changes no business can hope to survive in the long term. It requires specialist knowledge to correctly interpret trends but money spent in this way inevitably allows organizations to thrive. This is because they are made ready to embrace change and to use it to their own advantage. However, strategies need to be as realistic as possible and they need to be based upon as many facts as possible.
Strategic insight is the product of careful studies of the trends in the various environments that affect every business, individual and organization. If a trend can be predicted, plans can be made to take advantage of those changes. Unanticipated changes can easily lead to disaster because the company will not be ready to react quickly enough.
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