Why strategy review is important

By Jonah Nyoni | Mar. 16, 2024

THE walk of a leader or manager must always be calculated so that the right move can be made for progress, productivity and profitability.

The leader is there to think and harvest the thoughts from people they work with. Leaders are there to make change.

Leaders are called to build, lead and champion transformation. That is possible using a good strategy and constant review is key as life is never constant. Today let us converse about a strategy review and why it is important.

Open and collective conversations

A great strategy is built around healthy and good corporate conversations. Most companies fail today because they lack openness. At times the problem within the organisation might have been seen by another employee. However, because there is no open communication, they are afraid to say it to the top leadership. Secondly, some leaders shoot down the employees’ ideas and as such the employee is discouraged to air his or her views. Does management really want to know the truth?

“Most failures in organisations start when top management advocates a new direction and begins to develop programmes for change without finding out what influential people in other parts of the organisation think of the new focus. They thereby set themselves up to be blind-sided by concerns that emerge much later” (Michael Beer and Russell A. Eisenstat, 2004)

Diagnostics

It is important in any strategic process to diagnose problems. These include the ones you want to solve and get value and the ones that are affecting you. Here is a simple 6-step process to get there:

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What are the goals and objectives?
What are the market threats and opportunities?
What is the value to propose?
What are the core deliverables on the value proposition?
What are the capabilities/ resources needed to implement the strategy?
What values should guide and create a desired culture?

This is a starting point and it helps the company diagnose, craft, implement and review its strategy. Leaders or managers are required to read on tools such as Porter’s five forces model, the strength, weaknesses, opportunities and threats analysis, the pestle analysis and Kurt Lewin's Force Field analysis. These are basic tools that a manager should know as they give a structured way of working, improving and reviewing any strategy.

Assessment of performance

With the use of the above tools, a strategic review allows companies to objectively and collectively evaluate their performance against predefined goals, dreams, objectives or aspirations.

By analysing key metrics and outcomes, businesses can identify areas of success and areas needing improvement. This assessment forms the basis for informed decision-making and helps prioritise future initiatives.

Identification of opportunities and risks

In general, conducting a strategic review enables companies to identify emerging opportunities in their industry and potential risks that could affect their operations. Remember, every leader and manager must always eye the next bounce of the ball. Change is coming and that is inevitable. So, the leader has to keep one foot on their strategy and one foot on change.

This keeps them and the company abreast of the times and relevant. Most leaders would ask me how that is possible; the answer is in learning agility, open conversations and a healthy feedback loop. Also, when you are always analysing market trends, competitor strategies and technological advancements, businesses can capitalise on new opportunities and mitigate potential threats, thus maintaining a competitive edge.

Resource allocation optimisation

Through a strategic review, organisations can assess their resource allocation practices and ensure alignment with their strategic objectives. By identifying areas of inefficiency or overinvestment, businesses can reallocate resources to initiatives that offer higher returns or better support their long-term goals. This optimisation enhances operational efficiency and maximises the utilisation of available resources.

Adaptation to changing environments

I recommend a book by John Kotter titled Accelerate. He writes about four things — efficiency, effectiveness, speed and agility. This dynamic works well in today's changing business landscape, adaptation is crucial for survival and growth. A strategic review provides organisations with the opportunity to reassess their strategies and make necessary adjustments in response to changing market conditions, regulatory requirements or technological disruptions. This flexibility enables businesses to stay agile and resilient in the face of uncertainty, ensuring long-term sustainability.

Parting point

Great leaders will or have mastered the importance, art and science of a strategic review process. It is a collective agenda. Change is coming and it is coming fast. Competition is unavoidable; the best way is to learn faster than your competitor. As such, a strategic review serves as a valuable tool for organisations to assess their performance, identify opportunities and risks, optimise resource allocation, and adapt to changing environments, thereby enhancing their competitiveness and ensuring long-term success.