...by its resiliency in uncertainty”

Last month, we opened a discussion around the intersection of the value of artificial intelligence (AI) and strategic thinking. Based on the responses both online and offline, we decided to delve into each of the three discussion points from that article and give each their own full article. Using the title from Wayne Chirisa, author and corporate strategist, we will take a closer look at how AI makes strategic planning more dynamic.
We live and operate in a VUCA (Volatile, Uncertain, Complex, Ambiguous) business environment. To combat those dynamics, leaders are constantly looking for strategic signals within their industries and markets. When leveraged effectively, AI can support capturing those signals in real time to support leader’s strategic thinking process. But before we discuss AI directly, we are reminded that...
Strategic planning was always dynamic ~ With or without AI, strategic planning was always treated as a dynamic process for it to be effective. A strategic plan created at the beginning of a business cycle would typically start off in the intended direction. At some point, the environment changed such as a competitor launching a new product or service giving it a competitive edge and invalidating part of the leader’s intended strategy. Other forces, planned or unplanned, would continue to cause leaders to react to those forces by re-thinking their original strategic assumptions behind their current strategy. These forces can have either a negative effect or positive effect on the current strategy. At Sprint, when one of our competitors was purchased, it left their global business at risk. This created an unplanned opportunity for us to capture a portion of their at risk business to complement our existing global client base. The lesson here is...
External forces are constantly changing
~ Regardless of what business leaders are responsible for, the challenge is keeping up with changing external forces. While larger organizations may have resources to keep up with market dynamics, many non-profits and smaller businesses do not have that luxury. While some industry associations serve that role, many do not. Leveraging AI to keep up with key market and industry trends is now easier than ever. Using the PESTEL (Political, Economic, Socio-Cultural, Technological, Environmental, Legal/Regulatory) External Environment Scanning tool, AI tasks can be created to track each of the six elements of the tool in the context of the leader’s business strategy. For example, instead of reading the one big, beautiful bill (which we did) to understand its impact on our non-profit clients, we can now use AI to scan the regulatory environment for real-time decisions and events that impact the non-profit community. This level of access levels the playing field for leaders at all levels, in any industry, for profit or nonprofit and of any size. However, the leader must still understand the importance of...
Critical thinking at the speed of business ~ It’s one thing to have access to real time information about what is happening in the leader’s markets and industries. It is another thing altogether to be able to interpret and decide on the information in the context of the vision, mission and strategic direction of the organization. In our most recent guest podcast, we established the importance of context when knowing where and when to leverage AI. You can see the full podcast here. We’ve discussed how we view the critical thinking process in previous articles both here and here. The ability to factor new information into revised assumptions and conditions to support an evolving strategy is crucial to the leader’s strategic thinking and keeping their organization relevant in a VUCA business environment.
We define strategy as the action plan for how a business outperforms its competition and achieves superior impact. What is key to leveraging AI in this stage of the strategic planning process is how AI is leveraged versus simply being used. Using AI typically looks like random prompts to find out something in the moment similar to a Google search. Leveraging AI looks like tasks created that run 24x7 in the background constantly scanning cyberspace for changes that are feedback to the leader based on the conditions and context of the business. The leader can now focus on the key decisions necessary for sustainable success of the business!
How are you leveraging AI to keep your strategic thinking relevant? If you’re not sure, we can help
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