More than half of UK companies lack a regularly reviewed long-term strategy – survey

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.

When asked what would make their businesses more agile, respondents pointed to better forecasting tools and clearer strategic direction.

Cloud-based financial modelling tools were cited by 38% of business leaders, while 36% identified real-time forecasting software as helpful.

Another 35% said a clearer long-term vision or road map would improve agility, indicating that many businesses still see value in broader strategic direction when making short-term decisions.

Oliver Finch, partner at Menzies, said: “The long-term plan isn’t dead – but the five-year spreadsheet that gets dusted off once a year certainly is. In today’s environment, many firms are drifting towards short-term planning because it feels more practical. But without a longer-term strategic lens, businesses risk driving in the rear-view mirror – losing direction, growth and the very agility they need to build in to be able to adapt today.

“What businesses need is a hybrid approach – a clear long-term vision paired with the discipline to review, stress-test and adapt it far more frequently than they do today.”

Finch continued: “The firms that stall tend to be spending too much time looking backwards at data that is already out of date. When you move to live, three-way forecasting and keep it refreshed – ideally over a two-to-five-year horizon – you start making decisions on the future rather than reacting to the past.

“A sharper short-term view, reviewed monthly or quarterly, gives you the flexibility to course-correct without losing sight of where you are ultimately headed. Combine that with genuine external challenge from advisors, investors or non-executives, and you have the foundations of a hybrid plan that is both ambitious and adaptable.”