A strategy does not live in documents – it comes alive through everyday actions. The new Strategic Renewal 2025 study explores how strategy becomes reality when competence and capabilities are placed at its core.
Strategy, change management, and competence renewal are cornerstones of organisational success – yet achieving them is often more challenging than we would like to admit.
We know that change initiatives frequently fall short, and strategy can easily feel abstract or disconnected from daily work.
In collaboration with Hanken, we conducted a multi-company case study to explore how identifying strategic capabilities and competences can enhance companies’ strategic readiness and support both organisational and individual renewal.
Our Strategic Renewal 2025 research is grounded in effectuation theory,* commonly used in entrepreneurship studies but equally insightful for large organisations navigating constant change. Unlike traditional strategy implementation approaches – which start from a desired end state and work backwards – effectuation begins with existing resources and evolves flexibly along the way.
We observed the same phenomenon among the companies in our study: execution starts from current resources and adapts as the journey unfolds.
Strategy becomes reality through action – not planning
Today’s organisations must do more than simply react – they must renew themselves proactively and continuously. Our study illustrates how leading competences and capabilities operationalises strategy and strengthens an organisation’s ability to shape its future. Strategy, in this sense, is not a static plan designed by leadership, but a shared journey towards the future – one that involves everyone.
Based on our findings, we highlight three practical ways to better lead an organisation towards growth and the future:
- Building growth together is the engine of change
Our research shows that involving a broad group of people in defining strategic capabilities and competences is not only a matter of engagement – it is an effective way to lead change. When people feel ownership and understand how their contribution creates value, change and growth become a genuinely shared effort. - Developing strategic capabilities is more than a single development project
Capabilities define how an organisation creates customer value and responds to market changes. When identifying and developing them is truly tied to business goals, it becomes more than a separate development initiative – it turns into a long-term way of building competitive advantage and sustainable growth.
- Renewing development discussions - meaning and mindset before KPIs
It is essential to focus on how each role contributes to business and growth. When people understand the significance of their work within the broader business context, intrinsic motivation and a genuine desire to develop emerge. Goals and KPIs, in turn, gain deeper meaning. Building the future is not only beneficial for the organisation – it also enhances individual value and competence. When change is seen as an opportunity, it becomes both appealing and sustainable.
Hanken & SSE Executive Education celebrates its 20th anniversary on 7 November 2025.
The celebration event will explore the evolution of leadership, discuss future leadership readiness, and present the Strategic Renewal 2025 report. You can download the report from our website after the event.
This study was conducted by Mari Tasanto, Pernilla Gripenberg, and Emilia Sainisalo in collaboration with researcher Violetta Khoreva.
*Sarasvathy, 2001; Matalamäki 2017
Hanken & SSE Executive Education
We transform academic research and the latest business insight into practice to accelerate the growth and renewal of people and organisations. We are owned by Hanken and Stockholm School of Economics (SSE). SSE is recognised by the Financial Times as a leading provider of Executive Education in Northern Europe. Our profits are returned to our owner schools for research purposes and to continue educating future economic leaders.
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