Trends in Strategic Planning for 2024
Emphasis on GRC and strategic alignment, with limited application of AI: The Biased View of a Strategic Planning Software Vendor on Strategy-Related Trends in 2024.
1. Increasing Role of GRC (Governance Risk and Compliance)
In 2024, we anticipate increased emphasis on GRC (Governance Risk and Compliance) with a more explicit identification of stakeholders and their needs.
This shift is particularly influenced by the introduction of new Sustainability Reporting standards in Europe and similar legislation in other countries. While stakeholder definition is not a novel concept (for example, it is incorporated in each ISO standard), the emphasis has increased due to the sustainability reporting standards.
2. GenAI Won’t Replace Strategists
Contrary to many predictions for 2024, the expected disruption from GenAI is unlikely to happen in the domain of strategic planning. The complexity of tasks and the absence of structured data for training limit its application in this field.
However, we anticipate AI being used more for specific challenges such as scenario planning, external factor identification, and strategy design for educational purposes.
If you plan to address these use case scenarios, ensure you implement a proper AI governance framework.
3. More Alignment Required by Investors
High-interest rates are prompting organizations to prioritize strategic alignment. There is a growing demand for the automation of strategic alignment processes, specifically in demonstrating how new proposed strategies support overall objectives.
Spreadsheet-based strategies are proving inefficient in meeting these demands, leading to an increasing trend towards specialized software, which we expect to continue in 2024.
4. Supply Chain and Business Continuity Planning in Focus Due to Extreme Weather Events
The increasing frequency of extreme weather events has sparked a growing interest in templates for supply chain strategy and, more broadly, business continuity planning.
While there is a surge in activity in this domain, it remains largely focused on short-term planning. At the same time, companies are showing a willingness to support local initiatives against climate change at the community or city level.
5. Better Alignment of Cybersecurity with Risk Management
Cybersecurity will continue to be a significant trend in 2024, not surprising given the increased number of security breaches in 2023. In contrast to the challenges presented by climate change, where prevention is complex, cybersecurity threats can either be prevented or have their effects minimized.
While vendors specializing in specific security solutions play a crucial role, from a strategic planning perspective, we observe a growing demand for general risk management. Specifically, with the focus on policies and procedures, aiming to facilitate collaboration among involved parties.
With the mentioned trends in mind we are improving our strategic planning tool. The Strategy Implementation System is an article on Medium where I connect the dots about strategic planning.
