Agile Business Ownership and the premise of Strategic Planning

Strategic planning is a continuous managerial process that seeks to shape the destiny of an organization, based on the definition and documentation of strategic objectives. Practiced for decades by many companies, this process traditionally involves scenario analysis and the formulation of action plans to achieve corporate goals. However, in a context increasingly characterized by volatility, uncertainty, complexity, and ambiguity (VUCA), along with digital transformation, it is crucial to question whether traditional strategic planning techniques are still valid and effective in addressing the challenges and opportunities present in today’s economy.

Often, the strategies developed by organizations end up being confined to tactical-operational level action plans, with an exclusive focus on achieving the outcome objectives deliberated by Corporate Governance. This limited approach can make strategies fragile and inadequate for dealing with rapid and unexpected changes in the business environment. By concentrating only on short-term goals and specific actions, companies may neglect the need for continuous adaptation and the capacity to innovate, essential elements for sustainability and growth in a VUCA and digital scenario. This fragility prevents organizations from developing a holistic and dynamic vision, crucial for navigating the complexities and uncertainties of the current market.

To overcome the limitations of traditional approaches, Agile Business Ownership proposes the 7th premise of its evolutionary practices:

(7) Strategic planning must structure the direction of corporate governance at different levels of business value perception.

This premise emphasizes that strategic planning should go beyond short-term financial and operational goals, integrating different dimensions of value that the company can generate for its various stakeholders. This includes considering aspects such as innovation, sustainability, organizational culture, and social impact. By aligning corporate governance with a comprehensive and multidimensional view of value, organizations can position themselves more resiliently and adaptively, responding effectively to the demands of a constantly changing business environment.

We recommend strategic planning oriented not only towards the conception of institutional statements and strategic drivers but also towards strategic design that structures the management of the program portfolio. This approach aims to maximize value generation at different levels of business abstraction. This means that planning must incorporate an integrated vision, where strategic initiatives are carefully aligned and managed to ensure that all actions cohesively and efficiently contribute to organizational goals. By strategically structuring the program portfolio, companies can optimize resources, prioritize initiatives with the highest potential impact, and ensure that all projects are aligned with the organization's vision and values, promoting a continuous cycle of added value and innovation.

However, this design for structuring the strategy demands much more analysis than planning itself. This is why we rely on the Business Analysis Body of Knowledge (BABOK/IIBA) to recommend the following activities in the organization's strategic planning:

• Analyze the Current State: The objective of this activity is to understand why an organization needs to change the way it operates, manages, and leads the business based on its performance with stakeholders.
• Define the Future State: The objective of this activity is to determine the future characteristics and conditions desired by leadership based on the needs and opportunities presented to the business.
• Evaluate the Risks: The objective of this activity is to understand the undesirable consequences of maintaining the organization's modus operandi and attempting to achieve the desired future state with the same capabilities as the current state.
• Define the Change Strategy: The objective of this activity is to propose new approaches to organizational change that can mitigate business risks in the short term (prosperity) and enable sustainable growth in the long term (perpetuity).
• Plan the Strategy Execution: The objective of this activity is to analyze (inter)dependencies, constraints, and essential resources for the effective execution of the strategy. Additionally, we establish regular cadence reviews of results (monthly, quarterly, and annually) for continuous inspection and adaptation of the strategy over time.

By adopting these recommended activities, organizations can ensure that their strategies are not only well-conceived but also continuously adjusted and aligned with the dynamic market realities, maximizing the value generated at all levels of business abstraction.

For strategic planning to be truly effective, it must occur cyclically, allowing constant reviews and adjustments in response to changes in the business environment. This continuous process requires the effective and collaborative participation of different corporate governance agents and those responsible for managing the portfolio of strategic programs. Through this collaboration, organizations can ensure that the company's strategic drivers are clearly understood and integrated at all levels, promoting a robust alignment between long-term vision and daily actions. Thus, strategic planning becomes a living and adaptable mechanism, capable of guiding the company with agility and precision towards its desired future, ensuring the maximization of value and sustainability in a volatile and digital economic scenario.

Some thought-provoking questions to conclude:

• Have you ever realized that many critical failure factors in the execution of organizational strategy are the result of weak structuring, which complicates communication and fails to engage those responsible in the process of organizational evolution?
• How can the integration of different dimensions of value, such as innovation, sustainability, and social impact, influence the resilience and adaptability of your strategic plan?
• What steps can your organization take to ensure that strategic planning goes beyond short-term goals and incorporates a holistic view of value for all stakeholders?
• In what ways can continuous, cyclical strategic planning improve the alignment between your company's long-term vision and daily operations?
• What challenges do you foresee in adopting a more adaptive and iterative approach to strategic planning, and how might you overcome them?
• How does your organization currently address the need for continuous adaptation and innovation within your strategic planning process?
• What role do you think effective collaboration between corporate governance agents and program managers plays in the success of your strategic initiatives?

Feel free to engage with these questions and share your insights or experiences in the comments below.