When it comes to strategy development in the current climate, we need to be aware that these factors will limit the potential for strategic growth and transformation over the short to medium term. As a result, the focus will likely be centred around the following imperatives:

Organic growth

Point of difference to market positioning

Business optimisation

ESG and decarbonisation agendas

People capability and retention

Borrowings reduction

While the strategy, the associated blended focus and positioning across the imperatives will be different for each organisation, for all:

Delivery of the strategic objectives and imperatives will be time critical

ESG and decarbonisation will have cost and operational implications

An understanding of the current-state business baseline and calibration to organisational positioning, culture, and capability will be a prerequisite

Client pricing, contracting, services, and risk allocation models may require revising

The business go-to-market approach, service delivery/operational model, capability mix, and risk protocols will require repositioning

Investor, lender and board expectations will need to be closely managed

Short delivery timeframes and an extended level of granularity will be required for strategies, their associated delivery plans, and momentum forecasts; therefore, an ideal approach to the development of these types of strategies should include:

A leadership team project sponsor

An experienced “hands-on” strategy development project leader with sector/subject matter understanding

The establishment of a ground-up internal working group, with appropriate subject matter representation from across the organisation along with financial analyst and business intelligence/data capabilities

A challenge team comprising selected leadership and operating teams as well as industry and subject matter-specific independent representation

Board, leadership team, and project sponsor engagement at key points through the process

Strategy development sequencing to start with each line of business, followed by each division, and then a group-level overlay

A clear approvals pathway

A 10–12 week development and approval timeframe, depending on organisational size and complexity

Once the strategy has been developed and approved, the next and most important challenge will be around how best to engage with and align investors, lenders, leaders, and the team to deliver.

Ground-up strategy development will be key during 2023.