Avoiding demise: Resolving Strategic Drift with high value self-funding digital modernisation
- Rare Innovation
- Nov 21, 2023
- 3 min read
“Strategic drift occurs when the strategy pursued by a organisation (and those in a sector) no longer fits with the environment around it. What may have been appropriate at one point is no longer suitable as conditions have changed. Where the symptoms of strategic drift manifest in many forms, to avoid demise, recognition of drift is the first step to reconciliation of it.”
In the rapidly evolving digital landscape, organisations are continually seeking innovative strategies to reconcile strategic drift which requires often involves grappling with:
a) defining the cultural transformation necessary for abrupt modernisation.
b) the funding of digital environments (often including addressing the costs of resolving messy, complex and legacy IT challenges).
Indeed – assuming the symptoms of strategic drift have been recognised in organisation - given the often-seismic shift required to strategically adjust, and reconfigure operations, to today’s disruptive world, the financial implications of maintaining legacy systems, mistreating or under sizing any transformative effort – in and of themselves - often lead(s) to a stranded investment scenario.
Organisations invariably find themselves caught in a vicious cycle of having to justify and re-justify critical investments to address realisation of the real transformative efforts (to reconcile strategic drift) let alone coming to terms, financially and in practical terms, with the impact (and implications) of outdated technologies (as well as adjusting models to attract vital and talented resources needed for this).
When strategic drift intensifies, towards the latter stages of the flux-phase, this impedes the reallocation of increasingly sparse funds towards strategic Digital or IT initiatives that could otherwise drive the real future success or even the existence of the organisation.
However - one potent break through approach gaining significant momentum is the productisation of digital assets, innovation, and intellectual property (IP) to generate funds and the positive benefits this has the necessary cultural transformation of traditional norms as well as talent-attraction. This approach not only addresses legacy IT issues, but also fuels authentic human-geared transformation efforts (in the first place) and the ongoing digital modernisation efforts, enabling organisations, at one end of the curve, to reconcile years of calcified strategic incrementalism (a symptom of strategic drift in and of itself) and perilous strategic drift; while at the other - to stay ahead of curve, competitive and relevant in all facets of the definition, in today's dynamic environment.
Digital assets, including access to insights, data repositories, accessibility engines, decision and education enablers, software applications, and proprietary algorithms, often hold untapped value. By productising these assets, particularly with an enablement proposition, organisations can create new revenue streams of many forms – many with low impact start up overhead and delivery. For example, repackaging data insights into marketable analytics products or licensing enablers or software, with easy-access and adaptable micro-service methods – fueled with consumption-based accessibility and affordability - to external entities, professionals &\or consumers can generate significant income, helping fund IT initiatives critical to rescuing or modernising the host organisation (or in abrupt resolution or ongoing reconciliation of strategic drift).
Critical to models for this though, is the development systems thinking in practitioners and leaders. This helps organisations adopt triple loop strategy in order to sense make and focus on learning-organisation approaches; focusing on deeper issues, the why behind strategic transformation motivations and actions; identifying purpose and the values that are important. This, combines to help organisations avoid strategic drift by changing how they see or perceive the environment; and them ourselves at core levels, shifting thinking and consequent actions.
Productising an organisation's digital assets in support of such adaptive strategic renewal (and associated realtime intelligence mechanisms for this), through triple-loop strategy, systems and design-based modernisation, offers compelling benefits in other areas; not limited to talent attraction. Firstly - this occurs by showcases a commitment to innovation and forward-thinking, making the organisation an appealing prospect for top-tier talent. Potential employees are drawn to companies that leverage and market their digital assets as products, indicating a dynamic and progressive work environment. Secondly, by transforming digital assets into marketable products, the organisation creates new revenue streams. As such, this financial stability enables organisations to offer competitive compensation packages and invest in employee development programs, making it more attractive to high-calibre professionals. Furthermore and lastly, the productisation of digital assets provides employees with exciting and challenging projects, fostering a culture of creativity and continuous learning.
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