The problem is rarely the problem itself - the problem is often the mindset around solving the problem. An iterative strategic approach can be the key to breaking old habits and ensuring future business success.

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There isn't a business that isn't affected by concepts like change, evolution, digitalization and artificial intelligence. And with good reason. The world is moving at a speed we have never experienced before. In material, technological and knowledge terms.

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In the wake of this rapid movement, businesses are faced with a choice: Do we close our eyes, carry on as usual and hope for the best? Do we fight for survival? Or should we put ourselves at the forefront of change?

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No sacred cows

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This is where the mindset of the company and management comes into play. A mindset that, for some, is stuck in the past and where the creature of habit reigns, while the mindset of others renews itself in line with changing demands and expectations.

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Successful companies manage to balance efficiency, structure, involvement and curiosity in their strategic work.

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It requires a management team that is able to organize and frame the strategic work and thus steer the company's development. It requires courage and involves breaking with "sacred cows" and old routines and opening up and inviting the organization to participate in participatory and iterative strategy development.

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ALSO READ: Put the customer first blah, blah, blah

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No matter the age, businesses are and will always be challenged in vital and delicate areas that test business assumptions and challenge the creature of habit in us.

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Outdated processes and linear plans often drive decisions, making it difficult to respond to rapid changes in the market.

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The result? The company lags behind the competition and puts its survival at risk.

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An inclusive and iterative strategy process can seem daunting at first glance. Management may fear that it undermines their authority. But combining the knowledge and experience of employees with the strategic vision of management creates the best conditions for innovation and growth.

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Structure creates freedom

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Skeptics will cry "beware" because they fear that a more open, participative and iterative strategy process could result in chaos. As a senior leader once said to me: "This isn't the red room."

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But be aware that an inclusive and iterative approach is not antithetical to the clear framework and structured governance that, in my experience, creates the freedom to innovate. When the goals and process are clear, the organization can navigate freely within this framework and deliver creative and sustainable strategic solutions that look into the future.

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Unclear frameworks and lack of structure, on the other hand, lead to too much room for interpretation, which in turn leads to misunderstandings, wasted time and reversion to old patterns.

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In other words, the lack of a clear framework perpetuates our habitual way of working and reinforces the creature of habit. A clear iterative framework, on the other hand, fosters an environment where new ideas can flourish, we can think outside the box and everyone knows how they can best contribute.

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ALSO READ: Are you creating your future - or is the future creating you?

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The mindset sets the limit for development

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The old, linear way of thinking about strategy development has reached its limits. Limits cannot be crossed using our old mindset and old habits. We need to understand that the future requires a new mindset that lays new and fruitful paths to develop and manage strategy development.

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Your business can never evolve beyond your own mindset. So dear top leader, take control of your mindset and don't make the unconscious choice to let the beast of habit prevail.

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This column is published in Finance on November 12, 2024.

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We discovered greater growth potential than expected and can now once again expect a doubling of revenue.

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Tonny Nielsen

Adm. Managing Director

Food Diagnostics A/S