Long-term business planning is losing ground among UK companies, according to new research from Menzies, as leaders contend with the demands of a fast-changing and unpredictable environment.
The accountancy practice surveyed 500 senior business leaders and found that 55% of businesses do not maintain a long-term strategy of five years or more that is reviewed regularly
The findings suggest that structured strategic planning is not firmly embedded across much of the UK business base. Some 15% of respondents said they rely on short-term reactions rather than formal planning. A further 7% said they could not say when their last formal strategy session had taken place.
The research also points to limited use of tools designed to test business plans against changing conditions. Only 38% of companies said they regularly challenge their strategy through scenario modelling or ‘wargaming’. Nearly 32% said their plans are reviewed by external advisers such as investors, banks or non-executive directors.