MARCH 2021 / NO. 2
TAGS: CORONA, CRISIS, COMPETITIVE, MANAGEMENT, BUSINESS MODEL, PARTNERSHIPS, CONTACTLESS, REMOTE, DIGITAL, HEINEKEN, ING BANK, ABNAMRO BANK, DEUTSCHE BANK, VOLKSWAGEN, DAIMLER, NOKIA
Will your company have Strategic Intelligence processes in-place after Covid?
“Every organization needs improved “strategic resilience” at the end of the Covid-19 Crisis”
“Strategic resilience means to which extent an organization’s business model and competitive position prove to be resistant to disruption”
Over 40 percent of companies that face the Corona-crisis has weakened their competitive position. Just 30 percent have increased their competitive edge by business-model innovation. Unfortunately, management doesn’t have an extensive toolbox available to strengthen the company’s competitive position. The key problem is that the vast majority of companies don’t have a Strategic Competitive Intelligence Capability in place to gain maximum success from business-model innovation. The added value and power of Strategic Competitive Intelligence is heavily under-estimated in the majority of organizations.
Five areas to improve business-model innovation
New digital experiences with products and services(1). New partnerships, both within and outside the sectors of industry(2). Supply chain and operating-model adjustments to manage risk(3). Sales model changes: contactless, remote or digital(4). Faster product and services development through more rapid iteration(5).
We also see cost cutting and workforce reductions at numerous companies such as Heineken, ING Bank, ABNAmro Bank, Deutsche Bank, Volkswagen, Daimler, Nokia and so many more. Cost cutting is the easy thing to do because it’s about costs and not revenues. However, increasing revenues should be the ultimate objective of senior management.
Four ways to strengthen your competitive position
The strategic planning process should become more flexible to deal with new and high levels of uncertainty. Set bold aspirations(1). Develop scenarios, not forecasts(2). Create a hedged portfolio of big moves as your competitors are often paralyzed by uncertainty(3) and adapt your strategy dynamically(4). This means that management is well prepared including a ‘business-continuity plan’ and an ‘incident response team’ in the years to come. Pre-conditions to execute this is a deep understanding of the sectors of industries and its context and thinking about strategy as part of every boardmeeting rather than something that happens once a year or every 2-3 years.
The result is that when a crisis hits your company you have the organizationbal strucuture, processes and people in place. So your company is better prepared for the uncertainties to come. In addition to a wide variety of tools & techniques we teach in our International Master Class, we have the unique Grey Swan Analysis and the Gray Rhino Analysis, which have proven to be perfect new structured analysis tools to manage future uncertainties.
“In 2018 we recommended the board of an European top-10 to appoint a “Vice President of Future Disasters”. They did, together with establishing a Corporate Radar Room. The company is leading in Strategic Resilience.”
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