Emergent Strategy in an Emerging Economy
Andrew Blaine, Member
In South Africa most small businesses fail in year 1(>90%). Also, most small businesses start as the result of our awfully high unemployment rate (>40%).
Most small businesses, in my experience, fail as a result of poor planning, of which strategic planning is a significant component. The major planning flaw lies in a poor understanding of the "end state" philosophy - most people start businesses but have no idea where they are headed - "Beach Bum Business". I spend my time trying to inculcate an alternate planning philosophy where:
1. The "end state" is identified described in some detail;
2. Planning is sufficiently flexible to cater for selection of opportunities that fit into the overall "journey to the goal".
3. The driver realises that the only guarantee they have is that reality will not match the plan, but the plan will give them a framework within which they can operate.
How's that for different?