Strategy Is Partly Proactive and Partly Reactive

Strategy Is Partly Proactive and Partly Reactive

A company’s strategy is typically a blend of (1) proactive actions on the part of mana­gers to improve the company’s market position and financial performance and (2) as-needed reactions to unanticipated developments and fresh market conditions.

The biggest portion of a company’s current strategy flows from previously initiated actions and business approaches that are working well enough to merit continuation and newly launched managerial initiatives to strengthen the company’s overall position and performance. This part of management’s game plan is deliberate and pro­active.

Not every strategic move is the result of proactive plotting and deliberate management design. Things do happen that cannot be fully anticipated or planned for.

A portion of a company’s strategy is always developed on the fly. It comes about as a reasoned response to unforeseen developments.

Crafting a strategy involves stitching together a proactive/intended strategy and then adapting first one piece and then another as circumstances surrounding the company’s situation change or better options emerge – a reactive/adaptive strategy.