The coronavirus pandemic gave us a sharp lesson in change dynamics, proving how inadequate deliberate, planned strategy is in the face of unpredictable circumstances.
According to MemberWise’s Digital Exellence Report 2021/22, 68% of membership organisations have no digital strategy, 61% have no digital road map/plan and an astonishing 75% have no data strategy. So when it comes to membership organisations taking a strategic approach, it’s clearly time for a rethink.
Whilst some membership organisations have managed to fast-forward 3-5 years in the last 12 months, the sector as a whole needs to revisit its approach to strategic thinking and planning by adopting an active strategy mindset that allows a faster response to emerging threats.
The challenges of planned strategy
Planned strategy, by its nature, is dependent on the stability of the status quo of an organisation’s environment and its market. Planned strategy relies on a forecasted, anticipated roadmap of the future needs of the organisation and its members.
These efforts are laudable but woefully inadequate. The problem is that the future cannot be reliably predicted.
Forrester reported that more than 50% of digital transformation efforts fizzled out entirely in 2018. And 70% of digital transformations fail completely, most often due to resistance from internal teams.
When attempting to execute against a planned strategy, organisations often fail to properly define ‘what’ will be done or ‘how’ the goals will be reached. More common still is the lack of alignment between these activities, resulting in many of the operational challenges cited in Memberwise’s Digital Excellence Report 2021/22; legacy association management systems, a lack of integration, high perceived costs and a lack of regular investment in technology.
What’s the alternative?
There’s nothing wrong with having a plan. But by working with a ‘planned’ or deliberate long-term strategy, you could be missing out.
Emergent strategy is popular with organisations that realise the weaknesses of planned strategy. This concept relies on a pattern of action developing over time in an organisation in the absence of a specific mission and goals, or despite a mission and goals. The ‘strategy’ emerges over time to accommodate a changing reality.
However, I believe there is a better way. One where an organisation rallies behind the mission and goals of a planned strategy but is agile enough to react to unpredictable changes.
The better way is active strategy.
What is active strategy?
An active strategy methodology within an organisation can recalibrate how the future is approached.
Active strategy is not reinventing the wheel; it’s making it turn smoother.
It addresses the often-woolly goals of a planned strategy by including specific activities that will make strides towards the overall goal.
And rather than the usual 1- to 3-year cycle of a planned strategy, an active strategy is set around much shorter phases. Annual reviews are replaced with 90-day reviews to validate and adjust activities.
Not only does an active strategy get you to your end goals much faster, it also offers the chance to introduce previously unplanned activities to capitalise on emerging trends. Like a planned strategy, you might still head down the same path, if that’s the best course of action. But if circumstances change, active strategy lets you change with them.
Why does active strategy work?
Active strategy lets you embrace opportunities quickly and move at the pace your members demand. It is agile, using short-term targets aligned to the overall goals so more is achieved over the long-term.
Using active strategy, you’ll work closer and better with your members, colleagues, board members and other stakeholders, thanks to the forward-moving energy it exudes.
You will improve alignment between internal teams, reducing the unintentional dissension, creating a harmonious environment.
You’ll deliver results when they’re needed and meet KPIs in real time.
Regular reviews give you better visibility on how your company is performing. This visibility allows you to take action to progress and share success with your board.
There is nothing wrong with the essence of a planned strategy, and its concepts remain a pillar of active strategy. However, the world is chaotic, so we need an approach that lets us keep pace or perhaps even stay a step or two ahead.
What now?
If I’ve piqued your interest and you’d like to find out more how active strategy could work for you, you can download the framework here. Or, to be guided through the process, get in touch with us today.
Distinction is a digital strategy agency that partners with membership organisations on their digital transformation journey. From delivering engaging online member experiences to digital marketing tactics that consistently increase member acquisition and retention rates, our active strategy approach is member-centric and delivers constant progress against business KPIs.
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