"Intelligent" Strategic Flexibility

"Things alter for the worse spontaneously, if theyone who gets there first.
be not altered for the better designedly". ThatRace day arrives and your neighbor is off and
quote from Thomas Bacon was uttered backrunning. He is gone out of site before you have
around the year 1600, but it is as good advicegone a mile. Oh, by the way, I forgot to mention
today as it was back then. In fact, given the ratethat he is driving a Porsche, and you are driving a
of change today, I would argue that it is evenminivan. Things don't look too good eh?
more relevant!Well, 500 miles later, you are sitting there, having
You know that things will change. You know yourdinner at Fisherman's Wharf in San Francisco
market will always be in flux, with new companieswhen he comes flying down the road, just getting
entering it, new products and services appearing,into town. It would probably be nice if you bought
new customers, new regulations, new technology,him a nice glass of wine with your million dollar
companies going out of business, and on, and on,prize.
and on. Change will happen.How in the world, you are saying, did I beat the
So, it begs the question - why plan if there isPorsche? The answer is really quite simple, you
going to be so much change?planned your trip. You took the time to go to
Indeed, in his book The Strategy Paradox, MichaelAAA or Google Driving Directions to map out
Raynor notes that managers must make choicesyour route. You found out in advance where the
with far-reaching consequences today, but mustdetours where, and where traffic was likely to be
base those choices on assumptions about abacked up (if you have driven anywhere in
future they cannot predict. If the future does notCalifornia, there are plenty of those spots!).
turn out as expected, these strategies can failYou know what else you did, you had one of
horribly.those fancy new Global Positioning Satellite
It is quite difficult to accurately predict what thedevices in your car so that it was near impossible
future will hold, and the further out you try toto get lost. Oh, by the way, your GPS was the
predict, the less accurate you will be. Think aboutreally neat kind that gave you real-time updates
the weather forecast. How often have you reliedon traffic conditions and construction delays - in
on the local weather forecast to plan someother words, you had a great strategy and
important activity, and then gotten rained out.intelligent flexibility.
Strategic Planning is, no matter how you "dress itAs I mentioned earlier, one of the greatest
up", a guessing game. By being very rigorous inbenefits of doing strategic planning is the incredible
your planning, you can stack the odds that youramount of information you gather in the process.
guesses will be right, or at least right enough. And,That information will allow you to be very
even more critically, the process that you gosensitive to changes in your market, and to react
through to create your plans will yield tremendousto them in a way that ensures your continued
information and insights into your markets, yourprofitability. That information will enable you to
competitors, and your own company.cope with the fickle demands of customers and
These insights are perhaps the best reason thatthe free-ranging attacks of the competition.
going through the process of creating a strategicPrepare to take advantage of a world
plan is well worth the effort. As an example,interconnected in ways not yet understood; of
suppose you were going to get in a road racehuge quantities of money searching for profitable
with your neighbor. The race was going to takeideas; of a world where people are increasingly
you from San Diego, California to San Francisco,ready to pay to save time, and a world where
California, a distance of about 500 miles. Supposechange occurs with marvelous regularity. Prepare
further that there is a $1,000,000.00 prize for thewith great plans, and greater knowledge.