strategic drift

• What is Strategic Drift?

  when the strategy of a business is no longer relevant to the external environment facing it
• Why Does Strategic Drift Happen?

  • Business failing to adapt to a changing external environment (for example social or technological change)

  • A discovery that what worked before (in terms of competitiveness) doesn’t work anymore

  • Complacency sets in – often built on previous success which management assume will continue

  • Senior management deny there is a problem, even when faced with the evidence
• Phase 1 of Strategic Drift- Incremental Change

  little significant change in the external environment. A series of small, incremental changes to strategy enable the business to remain in touch with the external environment
• Phase 2 of Strategic Drift - Strategic Drift

  The rate of change in the external environment is accelerating and small, incremental changes in strategy are not enough on their own to remain in touch. The business will be losing its competitive advantage
• Phase 3 of Strategic Drift - Flux

  characterised by management indecision. There is now a significant gap between what the market expects and what a business is delivering. Management may have recognised this gap and begun to alter strategy, however there is no decisive improvement
• Phase 4 of Strategic Drift - Transformational Change or Death

  Either management recognise the need for a transformational change in strategic direction, or the business fails. It often takes new, external leadership for this recognition to be made and the relevant strategic change programme implemented.