When reviewing the strategic flexibility definition, one will see it is a new framework that helps organizations prepare in the face of unpredictable futures. You achieve it by asking “what if” questions, then building scenarios and real options in response to these conditions.
Why is flexibility important in business and how do scenarios push you toward strategic flexibility?
- Scenarios help managers formulate and implement strategy in a high-commitment, high-uncertainty work organization.
- Scenarios help identify constraints and interdependencies.
- Scenarios underwrite and authenticate strategic decision making through strategic flexibility in communication.
“Strategic Flexibility makes it possible for firms to prepare in advance for futures they cannot predict.”
– “Research Technology Management” by Michael E. Raynor and Ximena Leroux
It is only with scenario-driven Strategic Flexibility that organizations are able to assess projects continuously, and able to make critical decisions based on an in-depth view not gained by any other methods.
How can an organization develop strategic flexibility?
- A project encountering roadblocks can be given more resources, instead of being canceled, because scenarios have shown its viability.
- Seemingly problem-free projects can be dropped when scenarios make it clear that they are no longer contributing to or aligned with core organizational goals.
The future is never certain. But you can meet it with dynamic responsiveness. You can move forward confidently through changes when you have access to strategic predictions. If you share your findings and act accordingly, you may save a project or protect the company from a significant loss of time and resources.
If you’re looking for a more comprehensive article, download the full white paper, “Scenarios Hold the Key to Strategic Flexibility,” for an in-depth look at how scenario building is the key to strategic flexibility.
Abstract: Overwhelming research indicates that Strategic Flexibility is the gold standard for Project Portfolio Management, equipping organizations to respond effectively to a changing, competitive environment with strategic options and flexible resources. To achieve Strategic Flexibility, organizations must have optimized resource planning that balances resources against operational risks and avoids wasteful investments. Without resource and capacity planning support, even the most visionary strategy cannot be executed. The following white paper presents multiple principles from the current research on how to achieve Strategic Flexibility via resource management scenario building.
ProSymmetry was founded in 2007 by passionate resource management experts. Since then, we have continually strived to solve the resource management challenges that slow down, damage, and overwhelm organizations. We do this through our flagship product, Tempus Resource, which is used by Fortune 500 companies like Siemens, Airbus, Qualcomm, and DELL, and was labeled a “resource management solution accessible to the masses” and was awarded the 2016 Cool Vendor by Gartner.