UK firms ditch long-term strategy as volatility takes hold - London Business News | Londonlovesbusiness.com

More than half of UK businesses do not maintain a regularly reviewed five-year strategy. Many leaders rely on reactive, short-term responses, and some are unsure when a formal strategy session last occurred. Only 38% regularly stress-test strategies using scenario modelling or “wargaming,” and only 32% routinely review strategies with external advisers such as investors, banks, or non-executive directors. Despite these gaps, many businesses identify needs for cloud-based financial modelling tools, real-time forecasting systems, and clearer long-term vision or roadmaps. A tension emerges between the demand for agility during instability and the strategic clarity associated with long-term growth planning.

"A survey of 500 senior executives commissioned by Menzies LLP found that more than half (55%) of UK businesses do not maintain a regularly reviewed five-year strategy. Instead, many firms are driven by immediacy rather than direction. Fifteen per cent of leaders admitted they rely primarily on reactive, short-term responses rather than structured planning, while 7 per cent said they were unsure when their organisation last held a formal strategy session."

"The findings suggest a widening gap in corporate planning discipline, with only 38 per cent of companies regularly stress-testing their strategies through scenario modelling or "wargaming". Even fewer—just 32 per cent—said their strategies are routinely reviewed by external advisers such as investors, banks or non-executive directors, raising concerns about oversight and resilience."

"Almost 40 per cent said cloud-based financial modelling tools would improve agility, while 36 per cent pointed to real-time forecasting systems. More than a third (35 per cent) said they need a clearer long-term vision or roadmap to guide day-to-day decisions. The results highlight a growing tension in UK boardrooms: the demand for agility amid instability versus the strategic clarity traditionally associated with long-term growth planning."

""The long-term plan isn't dead - but the five-year spreadsheet that gets dusted off once a year certainly is. "Today's environment, many firms are drifting towards short-term planning because it feels more practical. But without a longer-term strategic lens, businesses risk driving in the rear-view mirror - losing direction, growth and the very agility they need to build in to be able to adapt tod""

Read at London Business News | Londonlovesbusiness.com