In the thought leadership publication ‘The Directors’ Cut’ I spoke about major companies moving to a 6 + 6 of strategy. What does this mean?
Due to disruption and the GFC, companies reduced the timeframe of their strategic plan – moving to 3 year strategies rather than 5 to 10 years. Despite the critical need to be adaptive in strategy, most found that a 3 year view is not long enough to set a clear direction for the organisation to follow.
The 6+6 refers to the fact that Boards and CEO’s are now trying to manage strategy in two-time frames. The first 6 of the ‘6+6’ therefore relates to a 6 year+ timeframe for the company’s strategic vision. The second 6 refers to a 6 month perspective; ensuring that strategically they remain agile to respond to rapid market changes and the threats of any disruptive force.
While organisations have always been in the day-to-day operationally, the fact that they are having to continually review strategy as well as keeping a long-term direction, is adding complexity for both the Board and C-suite.