Case Study: How to Review Your Strategy with Foresight.

case study

21 Jan

Executive Summary.

A technical services company, facing the dual challenges of unsustainable growth strategies and increasing market complexity, sought to revitalise their approach through a robust foresight process. This comprehensive initiative included STEEP analysis, surveys, foresight workshops, and the development of design fiction narratives. By tackling these challenges head-on, the company generated critical insights, open conversations, and a roadmap to monitor emerging trends, catalyse innovation, and unlock new business opportunities. These foresight-driven actions poised the organisation to adapt confidently to change, spurring greater alignment between strategic goals and market realities.

About the Client.

Operating within multiple highly competitive markets, the company had achieved past growth through a series of mergers and acquisitions. With an established reputation and focus on technical services, they catered to stable but shifting customer demands. However, intensifying price competition, coupled with the unpredictable pace of industry and technological changes, placed significant strain on traditional strategies, threatening the company’s ability to meet its ambitious revenue targets.

Challenges

The company faced persistent hurdles that jeopardised its ability to achieve a 40% total revenue growth target within the next three years:

Saturation of Growth Channels: Previous revenue growth came largely from mergers and acquisitions. With limited remaining opportunities and declining profitability in these ventures, the focus shifted to organic growth. However, relying on price-driven bidding in highly competitive markets resulted in declining margins and increased operational strain.
Capability Gaps and Misalignment: Stretching business activities beyond core competencies weakened operational efficiency. This lack of alignment exacerbated delivery challenges, making long-term growth strategies harder to sustain.
Unpredictable External Factors: Rapid changes in consumer behaviour, industry disruptions, and evolving markets created an uncertain future, diminishing confidence in the current strategy’s viability.

The executive team recognised the need to address these challenges by asking the pivotal question,

“If the world around us is changing, how do we need to change?”

Solution:

To revitalise strategic thinking, the company implemented a structured foresight process encompassing five critical stages.

Stage 1: STEEP Analysis.

The foresight team conducted a STEEP analysis using the Futures Platform™ database, examining societal, technological, economic, environmental, and political trends. This helped pinpoint external influences likely to shape the company’s future.

Stage 2: Executive and Leadership Team Survey.

A foresight radar and collaborative tools enabled key stakeholders to assess 40 emerging change and trend data points. These were rated for alignment with current capabilities and strategic objectives. The survey ensured widespread engagement, fostering diverse perspectives across teams.

Stage 3: Foresight Workshops.

To deepen understanding, workshops facilitated dynamic discussions around survey findings. Combining brainstorming with group exercises, these workshops encouraged participants to identify potential disruptions and opportunities, generating actionable insights.

Stage 4: Scenario Parameters.

Data from the survey and workshops were consolidated, creating clear change drivers. These became the foundation for scenario parameters, visualising various plausible futures and their implications for the organisation.

Stage 5: Design Fiction Narratives.

The scenario parameters informed the creation of detailed design fiction narratives. The process included a dedicated workshop with the strategy team, where participants developed story arcs and character personas to envision the company’s role in potential futures. These scenarios were later utilised to stress-test the current strategy, identifying gaps and uncovering opportunities.

Results:

The foresight process yielded transformational outcomes, empowering the company to proactively anticipate change rather than respond reactively:

Enhanced Perspectives and Insight: By engaging employees from diverse areas of the business, the process introduced fresh viewpoints and richer insights. Cross-functional conversations flourished, breaking down silos and improving alignment.
Stronger Strategic Frameworks: The design fiction narratives created new ways to evaluate and stress-test the strategy. Through a mix of qualitative and quantitative analysis, the company unlocked opportunities that were previously overlooked.
Initiatives to Monitor Change: A prioritised list of emerging trends and phenomena was established to guide ongoing evaluation of external factors. This built agility into the company’s strategy, enabling it to pivot swiftly in response to change.
Innovation Pipeline Development: Workshops generated new ideas for product and program concepts, fostering excitement within the innovation teams. These ideas were thoughtfully prioritised for inclusion in project pipelines, ensuring structured execution.
Business Growth from Core Capabilities: By identifying adjacent markets suited to the company’s existing strengths, the foresight process revealed untapped opportunities for business expansion.
Capability Building for Transformation: The process examined which new organisational capabilities were required to adapt and thrive in evolving market conditions, positioning the company for sustained success.

Key Takeaways:

Foresight as a Growth Enabler.

The case study underscores the vital role structured foresight processes play in reinvigorating strategy amidst uncertainty. By framing challenges through robust analysis and creative exploration, the organisation shifted from reactive decision-making to proactive opportunity-seeking.

Benefits Gained.

Stronger Strategic Alignment: Stakeholder engagement across teams fostered a united and future-focused leadership approach.
Proven Methodology: Backed by academic-grade data and credible foresight tools, the outcomes were both credible and practical.
Adaptive Organisational Mindset: Fresh concepts for products, programs, capabilities, and markets reflected a forward-looking agenda.
Sustainable Competitive Positioning: Equipping leadership with tools to monitor and adapt to rapid changes ensures resilience.

By anchoring their strategy with foresight methodologies, the company created a compelling blueprint for future adaptation and growth. The initiative successfully demonstrated how structured methodologies can unlock untapped potential and equip businesses to thrive in a fast-evolving world.