Traditional business strategy, centred on risk management and predictability, is losing relevance in the face of the ‘Big Shift.’ This shift, driven by digital technology, is leading to a rapid increase in uncertainty and performance pressure. As such, businesses must adapt their strategy to embrace unpredictability, focusing on learning and adapting rather than simply executing pre-defined plans.
The ‘Big Shift’ is marked by two key elements: the ‘knowledge flow’ and ‘scalable learning.’ Knowledge flow emphasises the importance of learning from interactions, both within and outside the organisation. Scalable learning, on the other hand, is about creating an environment that supports and accelerates learning at scale.
These elements necessitate a shift in business strategy from ‘scalable efficiency’ to ‘scalable learning.’ This involves a move away from standardisation and predictability, towards fostering a culture of curiosity, imagination, and experimentation. It requires businesses to prioritise long-term value creation over short-term financial performance, and to view employees as participants rather than resources.
In this new environment, businesses must learn to harness the power of pull – attracting and accessing people and resources when and where needed. This approach, coupled with a focus on scalable learning, can help businesses thrive in the face of increasing uncertainty and performance pressure.
The ‘Big Shift’ presents both challenges and opportunities. Businesses that adapt and learn to thrive in this new environment will be well-positioned to create more value and achieve sustainable success.
Go to source article: http://edgeperspectives.typepad.com/edge_perspectives/2014/02/the-big-shift-in-business-strategy.html