Strategy development in volatile business environments
Categories: Business Risk
, Business Strategy
, Competitive Advantage
Strategy development requires flexibility and intelligence, rigid plans leave business open to risk as Dr Manny Aparicio discusses in this TV show:
Strategy development and contingency planning
We want to run the business and run it consistently for efficiency, you know, build the plan, operate the plan and, while you always need a plan. The military, understanding, says, you know, the plan goes to hell in five minutes.
So you have a plan but you, it’s the exceptions again, the contingency planning, the options and, if you think about, most fundamentally how the military works, it’s called training.
It’s called training. It’s not just a rote.
It's not a particular process is followed hell or high water. It is learning and practicing, building experience, building automaticity into whatever we see, we’re ready.
We know how to deal with this situation if it changes that situation. So if you think about it, again, it’s training in the military or in general, when you’re doing planning and contingency planning.
It’s can you capture your experience in an organisation that covers all sorts of situations and, as new situations occur, is there a corporate memory that is learning about those situations, what actions were taken; given those actions, did it turn out well or not and using that corporate memory, again, not as a, you know, step 1, step 2, step 3 no matter what but this more flexible, adaptive approach to planning that is more situationally dependent and that’s the real phrase (situational dependency) on how you proceed and that’s what our brains do all the time. We’re not operating, stupidly, you know, over-committing to a process plan. We adapt when we need to, based on the situation as the situation changes.
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