Business Strategy in 2021 & the rise of Recovery Strategy
Over the last 12 months, strategic planning, and its importance has substantially changed…and in many ways substantially more recognized as a fundamental activity for business success and sustainability.
With the unpredictability of trade, it is pretty obvious why as well…most strategic objectives are being thrown out the door entirely…or at the very least, delayed by a couple of years.
When re-baselining or defining your organizational strategy and its objectives/initiatives it is important to actually consider the phase of your business (startup, growth, mature, decline), thus informing the type of strategy that needs to be developed. It is also important to make sure that it is factoring in the challenges in the Australian (and broader global community) landscape…as each strategy has an overall different flavour, balance, and delivery approach.
Our team historically has developed strategies within each one of these broad categories, however, that strategic activity has changed.
The Rise of the Recovery Strategy.
Now until a few weeks ago at least, the general economy was well underway towards recovery, unemployment rates have substantially improved and overall response to COVID-19 has been extremely strong. Australia is currently reporting 4.9% unemployment…which is a 2.5% improvement to this time last year.
With this type of economic recovery, and overall performance in comparison to the remainder of the globe, businesses have taken re-opened and have not completely addressed the short-term and long-term impacts of the last 12 months.
Until the current Delta variant explosion across NSW, there was also an increasing sentiment that our economic recovery from COVID-19 was “here to stay”. Which, when considering the ongoing unpredictability of COVID-19, the associated lockdowns, and the general impacts to businesses’ capacity to trade effectively, is a huge assumption, proving to be incorrect.
It is now increasingly important for almost all businesses in any lifecycle phase to have a strategic plan that addresses recovery elements, or, dependent on your industry is a standalone recovery strategy.
Prior to now, recovery strategies could sit within a business that is in the decline phase of its lifecycle, as it would address how to renew and reform itself back into a mature business. However, this is not the case anymore.
So what is a Recovery Strategy? and how can it help?
- Business Continuity Planning
- Re-baselining existing strategies against the current landscape in which you operate
Further to this, it is also important for business strategies and recovery activities to incorporate a level of agility and flexibility. Our current trading landscape dictates it, so let’s ensure our expectations and strategies adopt it as well.
At a high level, there are four key steps to undertake a recovery strategy and integrate the results into your operations and forecasts for the future. These are illustrated below:
There is a wealth of documentation across many forums to support and guide you through what is required for business continuity and recovery, and in addition to this, many organisations out there (including Cirrus) can help with assessing your business performance and guide you through the recovery journey…in many a circumstance, it is at little cost to you.
In undertaking this activity, you (as the owner, leader or management) will understand where your business performance has changed, plateaued or/and declined over the last 12 months due to COVID-19 (and other factors), and give you core understanding for where the pressure points within your business sit.
Further to this, this activity will give you an ongoing platform to re-assess your business and its performance at more frequent intervals, to more appropriately manage and maintain a level of sustainable performance and recovery activity during this unpredictable time.
Conclusion
It is quite common, particularly as soon as lockdowns are continually imposed, and then lifted to just get straight back down to business without looking at what you are doing, and revisiting how the business is performing and responding to the current operating environment.
The last 12 months into 2021 have made 99% of strategies that exist in companies redundant, and it would be safe to say that all strategies did not contain enough consideration about what “recovery” means and how it needs to be done in the current climate.
Even growing and mature companies have suffered and require an element of recovery and a re-adjustment in how they operate.
With the broad business environment over the last 18 months, it is highly important to take pause…and determine if what you are doing is directed towards what could be an entirely redefined future operating environment, or at the very least enable your business, its strategies, and its operations to continually address the unpredictable trading environment and be agile in your recovery approaches.
Don’t underestimate the importance of undertaking recovery strategy planning. Your business is your livelihood, so ensure its ongoing success and sustainability.