The Power of Pre-emptive Strategic Planning

As a company leader invested in the future of your enterprise, it can be frustrating to see others content with handling issues only when they arise. How can you instill a culture of forward-thinking in your organization?

In many local organizations, strategic planning is often viewed as a luxury—an activity to be deferred until more stable times, when there’s ample time and money. For others, it’s merely a compliance exercise. Large companies and governments may conduct planning sessions just to meet requirements, with little emphasis on meaningful strategy.

In both scenarios, strategic planning is often deprioritized. The COVID-19 pandemic has further entrenched this mindset, turning strategy into a low-priority, habitual afterthought in the C-Suite. However, if you’re ready to break free from this mindset, consider adopting the concept of Threat Zones.

Defining Your Organization’s Threat Zones

A Threat Zone is a period, spanning several months or years, during which multiple threats converge. Individually, these threats might seem manageable, but together, they can create a perfect storm.

For example, a hurricane like Beryl in 2024 requires specific conditions: warm ocean waters, low vertical wind shear, high humidity, proximity to the equator, a weather disturbance, and atmospheric instability. Individually, these elements are harmless, but together, they can be catastrophic.

Similarly, a Threat Zone in an organization requires relatively innocuous elements, yet their combination can be transformative, but in the good way. Unlike hurricanes, they can also offer opportunities.

Consider Fujifilm and Kodak, which had similar revenues in 2000. However, Fuji recognized the Threat Zone emerging in the film industry, while Kodak did not. Today, Fuji’s revenue is 20 times that of its former competitor.

You might think your organization is immune to Threat Zones, but that’s a dangerous assumption. In my August 4th, 2024 Gleaner column, I highlighted the fact that even government agencies can be defunded and disbanded if they fall into this trap.

Take a lesson from Andy Grove, former Chairman of Intel. His book, “Only the Paranoid Survive”, details how Intel nearly went bankrupt in the 1980s due to a Threat Zone. Fortunately, a group of middle managers anticipated the threat and prepared the company for a switch from memory chips to microprocessors, despite Grove’s public stance.

How Can Your C-Suite Develop Foresight?

Threat Zones can be internal or external. Internal threats might include product-market fit, succession planning, and employee engagement, while external threats could involve climate change, government regulation, or inflation.

However, there’s no universal list. Your leadership team must identify which Threat Zones are relevant to your organization. Even if you bring in consultants, their help is limited; only your C-Suite can accurately determine your Threat Zones and when they might arise.

This requires rapid consideration of:

– Current trends that, while weak, cover a wide range of causes. Many start with the PESTER framework—Political, Environmental, Social, Technological, Economic, and Regulatory—but also include competitors and substitutes.

– Past results indicating long-term deficiencies that previous leadership teams have ignored, leaving them for future C-Suites.

– Insights across financial, customer, operations, and human resources. Even with incomplete data, plans must be made.

This task is too complex for any outsider or single individual, no matter their intelligence. Only a cross-functional leadership team can effectively conduct this analysis.

Planning Around Threat Zones

It’s tempting to quickly break down Threat Zones into individual threats, but resist this urge. Instead, use long-term strategic planning tools to tackle each one as an entity.

After identifying and assessing the impact and timing of Threat Zones, select no more than five to focus on. These should represent the most significant dangers or opportunities.

When crafting your long-term vision for a specific year (e.g., 2050), start with a narrative that addresses these five zones. Only then should you translate the vision into measurable targets.

As you work backward from these 2050 metrics to the present, create projects that address each zone. Define each project to include immediate actions.

Now, you’ll be taking pre-emptive action with a strategic plan that is game-changing.

The Power of Pre-emptive Strategic Planning

As a company leader invested in the future of your enterprise, it can be frustrating to see others content with handling issues only when they arise. How can you instill a culture of forward-thinking in your organization?

In many local organizations, strategic planning is often viewed as a luxury—an activity to be deferred until more stable times, when there’s ample time and money. For others, it’s merely a compliance exercise. Large companies and governments may conduct planning sessions just to meet requirements, with little emphasis on meaningful strategy.

In both scenarios, strategic planning is often deprioritized. The COVID-19 pandemic has further entrenched this mindset, turning strategy into a low-priority, habitual afterthought in the C-Suite. However, if you’re ready to break free from this mindset, consider adopting the concept of Threat Zones.

Defining Your Organization’s Threat Zones

A Threat Zone is a period, spanning several months or years, during which multiple threats converge. Individually, these threats might seem manageable, but together, they can create a perfect storm.

For example, a hurricane like Beryl in 2024 requires specific conditions: warm ocean waters, low vertical wind shear, high humidity, proximity to the equator, a weather disturbance, and atmospheric instability. Individually, these elements are harmless, but together, they can be catastrophic.

Similarly, a Threat Zone in an organization requires relatively innocuous elements, yet their combination can be transformative, but in the good way. Unlike hurricanes, they can also offer opportunities.

Consider Fujifilm and Kodak, which had similar revenues in 2000. However, Fuji recognized the Threat Zone emerging in the film industry, while Kodak did not. Today, Fuji’s revenue is 20 times that of its former competitor.

You might think your organization is immune to Threat Zones, but that’s a dangerous assumption. In my August 4th, 2024 Gleaner column, I highlighted the fact that even government agencies can be defunded and disbanded if they fall into this trap.

Take a lesson from Andy Grove, former Chairman of Intel. His book, “Only the Paranoid Survive”, details how Intel nearly went bankrupt in the 1980s due to a Threat Zone. Fortunately, a group of middle managers anticipated the threat and prepared the company for a switch from memory chips to microprocessors, despite Grove’s public stance.

How Can Your C-Suite Develop Foresight?

Threat Zones can be internal or external. Internal threats might include product-market fit, succession planning, and employee engagement, while external threats could involve climate change, government regulation, or inflation.

However, there’s no universal list. Your leadership team must identify which Threat Zones are relevant to your organization. Even if you bring in consultants, their help is limited; only your C-Suite can accurately determine your Threat Zones and when they might arise.

This requires rapid consideration of:

– Current trends that, while weak, cover a wide range of causes. Many start with the PESTER framework—Political, Environmental, Social, Technological, Economic, and Regulatory—but also include competitors and substitutes.

– Past results indicating long-term deficiencies that previous leadership teams have ignored, leaving them for future C-Suites.

– Insights across financial, customer, operations, and human resources. Even with incomplete data, plans must be made.

This task is too complex for any outsider or single individual, no matter their intelligence. Only a cross-functional leadership team can effectively conduct this analysis.

Planning Around Threat Zones

It’s tempting to quickly break down Threat Zones into individual threats, but resist this urge. Instead, use long-term strategic planning tools to tackle each one as an entity.

After identifying and assessing the impact and timing of Threat Zones, select no more than five to focus on. These should represent the most significant dangers or opportunities.

When crafting your long-term vision for a specific year (e.g., 2050), start with a narrative that addresses these five zones. Only then should you translate the vision into measurable targets.

As you work backward from these 2050 metrics to the present, create projects that address each zone. Define each project to include immediate actions.

Now, you’ll be taking pre-emptive action with a strategic plan that is game-changing.

Ep 19 – Enduring the Messy Stages of Strategic Planning

This is a free preview of a paid episode. To hear more, visit longtermstrategy.substack.com

Your company is in the middle of a strategic planning project. Things are going according to plan but there are several competing schools of thought about the future of the organization.

In discussions, voices are being raised as competing ideas are shared. You are beginning to feel nervous because the opinions cannot be reconciled easily. Should you intervene or allow it to run its course, even though things are looking like a mess?

Tune into this episode to hear from me and my special guest, Chris Fox, as we tackle this wicked problem together.

I’m Francis Wade and welcome to the JumpLeap Long-Term Strategy Podcast.

Here is a video of the excerpt from this episode, for free subscribers.

To watch the full episode, join JumpLeap as a subscriber. This supports the work I’m doing on long-term strategic planning. It appears below the Subscribe signup box.

JumpLeap Long-Term Strategic Planning is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.

Ep 19 – Enduring the Messy Stages of Strategic Planning

This is a free preview of a paid episode. To hear more, visit longtermstrategy.substack.com

Your company is in the middle of a strategic planning project. Things are going according to plan but there are several competing schools of thought about the future of the organization.

In discussions, voices are being raised as competing ideas are shared. You are beginning to feel nervous because the opinions cannot be reconciled easily. Should you intervene or allow it to run its course, even though things are looking like a mess?

Tune into this episode to hear from me and my special guest, Chris Fox, as we tackle this wicked problem together.

I’m Francis Wade and welcome to the JumpLeap Long-Term Strategy Podcast.

Here is a video of the excerpt from this episode, for free subscribers.

To watch the full episode, join JumpLeap as a subscriber. This supports the work I’m doing on long-term strategic planning. It appears below the Subscribe signup box.

JumpLeap Long-Term Strategic Planning is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.

End-of-Tenure CEOs: A Hidden Challenge to Long-Term Value

In the business world, the end of a CEO’s tenure often brings about significant challenges. As CEOs near the conclusion of their careers, a troubling pattern emerges: their actions can sometimes undermine long-term value and pose serious risks to the organization. This phenomenon is rooted in several behavioral tendencies that intensify over time.

The “Yes-Men” Syndrome

One notable issue is the increasing presence of “Yes-Men”—colleagues who are excessively compliant and unwilling to challenge the CEO’s decisions. This situation is not necessarily a result of intentional manipulation.

Critics argue that some CEOs deliberately remove independent voices to create an environment where their authority remains unchallenged. This view paints CEOs as Machiavellian figures who prioritize their power above the organization’s best interests.

However, a different perspective suggests that the problems faced by long-tenured CEOs are natural consequences of their extended time in office. A 2013 Harvard Business Review article by Luo, Kanuri, and Andrews describes a pattern of declining performance among leaders in their later years, likening it to a natural change in “seasons.”

The Role of Ego

Ego plays a significant role in this dynamic. CEOs, driven by their egos and a relentless pursuit of results, become more competitive as they advance in their careers. This drive, while necessary for reaching the top position, can become counterproductive. Over time, ambitious managers, fueled by their unchecked egos, surround themselves with sycophants who reinforce their decisions rather than challenge them.

The famous dictum by Lord Acton, “Power tends to corrupt, and absolute power corrupts absolutely,” is well-known among modern leaders. However, we should extend this insight to include the notion that power also corrupts invisibly. A CEO’s growing power can blind them to certain realities, leading to poor decisions and a lack of succession planning.

For instance, some CEOs fail to prepare for their succession or accept misguided advice from insiders. Others may go to great lengths to conceal corruption. Fortunately, there are exceptions. Some CEOs actively seek out individuals who can provide honest feedback, appointing them as “court jesters.” In medieval times, jesters had the unique role of criticizing the monarch, often delivering difficult messages in a palatable manner.

The Importance of Enablers

While internal change agents can introduce opposing viewpoints, companies also need strong board members who can effectively challenge the CEO. Many board members, despite being intelligent and ethical, lack the skills to push back against the CEO. They often fail to seek out and defend unpopular opinions that could safeguard the company’s long-term value. As a result, CEOs find themselves in an echo chamber of agreement.

The case of Olympus, the Japanese camera company, illustrates the consequences of this dynamic. In 2011, a fairly new COO, Michael Woodford, was promoted once again in an attempt to silence him as the leadership hid a long-standing financial scandal. When Woodford refused to ignore the misconduct, he was abruptly fired. His subsequent whistleblowing led to the removal of the entire top management team, ultimately saving the company.

Proactive Measures for Boards and Executives

To prevent such scenarios, proactive measures are essential. Board members and executives should receive training to help them recognize and address their blind spots. They need to understand that their judgment can decline over time and learn to communicate effectively to counteract this deterioration. By fostering awareness and providing tools for effective communication, companies can mitigate the risks associated with long-tenured CEOs.

Viewing the challenge as inevitable, rather than personal, can shift the organizational mindset. This perspective reduces the likelihood of a respected CEO unintentionally becoming a liability. Therefore, intervention through training and awareness can safeguard long-term value and maintain organizational integrity.

In conclusion, the end of a CEO’s tenure presents unique challenges that can threaten long-term value. By understanding the natural tendencies that arise with extended leadership and taking proactive measures to address them, organizations can navigate these challenges effectively.

Empowering board members and executives to challenge the status quo and recognize their blind spots is crucial for sustaining long-term success.

Three Horizons for Strategic Thinking: A Guide for Long-Term Planning Advocates

As a proponent of long-term thinking in your company, you’ve likely encountered resistance. You may feel isolated, struggling to articulate the value of strategic foresight to colleagues focused on immediate concerns. This guide aims to provide you with a framework to effectively communicate the importance of long-term strategic planning (LTSP) and engage others in this crucial mindset. The Challenge of Long-Term Thinking You’ve probably experienced this scenario: In a meeting, you highlight a future your colleagues can’t see. The potential long-term consequences seem obvious to you. Unfortunately, your team, preoccupied with urgent problems, lacks the energy to consider your strategic viewpoint. They opt for the quick satisfaction of immediate resolutions. Afterwards, you realize that fundamental issues remain unaddressed. It feels like you’re only discussing surface-level solutions without questioning the underlying approach. If this resonates with you, you’re not alone. Many forward-thinking professionals struggle to convey the importance of LTSP. But there’s a way to bridge this gap and bring others into long-term thinking: the Three Horizons Framework by Curry, Hodgson and Sharpe. Horizon 1: Understanding the Decay of Current Offerings Every organization provides value through its products or services. However, it’s crucial to recognize that these offerings have a limited lifespan. Each day brings you closer to the point where your current solutions become obsolete. Consider the photography industry. Until the 2000s, companies like Kodak and Fuji thrived selling film. Today, the average consumer has no interest in this product. This decay in demand is a universal truth in business, illustrated by the following curve:
The key question is: How long will your current strategic fit last? As an LTSP advocate, you’ve likely considered this. Now, you have a visual representation to share with your colleagues, helping them grasp this concept more easily. Horizon 3: Recognizing Future Opportunities While managing current operations is crucial, it’s equally important to look for signs of future trends. These “faint signals” can be found in emerging technologies, evolving customer needs, new regulations, environmental changes, and various other areas. By paying attention to these signals, your team can craft narratives about potential futures. This foresight defines the third horizon:
Many companies overlook these disruptors by failing to plan far enough ahead. As an LTSP proponent, you can encourage your team to do more than passively observe these changes. Instead, position your organization to influence and shape these future scenarios. Horizon 2: Bridging Present and Future To transition from current offerings to future opportunities, your organization needs a bridge – this is Horizon 2:
These are initiatives that may not represent your ultimate vision but serve as stepping stones towards it. Developing these transition strategies is best done in strategic planning retreats, where all departments can contribute their insights. Integrating the Three Horizons When effectively implemented, the Three Horizons Framework allows your organization to manage current operations, develop transition strategies, and prepare for future scenarios simultaneously:
This integrated approach demonstrates how long-term imperatives can and should inform immediate actions. Conclusion: Empowering Long-Term Strategic Planning By using the Three Horizons Framework, you now have a powerful tool to illustrate the importance of long-term thinking to your colleagues. This approach allows you to: 1. Visually represent the lifecycle of current offerings 2. Highlight the importance of future-focused initiatives 3. Demonstrate how to bridge present operations with future opportunities 4. Show how all these elements work together in a cohesive strategy Remember, you’re not alone in advocating for LTSP. Many successful organizations embrace this approach, recognizing that preparation for the future is key to long-term success. Use this framework to spark meaningful discussions about your company’s future. By doing so, you’re not just planning for tomorrow – you’re shaping it. Or learn more about the LeapOut approach and the detailed strategic planning framework we use with our clients.

Ep 18 – When a Written Strategy Document Lacks a Strategy

This is a free preview of a paid episode. To hear more, visit longtermstrategy.substack.com

Your company has a long history of putting together strategic plans. And you have diligently read them all in a search to understand the intentions of prior leaders.

But as you look them over you are concerned. There are lots of todo lists, action items, and budgets, but the underlying plan seems to lack something important – a strategy.

You can’t quite explain why this is the case, but you can tell when that intangible quality is missing. Perhaps, there should be a better way to tell than just raw instinct, but how?

Tune into this episode to hear from me and my special guest, Alexis Savkin, as we solve this wicked problem together.  You can access more of his articles on strategic planning at https://bscdesigner.com.

If you are a free subscriber, you can view the excerpt below. Upgrade your membership today for full and instant access to all past and future episodes.

Subscribers. here is the full video.

Ep 18 – When a Written Strategy Document Lacks a Strategy

This is a free preview of a paid episode. To hear more, visit longtermstrategy.substack.com

Your company has a long history of putting together strategic plans. And you have diligently read them all in a search to understand the intentions of prior leaders.

But as you look them over you are concerned. There are lots of todo lists, action items, and budgets, but the underlying plan seems to lack something important – a strategy.

You can’t quite explain why this is the case, but you can tell when that intangible quality is missing. Perhaps, there should be a better way to tell than just raw instinct, but how?

Tune into this episode to hear from me and my special guest, Alexis Savkin, as we solve this wicked problem together.  You can access more of his articles on strategic planning at https://bscdesigner.com.

If you are a free subscriber, you can view the excerpt below. Upgrade your membership today for full and instant access to all past and future episodes.

Subscribers. here is the full video.

Ep 17 – How to Find Time for Strategic Planning

You are in charge of implementing your company’s new strategic plan. It includes some brilliant new ideas which should shake up your industry, and even introduce the world to a new category of products and services.

But you are a bit wary because prior strategic plans barely made it off the PowerPoint pages. They weren’t implemented due to a common complaint – no-one had the time.

You have every reason to be worried, but what should you do about the problem?

Tune into this episode to join me in tackling this wicked problem from two perspectives at once…task management and strategic planning.

I’m Francis Wade and welcome to the Task Management & Time Blocking Podcast and the JumpLeap Long-Term Strategy Podcast.

This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit longtermstrategy.substack.com/subscribe

Strategy for Jamaican Sports Federations

You love your national sport. Seeing the Jamaican (or West Indian) flag soar above a global stage fires you up. But you also see that in football and cricket, we’ve fallen as a country. Could it be related to a lack of long-term thinking? When the West Indies men’s cricket team dominated the world in the 1980s and 90s, other countries envied them. They all tried to catch up, but Australia’s response was unique. They decided to invest in youth cricket like never before. Why? They recognized a long-term problem. Quick fixes wouldn’t solve it permanently. Fast forward a decade, and their success since then shows their planning at work. While we in the West Indies struggle to find talent, revive interest, and fix governance problems, Australian dominance continues. Simply put, they built a system to win international cricket. Meanwhile, the West Indies continues to fail, except for occasional successes. We get lucky sometimes and win, but those wins happen despite our system, not because of it. I’m not criticizing our setup; I’m not an expert. But if we learn from Australia’s long-term focus, can we apply it to our national football team? We Jamaicans got lucky and competed in the World Cup once, but a sustainable system is still missing there. More importantly, is there something our sporting federations can do differently in their planning? Here are three ideas if you’re part of one. 1. Pick a Target Year and Visualize First, set a planning horizon 10-30 years ahead, and name it your Target Year. Be careful; picking too close or too far has downsides. If you pick a year too close, it becomes selfish. You’ll be pushing aside future generations. Also, if you’re too aggressive with your short-term goals, others won’t believe you. As a result, they won’t take action. On the other hand, if you pick a year too far away, your plan could become irrelevant as soon as its developed. There won’t be enough urgency for stakeholders to respond. But the key is not just choosing the right year. The idea is to commit to milestones between now and your target date. These milestones should create the right mindset on a large scale. They should inspire people of all ages to make the sacrifices needed for world-class performance. After setting a Target Year, create a vivid vision or end-game. This isn’t just a vague “vision statement” but a numeric, measurable list of outcomes. Together, they describe your desired future. Within this space, generate up to three unique but alternative visions. Then, choose one. Many organizations make a big mistake by stopping here. 2. Strategize Backwards To connect your vision to reality, you need to backcast, or plan backward from your desired future to the present. As you do, you’ll correct two common anomalies. The first anomaly is that some of your initial, visionary outcomes are probably unrealistic, and some will be overly ambitious. The second anomaly is when the Target Year itself has to change to make the plan work. Don’t remove these anomalies randomly. Your team needs to find a careful balance between aspirations and reality. As such, this is a task for insiders and can’t be outsourced. If your team fails to achieve this balance, you’ll lose fan support. For example, if they sense that the planning team said yes to too many things without making tough choices, they may turn away. Your plan needs to make logical sense. 3. Build Social Support Sporting federations need widespread fan support, but the old way of “selling” your plan to people doesn’t work anymore. Instead, the modern approach is to involve fans in the process from the beginning. But this doesn’t mean filling a room with hundreds at every meeting. The key is to incorporate both divergent and convergent activities in your schedule. Divergent activities are invitations to gather more input. They benefit from broad participation. However, convergent activities involve making tough decisions using that same input. This is a consolidation step where you summarize and draw conclusions. Use both in a sort of dance, and you’ll bring your fans into your long-term thinking and the planning needed to achieve success in your sport.
Find out more regarding the LeapOut approach and the detailed strategic planning framework we use with our clients.