- You've probably gotten the sense that the pace of change
in the new digital world is faster than ever.
That's true, and it will only get faster.
How does planning work under those circumstances?
Does a three or ten year plan that some
companies prefer still apply?
Does it mean the plans should be
investigated more frequently?
The answer is both.
Let me explain.
It's true that shorter strategic
planning cycles are necessary.
For instance, the plan you set a year ago might be
partially moot if, for example, the technology or processes
that are being implemented as a result of the strategy
are rendered obsolete by new technologies or processes.
There are four steps that I would advise undertaking.
Investigate the art of the possible regarding
innovative new technologies.
Work with customers to develop new plans on how
digital technology will enhance customer experience.
Identify outgrowths of the current strategic plan.
And finally, refresh your plans frequently.
Let's take those in order.
As with any new, innovative strategies, some aspects
of the planning process should be focused on
the art of the possible.
By this I mean that it's important to have members
of your team investigate how new technologies
might impact your company.
You could establish task forces to answer
the following questions.
How will artificial intelligence impact your company?
How will intelligent personal assistants impact
customer experience and use of your products or services?
How will virtual reality impact how products are tested?
How will Blockchain impact transactions
and information dissemination?
This is a partial list of new technologies that
are probably already impacting your business in some way.
It's important to have this level of experimentation
to go from the theoretical to the practical, to the
actual application of these technologies
in your environment.
One organization that does this well is the
65 billion dollar revenue,
home improvement retailer, Lowe's, which has set up
a world class innovation lab to understand how
new technology may play a role in the future lives
of customers and employees.
To explore the art of the possible, Lowe's Innovation Lab
has adopted a narrative driven innovation method.
The head of the lab, Kyle Nel, literally creates stories
and turns them into comic books highlighting
visions of the future.
This approach has led to everything from in store robotic
associates and augmented reality apps to develop
exoskeletons for warehouse employees, and a 3D printer
on the International Space Station.
Next, it's important to work with customers as
a source of strategic inspiration.
Meet with key, trusted customers in their environment,
or in the field, however that might be to find.
Where possible, gather customers together, either at
customer events that you already have planned,
or in focus group style sessions.
There are two goals of these sessions.
First, you should share insights from the art
of the possible brainstorming sessions, while sharing
aspects of the burgeoning strategic imperatives.
Second, get suggestions from them.
Ask questions about their impressions of your product
or service offering.
Ask them what products or services they would
hope to have through your company.
Ask them about products or services in adjacent spaces
to your own to gauge whether you ought to acquire
some of those companies, or attempt to compete
with them head on.
The first two steps should feed the third step,
which is to identify modifications to your existing plans
as a result of the art of the possible sessions,
and the feedback from the customers.
At Lowe's the idea for the in store robotic associate
came out of the art of the possible sessions,
but they were made better through
the feedback from customers.
These insights are not likely to require you to
throw out the existing strategy, but at a minimum,
it should cause a rethink to aspects of it.
In fact, customer feedback may lead to a new avenue
for the art of the possible sessions, perhaps pointing
you and your team to investigate how a new technology
can bring to life an opportunity that one,
or multiple customers articulate.
None of this suggests long term strategic planning
is not still relevant.
It remains critical to have a long term vision as well.
The short term plans should inform and lead to changes in
the long term plans.
As each year ends, a new perspective on the new year three
should be developed.
This highlights the need for a regular refresh cycle
to strategic planning.
In the past, the annual cycle was probably sufficient.
If the art of the possible sessions and customer sessions
are happening on a monthly, or quarterly basis,
the refresh cycles should parallel those.
Strategic planning does not go away in the digital age.
In fact, it's more important than ever.
The key is to do it with a cadence that is appropriate
given the pace of change.
One of my favorite quotes comes from the management guru
and author, Gary Hamel, who said,
"Companies fail to create the future not because they
fail to predict it, but because they fail to imagine it.
It is creativity and curiosity they lack, not perspicuity.
Experimentation, together with solid strategic planning
is the winning recipe.