1 MINUTE SUMMARY OF: GEOSTRATEGY BY DESIGN | WITOLD HENISZ
Develop a strategy to navigate geopolitical turmoil
WHY READ THIS
Creating a geostrategy is fast becoming a must-have for organisations.
IN BRIEF
A shift in the business environment has disrupted supply chain operations, requiring similar adaptation to address a changing geopolitical landscape. Companies need to be aware of political factors that might impact their bottom line. Here’s how to navigate the complexities of making this connection.
KEY FINDINGS
Embedding political data to guide decision-making. This is particularly important given the vast quantity of information available. The next step is to translate data into actionable insights for appropriate leaders, indicating its specific relevance to them. Consideration needs to be given to how a political identity will impact customer purchases, as this is becoming more prevalent in recent years. Approaches to building political resilience will vary significantly depending on geographic location. Managing a geostrategy effectively is a complex task, despite the relatively simple four steps of scanning, focusing, managing, and strategising. Linking all this to politics is where it gets complex, requiring the formation of the right cross-functional team.
Establishing an optimal cross-functional team for geostrategy. Traditional approaches to developing external affairs strategy have been to employ ex-government officials, but they often lack the ability to drive strategic change. It’s important for those who have ambition to move up into the C-suite to have been rotated through government affairs. These rotations help to put political risk management in the centre of strategy. The rise of digital has also created greater visibility into what is shared in conversations, as information can be readily broadcast. This means that trust is vital, but also adds a required layer of skills to navigate the digital world that hasn’t been needed previously.
THE BOTTOM LINE
Organisations need to develop a geostrategy. This shouldn’t be thought of as an extra, but as a core element of the wider company strategy. Careful consideration should be given to both the governance and design of geostrategy, evaluating how it will be embedded in all aspects of the business.
