Strategy and How It Adapts to the Recursive Nature of Business/insights/strategy-and-how-it-adapts-to-the-recursive-nature-of-business

Strategy and How It Adapts to the Recursive Nature of Business

Aug 20,2018

When it comes to planning and decision-making, it is an established fact that context is king, as it relies upon earlier foundations to move the company forward with a thorough assessment of organizations needs and objectives. Professionals who wish to take up leadership positions in the future, or are currently team leaders and/or upper management, must understand that when it comes to strategy, existing systems and processes are designed to fit like tailored clothes and it usually better to make adjustments, rather than undo the seams and start over from a single, formless piece of cloth.

The reasons behind this are numerous, as existing infrastructure exists to fulfil specific needs of the organization as well as its workforce and how it interacts with networks and connections for both internal and external matters. While in some cases, complete strategic overhaul might be beneficial but very rarely is this the case, as organizations thrive on consistency in performance as well as a sound integrity in their overall functioning and without this, work periods can be severely hampered.

The Importance of Strategy

That does not mean that strategy need not be an adventurous undertaking. Indeed, without the capabilities of those professionals who are not afraid to make bold or creative decisions, companies find themselves lagging behind in international markets. Without experimentation, there is rarely room to grow in the long run, and even the impact of mistakes within the organization as a result of strategy can be observed as a learning experience through an analytical lens. The importance of strategy is to comprehend that it is deeply tied to both company beliefs and the nature in which their respective industry functions, and find a middle-ground which can cater to needs of both organization, and its employees.

It is this need to constantly evolve as a whole that makes modern organizations what they are- in spite of uncertainty and multiple interests to take care of, we see organizations modify existing systems to create new and innovative paths toward the future while fulfilling some core functionalities and logistical requirements.

Recursiveness and Consistency

The concept of business cycles is deeply tied to our decision-making process as it has significant impact on the nature of the decisions being rolled out, and even when they are taken. Recursiveness in business is a subtle thing to understand as the lines that define the overall condition of the company are not always defined beyond meeting business objectives and negating costs. Every now and then, companies will find themselves working in a similar situation that they were in, in the past. This is because of several factors, all of which change with time. Target demographics, targeted markets, internal rearrangement, shifting leadership, relocation, expansion, etc. are some of these factors. Every now and then, a company will find itself in positions it has been before, and the weight of its previous decisions and experiences come into play.

An effective strategy professional understands that a similar experience need not be the same, and decisions must be made accordingly, but normally, tried and tested techniques often find themselves undergoing some fine tuning, but essentially with the same process as what got them to their current position since the last time. Consistency in both logic and performance is key to be an effective decision maker in the corporate world, and this recursiveness in business can be seen as a method to gauge the type of reform that needs to occur in order for organizational needs and success to be reached.

Adaptability as a Core Capacity

Now, it is foolish to assume that everything will remain the same in the next business cycle, as the organization has had significant time to improve in both size and quality to it isn’t exactly the same as before, just a similar situation with altered circumstances. Increased market presence means increased competition, and even taking account of inflation and PR factors, to name a few. The adaptive capability of an organization is put to test when realigning decisions to account for new factors and experiences. There is both compromise and opportunity to right wrongs made in the past, or experiment with something new if previous attempts did not prove to be as fruitful as they were intended. The world of strategic leadership is tricky to navigate for this exact reason and professionals willing to explore out of their comfort zone and that of their organizations are often rewarded for their daring and curiosity.

Balance in Decisions

Older employees often catch up after work, and make remarks like,” The more things change, the more they stay the same” and this is not without precedent. It is in the best interests of an organization with an experienced workforce and willing to expand to strike a core balance, that is different from the balance they saw fit to strike earlier because, as time progresses, the situation changes but functionality is something that has to always stay effective for the success of the organization.

Conclusion

Whether this is by design or not is a debate for the analysts, but the nature of business is such that understanding shifting needs and the necessity. Good leaders know when to push away preconceptions when dealing with situations they have experience in, and find ways to adapt to changing circumstances as well. Accessing networks to tackle challenges, and even weighing inputs from subordinates are all good practices toward building a better tomorrow. As we move forward in the modern business environment, strategy will continue to evolve toward the benefit of its employees and society at large.