“Post-processable velocity” is emerging as a useful way for companies to think about strategy in an environment where technology, customer behaviour, competition and operating conditions can change faster than traditional planning cycles. Instead of developing a long-term plan around assumptions that must hold true for years, organisations are designing more and more for their ability to absorb new information, reassess decisions and redeploy resources without rocking the entire business.
Post-Processable Velocity Redefines Business Agility’s Meaning
Traditional strategic planning includes annual budgets, multi-year forecasts, and fixed operational targets. That path can be difficult to follow if market conditions shift before a plan is complete.
A velocity-driven approach is more about how fast an organisation can respond to new developments once they occur. Flexible technology systems, data at hand, decentralised decision-making and agile teams could help companies respond better without needing to rebuild their strategies from the ground up.
More Flexible Long-term Plans
Long-term planning is not going away. Instead, many businesses are distinguishing between durable strategic objectives and the particular means by which they are achieved.
A company may have a 5-year goal of market expansion, profitability or customer growth, but revisit the investments and operating decisions that support that goal every quarter. This allows leadership teams to stay grounded, while modifying their execution as they get new information.
Shorter Decision Cycles Mitigate Strategic Risk
One benefit of adaptable planning is that companies don’t have to get every one of their assumptions right at the beginning of a big initiative. Management teams can make smaller commitments, see what happens and up their investment when the evidence supports their strategy.
This is akin to scenario planning and test-and-learn management practices that many US organisations already practice. Instead of treating uncertainty as a problem, companies can set up processes that allow decisions to be adjusted as conditions become clearer.
Technology Accelerates the Strategic Feedback Loop
Digital platforms, cloud infrastructure, analytics systems and automation have dramatically reduced the time it takes to collect and interpret business information. This allows companies to track sales, customer behaviour, operational performance and competitive developments much faster than organisations that rely on traditional reporting cycles.
That puts pressure on strategic planning processes to keep up. Timely information is of little value when critical decisions are embedded in annual planning calendars that are not easily adjusted for change.
Organisation Structure Is As Important As Technology
More information faster does not necessarily lead to faster strategic adaptation. Companies need organisational structures that enable teams to act on what they learn.
Several studies of organisational agility have consistently found factors such as clear accountability, empowered teams, quick reallocation of resources, and effective communication. Tight control of the approval process allows you to see the market change coming, but you can’t act on it before your competitors do.
The increasing significance of scenario planning
Because of uncertainty, companies have created several possible versions of the future, rather than relying on one forecast. Scenario planning helps executives to spot signals that economic, technological, regulatory, or competitive conditions may be moving in a different direction.
Companies prepare strategic options ahead of time, rather than trying to predict what will happen. This can speed up the adjustment process later, as the leadership teams will have already worked through possible responses.
Sources
- Harvard Business Review – Research and analysis on strategic planning, organisational agility, and decision making.
- McKinsey & Company – Research on agile organisations, dynamic resource allocation.
- Boston Consulting Group – Adaptive strategy Scenario planning Organisational resilience assessment
- Deloitte – Research on Enterprise Agility, Digital Transformation and Changing Business Planning Models
- MIT Sloan Management Review – Research on data-driven decision making, digital strategy and organisational agility
