The Japanese have been well known to set long term, 250 year strategies.

When managers set long term strategies (perhaps not the same extent as the Japanese), they are often criticized for thinking too far ahead. Is a 25 year strategy or more too long?

The answer will vary depending on the products and market segments.  It is beneficial to have long term, forward thinking strategy, clearly outlining where you want to be in 'x' number of years time.

The issue that may arise however, when management continue to grind away without checking whether they are staying true to their strategy… is the changing environment causing the strategy to drift off course?  Is the company following the correct path to reach its long term goals?

Creating long term strategy gives an organization something to achieve and aim for.  However, strategy should never be set in stone, especially in today's environment where the exponential rate of change makes concrete strategy, possibly only set last year, out of date and void within 12 months.  Let's explore the example of a manufacturer of fast moving consumer goods.  Should they set a long term strategy and keep following the path they are on, hoping that their products will remain relevant and that their customers will still be there tomorrow?   Realistically and unfortunately the truth is that things do change and 'innovation' may be the only reliable strategy.  Changing consumer tastes, changing fashions and trends will influence what, how and when people buy.  The result .... Direct impact on the product sales, company, employees and margins!   If management decide to remain unresponsive or don't reevaluate strategic options, competitors will seize the lead, market share and profits!  IBM in the '90's was a great example of a company losing their way. 

This raises the question of how often should you revisit strategy.  Rather than setting a calendar point to revisit strategy, strategy should be revisited constantly – revision and checking should be inclusive of the strategy itself.  Employees will need to be aware of the role they can play in strategy development and maintenance.  Every employee becomes the eyes and ears to change – furthermore, people's views and opinions from various levels within the company should be obtained. The effect of the strategy, the direction, strengths and weaknesses, and required changes should be shared and validated.

In order to accommodate and take advantage of 'change', a strategy should be flexible. This requires that the evolving needs of a volatile marketplace and economy be accommodated in a disciplined way, consistent with the overall vision and objectives of the company.  This requires the management skill of 'strategic thinking'.

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