The BoardPro webinar, ‘Adaptive Strategy: The Changing Paradigm of Management Thinking,’ examines the critical shift in the boardroom, where traditional strategic planning methods are no longer sufficient. In today’s unpredictable environment, it’s time to rethink how we approach governance, particularly in the face of complex challenges. This article reflects on the discussion from that webinar on how adaptive strategy offers a more flexible and responsive way to manage uncertainty.
Why Traditional Strategy is Losing Ground
For decades, the playbook of strategic planning was straightforward: set long-term goals, map out a path, and stick to it. That model worked well enough when markets were more predictable, and change occurred at a manageable pace. But the assumption that we can plot a linear course through an unpredictable world has started to fray.
Take the Christchurch earthquake as an example. When faced with rebuilding a city from the ground up, it became immediately apparent that traditional, step-by-step plans couldn’t capture the situation's complexity. There was too much uncertainty, variables, and outcomes that couldn’t be foreseen. This marked a turning point in how to think about strategy. Instead of imposing a fixed solution, the process needed to be flexible and adjust based on new information.
This experience shaped the concept of adaptive strategy. It’s not about having all the answers upfront but about moving forward with a mindset that embraces uncertainty and complexity. Instead of following a rigid plan, adaptive strategy allows organisations to learn and pivot as they go. This approach is particularly important for boards and governance professionals, who are often tasked with overseeing an organisation’s response to rapid change.
Adaptive Strategy: A Framework for Uncertainty
Adaptive strategy is rooted in the understanding that no one can predict the future with certainty. Instead of a traditional strategy that moves from one fixed point to another, adaptive strategy involves taking smaller steps, experimenting, and learning from real-time feedback.
What does this look like in practice? Instead of trying to control the outcome of every decision, boards focus on setting a general direction with the encouragement to test ideas and adjust based on what works. In adaptive strategy, there’s no single, predetermined path—each step informs the next.
This is where sense-making comes into play. It’s about gathering information, interpreting what’s happening in the environment, and using that knowledge to shape the next move. Sense-making isn’t a one-time event—it’s ongoing, and it’s how organisations remain flexible in the face of uncertainty. By continuously gathering data and adjusting course, they become more resilient and better equipped to handle unpredictable challenges.
Re-thinking the board’s role
One of the key messages from the webinar was that the role of boards is evolving. No longer is governance just about oversight and compliance—it’s about creating the right conditions for an organisation to adapt and thrive. This means encouraging experimentation, supporting calculated risk-taking, and making space for failure.
Leadership is critical here. For adaptive strategy to work, boards need to move away from the idea that success comes from controlling every outcome. Instead, leaders need to empower their teams to explore different paths and act on the feedback they receive. This shift requires a different kind of leadership—one that values curiosity, agility, and a willingness to change course when necessary.
In this regard, Paula Steed from the Guardians of New Zealand’s sovereign wealth fund shared valuable insights during the webinar. Her organisation adopted an adaptive strategy approach to manage the fund, acknowledging that they couldn’t predict market shifts with certainty. Instead, they focused on being opportunistic and responsive, making decisions based on what the markets were telling them in real-time. This level of adaptability has been critical to their success, allowing them to navigate uncertainty while staying aligned with their core objectives.
Building Adaptive Capacity
For boards to embrace adaptive strategy, they need to cultivate a culture that encourages exploration. This doesn’t mean taking reckless risks—it’s about creating safe environments where teams can experiment, learn, and iterate. One way to start is by building informal networks within the organisation, where people from different departments come together to test new ideas and share their findings.
This kind of cross-functional collaboration breaks down silos and encourages innovation. It also helps build adaptive capacity—the ability of an organisation to respond to changes quickly and effectively. Adaptive capacity isn’t just about having the right processes in place; it’s about fostering a mindset that embraces uncertainty and is always looking for opportunities to learn.
In some cases, this might mean finding internal champions—people within the organisation who are already thinking in adaptive ways and supporting them in pushing those ideas forward. These champions can serve as role models, showing others how to embrace a more flexible and responsive approach to strategy.
Balancing Traditional and Adaptive Strategies
It’s important to note that adaptive strategy doesn’t completely replace traditional approaches. In some cases, such as when an organisation has a high degree of confidence in its outcomes, traditional planning might still be appropriate. The key is knowing when to use which approach.
For example, core operations that are well understood and predictable might benefit from a more traditional strategy, where the future is more certain. But for areas of the business that are more uncertain or subject to rapid change, adaptive strategy provides the flexibility needed to stay responsive. Stephen’s insight was clear—organisations don’t have to choose between traditional and adaptive strategies; they can use both, depending on the context.
Looking Ahead
The conversation around adaptive strategy is becoming more urgent as organisations face increasing complexity and uncertainty. For boards, this means rethinking not just how strategy is formulated but how they lead and govern. By embracing adaptive strategy, boards can help their organisations become more resilient, more agile, and better equipped to handle whatever the future brings.
This approach isn’t just theoretical—it’s practical. For boards willing to adopt this mindset, the benefits are clear. Adaptive strategy enables them to move beyond traditional thinking and engage with the complexity of today’s world in a way that’s flexible, responsive, and sustainable.
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