I was talking to my mate Ed the other day. It was one of those lets talk about anything conversations. We both have extensive consulting experience so perhaps it isn’t too surprising that we ended up talking about organisational strategy. Or the lack of it. A surprisingly high percentage of companies we have encountered lack an defined organisation strategy beyond “keep doing what we’re doing and hope”. Personally, I believe every company, regardless of size or industry, needs a strategy. Here’s why.
The Risks of Operating Without a Strategy
Have you ever worked in a company struggling with these issues?
- Stagnation – A chaotic organisational structure leading to inefficiencies.
- Poor Employee Engagement – Disconnected employees with lower morale and productivity.
- Resource Mismanagement – Inefficient decisions wasting time, money, and effort.
- Inability to Adapt – Slow to respond to market changes or disruptions.
- Decreased Competitiveness – Falling behind competitors.
If so, there is a good chance that company lacked an organisational strategy (Chron, 2011; ECI Solutions, 2023; Lucid, 2021). A Clear Vision is Essential for Agile Programme Management, but also for organisations as a whole.
What Is Organisational Strategy?
An organisational strategy is a structured plan detailing how a company will achieve its goals. It consists of two key components: (1) the goals and (2) the plan. While strategies often outline objectives for the next three to five years, some focus solely on the near term (12 months).
The plan defines how company resources — such as labour, finances, and inventory — will be allocated to achieve these goals. I use the term plan loosely, as this is more of a roadmap: a strategic guide that evolves over time, shaping decisions and actions.
A well-defined strategy ensures all efforts align with the company’s mission. Without one, businesses risk drifting aimlessly, reacting to circumstances rather than proactively shaping their future.
The Benefits of Having a Strategy
Having a well-defined strategy offers numerous advantages (Clear Point Strategy, n.d.):
- Improved Decision Making
- Better Resource Management
- Increased Operational Efficiency
- Enhanced Market Responsiveness
But for me the big thing is Purpose Finding. There are lots of things we (collectively) could do, but we should only do those things that contribute to the organisational goal.
Why Every Business Leader Must Prioritise Strategy
As someone with decades of experience in the technology industry, I’ve seen first-hand how businesses that neglect strategy often flounder. For example, I’ve worked for two software houses and they shared the same problem they were generalists when the paying customers preferred specialists. Interestingly both of those software houses morphed into product companies. Good strategy.
That is the point. Companies that invest in strategy — whether through clear OKRs, detailed roadmaps, or strong alignment between leadership and delivery teams — consistently outperform their competitors. It is simple maths. With more people pulling in the same direction, you will go faster. By introducing this approach into an organisation with 550 people in the technology team, I oversaw massive improvements. Initiatives delivered 23% faster; 81% more initiatives finished per year; Increased Focus by 30%.
Final Thoughts
Strategy isn’t a luxury — it’s a necessity. Whether you’re running a startup or a global enterprise, having a clear, actionable strategy ensures you’re making deliberate, informed decisions rather than just reacting to the market. If you don’t set a direction, you’ll drift. And in business, drifting is rarely a recipe for success.
So, what’s your company’s strategy? More importantly, is it actually working?
References
Chron. (2011). What Happens When an Organization Has No Coherent Strategy? Retrieved from https://smallbusiness.chron.com/happens-organization-coherent-strategy-20289.html
Clear Point Strategy. (n.d.). Why is Strategic Planning Important? & 4 Benefits. Retrieved from https://www.clearpointstrategy.com/blog/the-benefits-of-strategic-planning
ECI Solutions. (2023). 6 Consequences of Your Business Not Having a Vision. Retrieved from https://www.ecisolutions.com/blog/6-consequences-of-your-business-not-having-a-vision/
Lucid. (2021). Warning Signs and Risks of Poor Organisational Alignment. Retrieved from https://lucid.co/blog/warning-signs-and-risks-of-poor-organizational-alignment