But how we make strategy has to change, he argues. Now, when there’s a big strategic decision to be made, there’s no time for lengthy analysis, for two reasons. First: you don’t really know what the right choice will be (gulp!). Second: even if you do make the right choice, it has a much shorter lifespan.
“So strategy shifts from what position you’re taking to ‘How can we continuously renew?’” Early signal detection becomes a competitive advantage. He advises companies to enter earlier, scale faster, and exit slower, and to “manage for temporary”. He is also a passionate advocator for experimentation. “Exploration becomes as important as execution.”
He suggests trying small experiments, such as keeping the door to your office open for a month to see if it changes the culture. Or if you’re a salesperson, try answering a phone call on the first ring and see how that affects the relationship. “This way you can collect the data instead of having to convince people with theories,” he says.
Experimentation is a form of play, which shouldn’t be seen as a lower-level activity just because it’s not “serious”, he insists. “People are attracted to fun activities.” So try things out, and learn from the results.
It’s also vital for organisations to have the right capabilities for growth and adaptability. Think modular: “You can’t customise everything for every crisis. Instead, develop reusable building blocks – data infrastructure, supplier networks, digital platforms, decision processes – that can be deployed across multiple fronts.”