Are you tired of sticking to the same old strategic plans? It is time to switch to a dynamic strategic plan that adapts to change and drives success.
In this article, we will explore what dynamic strategic planning is, the benefits of adopting it, and the process involved in creating one. As a Nigerian organisation, this article will provide a comprehensive overview of dynamic strategic planning and inform you on how pcl. can offer you its expertise to create a dynamic strategic plan, which will guide you in achieving your organisational goals.
The Nigerian Business Environment
Nigeria’s business environment constantly changes, with various factors impacting how companies operate, innovate, and compete. Rather than experiencing stable conditions, predictable competition, and gradual technological advancements, organisations are now navigating an environment of volatility, uncertainty, complexity, and ambiguity (VUCA).
Organisations face challenges ranging from low purchasing power, changing government policies, inadequate power supply, rise in oil prices, deficient infrastructure, foreign exchange scarcity, multiple taxation, etc. Even recently, we have seen companies such as Procter & Gamble, Unilever Nigeria (home care and skin cleansing division), GlaxoSmithKline, Bolt Food, and Sanofi exit the country because of the challenging business environment.
How do organisations thrive in this ever-changing and uncertain business environment in Nigeria?
For organisations to thrive in this harsh business environment, they need to have a well-crafted and executable strategy that can withstand the test of time and is flexible enough to adapt to the ever-changing business environment. Strategic planning is a crucial process that involves evaluating a business’s internal and external environment, setting future goals and targets, and outlining the strategies required to achieve them.
In the realm of strategic planning, there exist diverse methods, among which we have static planning and dynamic planning. It is important to note that dynamic planning is an emerging trend in the business landscape that is swiftly gaining momentum. According to the pcl. 2021 Strategic Preparedness Survey Report, 69% of business leaders conduct strategy reviews at least once in two years, while only 9.31% would conduct a study at the end of a five-year strategic period or never.
Organisations are recognising the benefits of having a dynamic business plan in a constantly evolving environment of uncertainties and innovations. An organisation in Nigeria realised the advantages of adopting a dynamic business plan in such a fluctuating business environment. Today, we can share its success story, highlighting the importance of adaptability, innovation, and a proactive mindset in a competitive business environment. Can you tell which Nigerian organisation this is?
Before diving into the success story of this organisation, it is important to understand the difference between Static and Dynamic Strategic Planning.
Understanding Static and Dynamic Strategic Planning
Static strategic planning is a type of business planning that is rigid and remains unchanged throughout the business’s operations. This planning method offers a blueprint or roadmap that guides the business’s strategic decisions and operations, outlining the necessary steps to achieve its goals. It is typically used when the business environment is stable and predictable, and the business objectives are clear and well-defined.
On the other hand, dynamic strategic planning is a type of business planning that places equal emphasis on strategy and flexibility. According to Daniel Burrus, this approach provides a relevant and practical roadmap to everyone in the organisation, which can be continually refined and improved. In dynamic strategic planning, the big picture is considered when creating a responsible and comprehensive plan for the upcoming year. It also involves revisiting the plan regularly (possibly quarterly or yearly) to ensure that the organisation is still on track to achieve its goals. This dynamic approach to strategic planning enables businesses to quickly adapt to changing circumstances, reduce operational risks, and capitalise on new opportunities.
What are the benefits of Dynamic Strategic Planning?
In a rapidly changing business environment such as Nigeria, a static approach to strategic planning can be limiting and ineffective, especially in the face of economic crises and technological advancements. Rather, dynamic strategic planning allows for more flexibility and adaptability when achieving organisational goals. This approach recognises that the environment in which an organisation operates is constantly changing, and plans must be revised, continually monitored, and evaluated to ensure that the plan stays relevant and effective.
Dynamic Business Planning ensures that the organisation’s goals and initiatives remain aligned with its mission and vision through regular reassessment. By continuously scanning the external environment and internal capabilities, organisations can build resilience to unforeseen challenges and disruptions, allowing faster recovery and adaptation.
It also helps organisations make proactive decisions, providing them with a competitive edge by continuously monitoring the business landscape. It emphasises staying attuned to customer needs and preferences through regular feedback and market analysis. Organisations, therefore, can respond promptly to emerging opportunities or threats, adjusting their strategies in real-time and encouraging a culture of innovation and continuous improvement.
What are the Steps of Dynamic Strategic Planning?
Creating a dynamic strategic plan involves the following vital steps to ensure the success of organisations in Nigeria as the business environment is rapidly changing and evolving.
1. Internal & External Analysis: The initial step is to analyse the internal and external environment of the organisation’s sector to identify emerging opportunities, threats, and trends. The organisation’s internal strengths and weaknesses are assessed, including its resources, capabilities, and overall performance. After that, the political, economic, social, technological, legal, and environmental factors affecting the organisation’s sector are examined.
2. Stakeholder Engagement: In creating a dynamic strategic plan, the key stakeholders, including customers, employees, investors, and partners, are engaged to gather feedback on current strategies, expectations, and areas for improvement. The stakeholders’ input and buy-in provide valuable insights into the external and internal perception of the organisation.
3. Goal Setting and Objective Development: After the analysis, the next step is to review and determine how the organisation will achieve its mission and vision. This involves defining specific, measurable, achievable, relevant, and time-bound (SMART) goals and objectives in alignment with the organisation’s mission and vision.
4. Scenario Planning: In creating a dynamic strategic plan, change is anticipated. After the organisation’s goals have been set, the next step is to develop scenarios or alternative future conditions plans based on the potential changes in the business environment. The different market conditions, disruptions, and innovations are considered in this process. This will help organisations prepare for various possibilities and allow them to be more responsive to unexpected events.
5. Strategic Initiatives and Action Plans: The next step is identifying strategic initiatives and action plans to achieve the defined goals and objectives. These initiatives should be aligned with the organisation’s strengths and opportunities while addressing weaknesses and mitigating threats.
6. Resource Allocation: After the strategic initiatives have been identified, the next step is to allocate resources strategically to support the identified initiatives. This involves optimising the allocation of financial, human, and technological resources to ensure the effective implementation of the chosen strategies.
7. Implementation: The next step is to execute the strategic initiatives according to the action plans. Key performance indicators (KPIs) and quarterly review templates are created to measure progress and ensure the organisation is moving toward its strategic goals. This is prepared to regularly review the initiatives and adjust the implementation based on performance metrics.
8. Continuous Monitoring and Evaluation: The most important step is to regularly monitor and evaluate the progress of the strategic initiatives and their impact on organisational performance. The external and internal factors affecting the organisation are also assessed continuously. This key step sets apart the dynamic approach of strategic planning from the static approach.
9. Communication and Transparency: Communicating the organisation’s strategic direction, goals, and progress transparently to all stakeholders is also an essential step in dynamic strategic planning. Effective communication ensures alignment across the organisation and helps build trust with stakeholders.
10. Feedback and Iteration: The concluding step is to regularly solicit feedback from employees, customers, and other stakeholders throughout the planning process. This feedback is used to iterate the strategies and continuously improve the planning process.
The Nigerian Organisation Success Story
Let’s go back to the discussion on the Nigerian organisation that adopted a dynamic business plan in this ever-changing business environment and achieved success. This organisation is a Nigerian-based last-mile delivery service company that initially started as a motorcycle ride-hailing service. However, due to Nigeria’s market conditions and customers’ demand, the company identified the need to diversify and adopt a dynamic approach to strategic planning. As a result, this organisation had to change its offerings from motorcycle ride-hailing services to delivery and logistics services. This organisation is none other than Gokada.
Gokada started its dynamic strategic planning process by conducting in-depth market research to tailor its transportation and logistics services to Nigerian consumers. Adopting an agile business model enabled it to quickly adapt and improve operations based on customer and data-driven feedback. Gokada developed a user-friendly mobile app that facilitated cashless payments, real-time order tracking, and simplified ride and delivery requests. This aided the expansion of Gokada into logistics and delivery solutions, diversifying its revenue streams and establishing itself as a leading player in the Nigerian market.
Gokada implemented a dynamic strategic plan that involved market research, agile business model adoption, technology integration, vertical expansion, partnerships, safety standards, customer-centricity, regulatory compliance, and continuous innovation. These strategies collectively contributed to Gokada’s success in disrupting Nigeria’s transportation and logistics industry and launching itself as a prominent player in the market.
How can pcl. help?
According to industry leader Gartner, organisations that can embrace change and execute new growth strategies increase their profitability by 77%. By prioritising dynamism and incorporating it into your strategy, your organisation can become more agile, innovative, and effective in achieving its goals in this ever-changing Nigerian business environment.
At pcl., we understand that as the business environment constantly changes in Nigeria, it is essential that organisations have a dynamic strategy in place for them to succeed. Our team of experts will work closely with you to develop a dynamic strategic plan that aligns with your goals and vision.
Unlock your capacity for growth and take your organisation to the next level!
For more enquiry, kindly send an email to strategy@phillipsconsulting.net
Written by:
Mercy Akindele
Analyst
