Strategic Drift is defined as: A subtle and unnecessary shift from an intended course or direction to another one – one that is usually undesirable, at least in a long-term perspective. Of course we recognize that in some situations shifting may be necessary, but over time and with too many shifts, companies naturally lose focus and become more reactionary, negatively impacting long-term success. The real problem in veering into a strategic drift becomes apparent when you observe senior executives that start to believe minor turbulence is equal to a major hang in the market place.
For example: A temporary loss of market share, but the market is showing there is no long-term cause for alarm. A slower than expected growth at the launch of a new product or the entrance of new competitor, but revenue is still growing. You MUST have the CERTAINTY to know when you should and should NOT make adjustments and these decisions should be made ONLY after the data shows the change is critical. If not, you too may fall victim to strategic drift. What Call of Action Do You Take? 1 .
Justifiability, a NECESSARY call to change should be invoked when your go-to- market strategy is in danger or compromised from actions outside of your control which can be measured as catastrophic. 2. On the other hand, it will be crucial NOT to abandon your entire go-to-market strategy, unless those decisions made with the right evidence or data to support the adjustments in people, money and technology resources. The Negative Operational Effects of Strategic Drift are Apparent Strategic drift causes a loss of momentum, escalates unnecessary costs, diverts focus ND sacrifices competitive advantage.
Impacts are: Employee morale is damaged due to psychological repercussions from the constant shifting and changing of long-term impact to the organization, often resulting in creating a reactionary state of mind, and making team members numb to a constant state of alert. Change is no longer seen as strategic but rather ‘change for change sake. ‘ Executives become skeptical as the only certainty are the forthcoming uncertainties. This state of mind is arguably justified.
Why invest resources and time for one concerted plan when the chance of drifting is the only thing that is definite? The motive to argue and actually fight for staying in one direction is diminished over time. These actions start to develop a culture of chaos and fire fighting. What Can an Organization do to Prevent Strategic Drift? T, start Witt creating a culture that is not only openly tolerant tot t back (boot positive and negative) but welcomes it. 2. Make sure the organization can both a. Embrace change when necessary, and b.
NOT hesitate to question it when is seems unnecessary. 3. Clarify C-suite leadership responsibilities and execute within a formal senior decision-making model. Many unwanted surprises are nothing more than tactical or operational challenges that should be handled within individual business functions and cross-functional leadership team. 4. Senior executives who align their individual ROI with the long-term success of the organization will be able to quickly identify the nature of the incoming challenge as well as create contingencies to combat it when and if it occurs.
This way, the organization continues along its intended direction without unnecessarily deviating. 5. Finally, the best way to combat strategic drift is to have a Grand Strategy. A comprehensive set of corporate strategies that are designed to be durable and flexible, tailored to the strengths of the senior decision-makers and organization. In Summary As we head into the SQ/PAYOFF take the time to visit your strategic work and make sure you are poised for success. Learn how to navigate these muddy waters to success.
