Strategic planning in the post COVID environment

As businesses return from the lock down period and once the immediate challenges that presented from the return to trading are resolved, thoughts and attention will need to turn planning for the future.

Many businesses have a long term aim and some have a detailed plan on how to achieve, but with the inevitable changes impacting from COVID-19, all management teams will need to assess firstly if the aim is still reasonable and secondly if the strategy to achieve is viable.

For some businesses, the aim can be a general statement that the business always strives to achieve; for others, it could be very specific, for example, to achieve an annual profitable turnover of £15M within 5 years.

To assess if the aim is still achievable, consideration needs to be given to business position in its specific sector. Most, if not all, sectors will have changed as a result of COVID-19 and therefore management need to be realistic when challenging what is achievable and over what period this can be achieved. 

The operational and financial health of the business post COVID will be critical to future planning. Realistically, the business position may have worsened as a result of the crisis and therefore future strategy could be impacted as a result.

Driving for investment and growth in a business that is now carrying extra liabilities (including bank debt) could be harder as cash remains scarce resource. These changes could temper the time frames to achieve, and it is likely that many businesses may have to approach the future in a very different way.  Business assets and resources will need to be deployed differently to adapt to a changed business landscape. 

The new strategic plan will need to be flexible, as it is probable that in the post COVID environment there may be less stability, and having a plan that can quickly adapt to and embrace change will enable a business to flourish. A good plan is the best method of achieving a long term goal based on the facts presenting today. A great plan recognises that the future is unclear and builds flexibility in as a result. 
 
At a macro level, any economic shift will present challenges and opportunities.

Mergers and acquisitions always play a key part in a recovering market where organic growth can be hard to deliver. We expect M&A activity in this market to include distressed opportunities, as some businesses will inevitably suffer.

Others, will simply decide that now is the optimal time to exit. A good strategy provides a framework through which to assess such opportunities – does it aid in delivering the plan or could it be a distraction?

As a final comment, having a strategy is key to any business and often the success of that strategy will be dependent upon staff engagement.

Experience has shown that a well articulated strategy results in an engaged workforce which in turn improves productivity. What better platform to give the best chance of achieving the aim.