The strategy retreat has become a common ritual for formulating strategy over time, although being widely used, it is ineffective.
According to Jeroen Kraaijenbrink a strategy and leadership consultant, “Once every year, the leaders of a company go to a nice hotel for a day or so. During that day, they do some serious work in the morning, at least including post-it notes, and in the afternoon, or the next day, there is a fun team-building exercise.”
This, he says, the idea that strategy can be effectively made in this way is attractive. It makes strategy-development a fun and contained activity that doesn’t interfere with business as usual. But it doesn’t work, for these five reasons:
- It disconnects strategy from everyday business. What is presented as a key strength that they are held off site is actually a weakness. It literally disconnects strategy from normal business and thereby makes strategy something extraordinary, which or shouldn’t be.
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- Not everyone who should can be there. Strategy retreats create a divide between those who are there (the elite) and those who are not (the rest). There is already a big gap between strategy and execution, and by taking one group of people elsewhere to discuss strategy, this gap is enlarged.
- It is based on an illusion of knowledge. When you think about it, it is pretty absurd to assume that strategy can be made in one or a few days by a select group of people sitting in a room. Effective strategy-making requires constant interaction with the outside world to listen and see, as well as to experiment and learn.
- Good ideas don’t just pop up. Offsite are based on the idea that the best ideas come from short brainstorms and pressure-cooker workshops. While inspiring and fun, the best ideas usually don’t come up like that. They gradually build up over time and with experience.
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- Strategy is a continuous process, not an event. Offsite suggests that strategy-making is an event, with a clear beginning and end. Making sure that your strategy is up-to-date on an ongoing basis, as well as executed effectively, requires a continuous approach. Retreats don’t provide that.
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