Why strategic resilience is crucial to survival
Even before the current crisis, digital disruption has emerged as a key challenge for many businesses. But some industries have proved more resilient to wide-scale change than others. On the one hand, sectors such as retail banking the incumbents continue as normal; in others, such as photography, the traditional players are wiped out.
In general, the degree of creative destruction among traditional, longstanding corporations has been lower than might be expected. Of the current (2019) Fortune 500 companies, only 16 were established after 1994. Furthermore, contrary to popular belief, disruption happens slowly; disciplines such as digital imaging, have taken decades to develop. Another myth is that established firms struggle to adapt. Many larger companies are getting smarter, creating their own digital offerings, merging with competitors, or building flexible partnerships.
Changes in strategy-making in a world of radical uncertainty
Rather than developing and executing a detailed strategic plan, strategy-making is now about coping with the “fog of the future” – having the agility and flexibility to cope with changing circumstances. Good strategy-making involves a combination of the following disciplines: