Strategy for the future

Conventional strategy, data-driven and well-executed, is the backbone of a healthy business. It works with linear change, but as Vijay Govindarajan and Chris Trimble write in ‘The CEO’s role in business model reinvention’, sooner or later most industries go through dramatic shifts that threaten incumbents. Most companies, they say, “are befuddled by non-linear change”. Their advice for CEOs is to focus simultaneously on improving current performance (“preservation”), pruning obsolete businesses, products, services, policies, even mindsets (“destruction”) and preparing today for the long term (“creation”). That takes commitment, they say, and a separate, parallel strategy-making process that involves “non-traditional voices”.

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