Emerging from the pandemic and into a recession – the perfect time to revisit business strategy
Battle-tested and running on fumes, many organisations today have survived the past few years operating with significant uncertainty after major changes to how we live, work and play. Some organisations took the opportunity to scale back operations and focus on their core offering to outlast the pandemic (either by choice or by necessity). Others were fortunate to experience exponential growth as consumers changed their behaviours in response to significant lifestyle changes (sweatpants, anyone?). Another group pivoted their business processes and ultimately changed the way they operate to provide goods and services for their customers. However, there’s no doubt that as the ‘new normal’ emerges, each of us are still feeling the effects (for better or worse). In 2023, businesses now face an additional challenge – a global recession.
Rather than continuing to operate in ‘survival mode’ to wait out the recession or continue business as ‘normal’ without a clear path forward, today presents the perfect opportunity for business leaders to revisit their business strategy. This will allow your organisation to plan how the company will get back to growth (or accelerate growth), proactively identify threats or seize new opportunities, reassess company targets and to give their employees much needed optimism as we stare down another year of turbulence (especially as success during the pandemic does not equate to success during a recession).
To begin, business leaders should ask themselves the following questions to determine if a business strategy revisit is needed:
Does our mission and vision still inspire?
Does my organisation have a clear aspiration to win?
Does our offering still meet our customers' needs? Are the needs of my customers the same as they were before the pandemic and recession?
Are my strategic intents valid for today’s market conditions?
Are we still progressing on our business outcomes?
Do my initiatives clearly support my strategic intent and filter down through the organisation?
If the answer to any of the above questions is a ‘no’, then leaders should consider exploring what opportunities might exist for your organisation to become stronger and more successful in 2023. However, be mindful of the following pitfalls when developing your strategy (noting this is not an exhaustive list!):
Taking on too much too quickly. Your employees need a sustainable path forward that gives them optimism about the future – not an unmanageable workload. This is particularly true for companies that have become lean throughout the pandemic to survive. Adding additional workload onto employees while they are keeping their head above water is a risky move, potentially leading to a worsening skills shortage and a silent ‘resistance’ to adopt and drive the strategy.
Not prioritising the basics. It’s very easy to be drawn to new innovative trends that could potentially leapfrog your company ahead of your competitors. However, if your processes are inefficient and your technology is outdated, then perhaps it might be a better option to initially focus on getting the foundations right before pursuing new ventures. This will ultimately drive down your costs giving you more flexibility with projects later.
Having multiple departmental strategies, with no consolidated view of how each strategy contributes to the overall business outcomes. Bringing together senior leaders within an organisation is no easy feat, especially when the day-to-day demands for their time are greater than ever. However, it is crucial for business leaders to carve out time together to connect and discuss how the organisation should move forward as a single entity, to ensure alignment and drive support for the overall strategic direction of the company. This will also prove beneficial when communicating the business strategy to the broader organisation, as employees will be able to see the broader picture and how their contributions will drive success within the company. Our recommendation to bring together senior leaders is to schedule a multi-day off-site workshop, away from distractions where the focus can be on creating the path forward for the organisation.
Not sufficiently investing, leading to uninspiring strategy and unsuccessful delivery. Regardless of whether a company decides to significantly pivot the direction of their strategy or only make small changes, business leaders should recognise the crucial investment needed to develop and deliver the strategy. Investment will be in the form of money, time, and effort alongside an acceptance of a certain level of risk. Acknowledging the difficulty over the past few years, if funds are still short for the organisation, then strategy should articulate how additional funds will be acquired and when other value adding activities can begin.
By revisiting business strategy to ensure it’s fit-for-purpose as we enter another year of ambiguity, businesses can paint a positive future for their organisation that articulates how their company will recover and grow in the years to come, while also setting realistic targets that is responsive to the current environment at hand. For those who remain unconvinced that the time is now to revisit your business strategy, be wary of the opportunity costs of continuing the status quo - especially if your competitors seize the opportunity of recession.
If you’re looking to refresh your business strategy and would like to chat about how best to go about it, reach out to one of our friendly strategy experts today:
Cassie-Lee Osborne, cassie-lee.osborne@enfusegroup.com
Anthony Collett, anthony.collett@enfusegroup.com
