Identifying change drivers and developing strategy
Agencies should be embracing future and foresight work, not just for themselves but for clients too.
According to the Cambridge Dictionary, foresight is: “the ability to judge correctly what is going to happen in the future and plan your actions based on this knowledge.”
It’s why every management team wanting to stay in business should regularly conduct a strategic analysis of its market position. This means looking internally and then externally at the micro and macro forces that affect how (and in times of crisis whether) the company can continue to service client needs.
If change is the only constant, staying ahead of the drivers of change needs to be a management mission. It’s certainly a core part of what we bring to the non-executive director role at Wadds Inc., where we advise on company direction, helping to deliver external data, insight and objectivity to the Boardroom table.
What could the future look like?
There are several tools to help strategic analysis. The key to remember is that none offer a crystal ball but, by asking the right questions, help you understand market shifts you may need to respond to.
Aside from risk assessment being a clear part of the UK Corporate Governance Code, the Institute of Directors (IoD) says: “Success can be limited or enhanced by unexpected events both internally and externally.”
So, by knowing what to respond to and when, you can maximise performance, exploit opportunities and minimise risks as they arise. You also have a chance to evolve even before or as customers do by predicting latent demand.
Strategic issue tracking
The Three Horizons model is a useful resource and looks ahead at how strategic issues change over time.
Horizon One is the here and now and highlights issues usually central to current policy. Horizons Two and Three is where management teams should focus, looking at issues and faint market signals that are increasing in relevance over time.
The aim is to adapt organisational policy and strategy in advance of future need by identifying what is driving the change and reacting appropriately.
These Three Horizons overlap nicely with McKinsey’s Horizons, which take a company from extending its core business model, to building a market by developing new ones and creating new, more visionary options.
Futures and foresight work is a core skill for communicators
Creative agencies, like all organisations, have a multitude of choices when it comes to growth prospects, but this area is particularly pertinent as future and foresights work sits neatly within their services and capabilities. The work isn’t just valuable for the agency itself, but can help clients build resilience and growth too through the provision of this information.
The Role of Public Relations in Strategic Planning and Crisis Preparedness, a joint 2023 report from the IoD and Chartered Institute of Public Relations, states that when employed as management function, public relations can: “not just help businesses navigate economic and political turbulence, but also thrive and grow.”