Monday, 21 November 2011

Sustainability should be weaved in all strategy options chosen

Companies/Organisations continually formulate or review their strategies to keep up the navigation imperative of all strategies. Some organisations are forced into strategising because of declining revenues which in most cases is the symptome of underlying problems, as opposed to strategising because they want the organisation to always be on top of its game and reinventing itself timely in any economic cycle. Their first, easier and short termism "strategy option" is staff reduction to mitigate the revenue decline. However staff reduction has unintended consequences such as making the company anorexic and thereby blunting its capacity for growing the business further than the immediate client/customer base and or current service/product offerings. We are seeing companies that were caught napping by the economic meltdown, stumble from strategy to strategy as they try to stabilze their companies and keep them as going concerns. This short-termism cannot be sustainable. What we find missing here is the sustainability imperative that every strategic choice taken must lead the organisation to. Sustainability has to be a long term view and once taken, everything being equal, companies must try at all costs to stay the course in pursuing the strategic choice. Companies stumbling from strategy to strategy needs to evaluate whether their strategies has infused in them elements qualifiable with sustainability beyong the short term.