Now that we’re halfway through the year (where has that time gone?!) I wanted to take some time to reflect on the past six months; conversations I’ve had at events, with prospects and customers, and look at the general state of strategy. I also recently wrote about how strategy has evolved which, combined with my reflections of late, brought me to this point.
Last year, this year, and most likely the next few years, have been (to put it lightly) tumultuous. The world around us is constantly changing, and in business we’re always needing to adapt. That said, it’s difficult to adapt when every few days something new happens and you’re having to flip-flop on plans that have been agreed some time ago.
So, I felt it prudent to discuss strategic considerations for 2026. Without further ado, let’s get into it!
Agility, adaptability, and “always on”
I briefly touched on this in my other article, around how companies now are needing to continuously research for new information that could impact their strategy.
To keep this brief, strategy now requires agility and flexibility to be successful. Instead of the 3-5 year plans we used to see, organizations are now moving to shorter, rolling strategy cycles, scenario-based thinking, and expect constant reprioritization.
However, there are some exceptions depending on the type of strategy and industry. Some strategies will always need to be long range, especially for organizations where significant capital investment is a staple – but even then, we’re seeing that the thinking (and approach) towards these strategies is evolving.
Strategy as an operating system
For too long, there has been a contrast between process-driven operations – standard work covering most operational scenarios – and the more ad-hoc nature of strategy. However, things are changing.
Strategy is often viewed as a standalone activity, with many writing elaborate plans that neither materialize nor become apparent in other business initiatives. But increased attention and agility are leading strategies to become more like an operating system.
Understanding strategy as an operating system means treating it like a methodology that moves you from a static to a dynamic process. It supports in building the links between planning, execution, and outcomes, and reduces the reliance on fragmented ways of working. Being process-driven in strategy enables organizations to be strategic throughout the entire year (or less if you work in shorter cycles).
I’m now seeing strategic operations being embedded into monthly and quarterly cycles, with leaders looking to drive better decision-making sooner rather than later. Business systems are now being designed to include run, improve, and change themes.
Data driven strategy & real-time decision-making
No conversation around strategy would be right without mentioning data. We’re now living in a world where data is seen as currency, and it’s a pretty noisy data-filled world out there. It’s also worth mentioning something else that frequently appears in conversations around data… AI.
There is so much data available to strategy leaders and management teams, but the pressure comes in when determining the accuracy of data. The priority now is real-time data that shows how well the organization is performing in relation to the market, customers, and competitors. Now, with widespread use of AI, it is easier to rapidly process large volumes of data and extract patterns and insights. Simply put, AI is a great way to reduce how long it takes to get good data and bring insights to the forefront – enabling organizations to quickly address issues and make decisions.
Of course, the conversation around AI is highly nuanced. AI does make mistakes (we’ve all experienced an AI hallucination at least once!) and can present bias (depending on its training). But, it’s hard to deny that AI has brought positive change to the world of strategy thanks to its efficiency with data and bringing additional insights, that would have otherwise gone unnoticed, into consideration.
Ecosystems over standalone advantage
Strategy now goes beyond the organization that owns it. It’s no longer enough to only focus on one part of the puzzle, instead you should be looking at the entire value chain to make optimizations and realize benefits. Ask yourself:
- Who are we collaborating with?
- What skills and capabilities do we need?
- Where can we find additional skills and capabilities?
You’re sitting on a whole new world of data here – the answers to these questions should cause you to look at your partnerships with your suppliers, customers, and potentially your competitors. This additional insight can inform strategy and help you see the connections throughout the entire value chain.
Strategy now is just as much “who do we need to win with?” as it is “how do we win?”. Having a stable way of working with strategy can extend into strategic partnerships where expectations and shared goals also drive organizational outcomes.
Digitalization
We’ve certainly seen an uptick in the digitalization of organizational strategy in the past decade, which is now changing once again thanks to widespread adoption of AI. Some companies have been slower, or more reluctant, to bake AI into internal infrastructure, with others noting effects such as:
- Leveraging competitive advantage: Finding advantages in how the organization adds value internally and to customers through new-found efficiencies
- Defending against disruption: Understanding the level of risk and disruption to the market – and being able to respond appropriately. This can also extend to security for organizations including data and intellectual property (IP)
- Assessing capability: Using AI to support skills gaps and how to leverage this to drive outcomes
Strategy now has an implicit “AI layer”. Organizations are also increasingly evaluating to what degree AI its capabilities should play a role in the strategic process itself, with many customizing models to improve accuracy in outputs.
What next?
Strategy is evolving to be more interconnected, continuous, and adaptable. It is less linear than the strategies we used to implement thanks to the level of unpredictability of external factors we’re now facing.
There has been a shift from optimizing stable systems, to orchestrating a strategy operating system that is much more complex and adaptive. Resilience, speed, and ecosystem positioning matter just as much as scale. Organizations that succeed aren’t necessarily the ones that have the most detailed strategy plans, but rather the ones that connect all parts of strategy, from planning through to execution.
