Is It Time to Pivot Your Strategy?

One of the only certainties of management is that all projects and strategies will, at some point, require a pivot or course correction. New technologies emerge, competitors do the unexpected and plans are never perfect. That’s why agility and rapid adaptation are such critical leadership skills (as long as they are exercised, as I’ve written previously, with a focus on changing the means to achieve the goals, but not the goals themselves).

But how do you know that implementing the change you are contemplating is indeed the right thing to do — that it will help you achieve the goal faster or more effectively? Pivots should not be undertaken lightly. The risks of getting them wrong can be substantial: You could send your team in an unproductive direction, wasting time, resources and engagement, with little benefit; you could delay the achievement of your goals; and you could squander the confidence of your senior stakeholders in your ability to deliver.

Based on my experience as a strategic adviser to growing and innovative firms, I’ve found that there are three specific “pivot questions” you can ask yourself up front to make it more likely that your choice to course correct is the right one. Of course, you should also examine your options on their own merits, but these questions have to do with why you are contemplating a pivot in the first place. That’s because some common reasons for change can cloud your judgment and lead to a poor choice.

I’ll go through these common reasons and the pivot question for each, and how each one can help shape your next steps as a leader.

POOR EXECUTION

Question 1: Are you changing course because the strategy needs to change — or because execution has been poor?

In my experience, the success of a project or a strategic initiative, whether large or small, is a function of the soundness of the plan and the quality of its execution. Great plans can fail because they are not executed well, just as the best execution may not salvage a poor strategy. But when things aren’t going well, it’s often not clear whether the strategy is askew or the execution is poor — or if it’s some combination.

To identify which it is, take the time to ask yourself (and other stakeholders) where they see the flaws: Did you make some assumptions about the strategy that don’t seem to be holding true? Are there elements of the strategy that had not been tested previously and may need to be reexamined? Does the strategy need to be modified to fit your organization’s culture? The answers to these questions might lead you to rethink the strategy. On the other hand, also ask yourself whether your team has the right skill set and sufficient bandwidth to carry out the strategy, and whether they are truly committed to making it happen. This can help you identify that execution is the issue.

Asking these questions can lead you to difficult decisions — it can seem easier to pivot a strategy than hold individuals accountable, coach them to perform better or replace them on the project if they aren’t doing well. But sometimes that’s necessary.

OUTSIDE PRESSURE

Question 2: Are you changing course because of outside pressure or impatience rather than a true assessment of whether you are on the right track?

Often critical projects or strategic programs live under a microscope. Their importance makes stakeholders, particularly senior ones, anxious to see results. This can often create pressure to do something, anything, to respond to their concern — whether it is the right thing or not. And the more you hear questions like “can you go faster?” and “why can’t we just do what company X is doing?” the more you might start to doubt elements of the plan, which could lead you down the path of making an unnecessary pivot. But this can create significant churn and either send the project off course, or waste everyone’s time by giving the appearance of changing without really doing so.

The key here is to take a hard look at whether the issues being raised by stakeholders are valid, or whether you have the courage to say that your plan is sound and that you stand by it.

SHINY NEW OPPORTUNITY

Question 3: Are you changing course because of a new opportunity, rather than a conviction that the current strategy is inadequate?

One of the consequences of a fast-moving environment is that new opportunities are always arising that could potentially affect your plans. For example, the emergence of gen AI might offer a new way to get something done, or you may uncover a resource you didn’t know about that could be helpful. When these new opportunities emerge, however, consider whether they will actually increase the likelihood or speed of reaching your end goal — or whether they are just shiny new toys that are interesting but won’t make much of a difference.

Of course, some opportunities might indeed be worth pursuing in the long run, but unless you have unlimited resources, you probably can’t continue with your current strategy at full-bore and take on something new. In some cases, the appeal of doing something new might actually divert or distract you and your team from the specific goal you are trying to attain.

So if you think that the plans already underway will indeed get you to the goal, then ask yourself why you want to make the change. Will the payoff be so much greater or faster? Or will the opportunity be so exciting that it’s worth risking the more certain path?

For example, a division of a data analytics firm was just starting to generate profits by focusing on data streams that could be provided to mid-sized accounting and legal firms. While pursuing this strategy, a high-profile Silicon Valley company approached the head of the business about providing real-time data for a new wearable device that they were developing. If successful, this venture would increase profitability manyfold — but it would also require shifting resources quickly to wearables and away from the accounting and legal fields.

Given the profit potential that could be generated, and publicity associated with a “hot” Silicon Valley venture, the business head grabbed the new opportunity. To do so, he had to reallocate resources so that there were fewer people working on the accounting and legal data streams. After 18 months, however, the tech company canceled the device project because of weak market demand, and the business head refocused his team on the original strategy — which still produced results, but months later than the original projections.

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There’s nothing wrong with changing course on a project or strategic initiative; agility is critical to project success. Make sure, however, that you are pivoting for the right reasons. Otherwise your course corrections may steer you in the wrong direction.