Since 2002, we have had the privilege of working (Developing Strategic plans) for leading private sector companies across many sectors and industries in Sri Lanka. As a part of our external analysis for such projects we have had the opportunity to analyse the main competitors of these customers. In our analysis we have seen an alarming number of these organization suffering from Strategic Inertia.
How to Spot Strategic Inertia
In our research we have identified the following key characteristics as indicators of Strategic Inertia. They are:
- Reliance on “Predecessor Success/Specialization” this is your historical success or specialization the current head (CEO/MD) has inherited from the previous head of the organization. This situation is further complicated when the previous and incumbent heads of organization are family members. One has to clearly understand that the market conditions that gave the previous success is no longer valid and not be fooled by the continuation of the residual effects of that success.
- Unwillingness to accept “trends in statistics” as they are not able to agree on a number. Many leaders get hung up on statistical numbers but fail to acknowledge the trend. Be it the rate of inflation, rate of unemployment etc. it is vital to see the trend than agree or verify the accuracy of the number. The reaction time that business have to adjust to external changes are getting shorter each year and your success will be determined by your ability to change faster than your competition.
- Everyone is hard at work but we get the same results. New initiatives are undertaken regularly in your organization and everyone has agreed to change. However we keep on getting the same result (often in spite of many meetings, committees, and the like). The issue is, doing slightly different things using the same people and process are unlikely to yield the results you desire on a long term sustainable manner. What you may require, may be doing radically new things by new people in new ways. This is the scariest of the changes in organizations and most leaders are not able to do this without outside help; therefore regression is allowed and practiced through the back door; while agreeing that we need to change. This is the fundamental difference of organizations that embrace change rapidly and succeed and those who stick with the old ways long after it’s clearly proven that it isn’t working, in any area of organizations management.
So if you identify with any of the issues discussed above the chances are that your organization is suffering from Strategic Inertia and thus preventing you from reaching your full potential.