Abstract: There is much talk today about becoming a “strategy focused organization.” But is this the right approach in an increasingly unpredictable world in which major events such as terrorist attacks, environmental disturbances or rapid market movements can disrupt or derail any carefully crafted strategy? Focusing too much on strategy and not enough on flexible response can be a recipe for disaster. The answer, as this paper explains, is to set a strategic direction but have the capability to change quickly in response to emerging events. This requires a less rigid planning process, more strategy capability in the hands of front line teams and performance management processes that support this capability.