The end of the year is coming closer. Usually this is the time to reflect on the year behind us and to anticipate the year ahead. The COVID-19 pandemic has made 2020 a challenging year with economies slowing down and negative growth rates. Fortunately, there are also signs of recovery with rising PMIs and positive growth projections for 2021.
Nevertheless, uncertainty remains and particularly in the current market place companies should keep on evaluating their businesses in order to adapt to shifting demand patterns and changing market environments.
However, how should we know what to anticipate?
Particularly in turbulent times, companies seem to struggle in keeping strategic focus or in determining the appropriate strategy.
This post is not so much about the importance of having a clear strategy. It is more about how strategic analysis could be of support to determine the right strategy and to be adaptive to change.
"A perfect journey only exists when all variables are rightly interpreted and utilized".
Strategic analysis is key to strategic decision making and often referred to as the process to analyse a company's internal and external environment and its ability to meet strategic objectives. It is a comprehensive process where all aspects of a business are looked at ultimately with the objective to provide data and insights that help to pursue the appropriate strategy.
To use sailing as a metaphor, one might know what direction to be heading, however a perfect journey only exists when all variables are rightly interpreted and utilized. Managing all variables in such a way that maximum performance can be reached will determine a journey to be successful or not.
The same holds for our business environment. The circumstances of a journey are always different than what might have been anticipated in the first place. In order to manage this good preparations and accurate planning are key to success.
Strategic analysis brings several benefits:
Despite these benefits, conducting strategic analysis does not always appear high on the agenda. A lack of time or experience are one of the reasons why firms do not always engage in this. However, focus on strategic analysis will pay off and eventually lead to better insights, decisions and results.
Feel free to contact me for further information.