From this week’s article, “Should You Build Strategy Like You Build Software”, I agree that instead of taking predictive approaches, organization should follow the Adaptive approach to develop strategy.
For an organization to be successful in today’s fast changing economy, they have to review and make changes to their strategy on a regular basis. A review of the strategy once a year might not be enough anymore. The Spiral model for strategy development is a good approach to follow.
The advantage of an adaptive approach to develop strategy is that, it gives the organization flexibility. After setting a strategy and six months down the line if the strategy does not fit the organization anymore due to changes in the environment and industry, then an adaptive approach provides flexibility for the organization to change their strategy and continue to be successful.
This kind of approach also provides the organization the power to be ready for a change if needed. Since the organization keeps reviewing their strategy constantly they would to an extent be able to predict where the industry is headed in the future. Hence when it comes time for a change, the organization can be ready for it and will not be caught unawares.
Hence in my opinion, an adaptive approach to strategy development is the right approach. Do you think it is possible to be successful in today’s fast paced economy with a predictive approach?