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Has AI Killed Long-Term Strategic Planning?

future-proofing for continued success Sep 27, 2025
Long-Term Strategic Planning with The CHC Planning Loop

When I began my career in Strategic Planning at General Motors, the discipline was built around 10-year roadmaps. Organizations invested months producing thick binders and glossy decks that laid out “future states” designed to withstand time. The underlying assumption was simple: if we projected far enough and stayed the course, the plan would hold.

Today, the rise of artificial intelligence (AI) has disrupted that assumption entirely. Markets shift in weeks, not years. Consumer demand signals change with every algorithmic advance. Leaders are now asking a fundamental question: Has AI made long-term planning obsolete?

The evidence suggests otherwise. Long-term planning is not dead—it has simply evolved. According to PwC’s 27th Annual Global CEO Survey, nearly 40% of global CEOs believe their companies will not be viable in 10 years if they continue on their current path (PwC, 2024). Yet research from McKinsey shows that companies with a long-term orientation achieved 47% higher revenue growth and 36% greater earnings growth between 2001–2014 (McKinsey, 2017). Investors echo this sentiment: 70% believe companies should prioritize long-term initiatives, even at the expense of near-term profits (PwC, 2025).

In short, AI has not killed long-term planning. It has killed static planning.

Why Static Strategy Fails in the Age of AI

Traditional strategic planning often suffers from three weaknesses:

  • Over-reliance on annual cycles: Static plans quickly become obsolete in volatile markets.
  • Inflexible capital allocation: Resources remain tied to initiatives that no longer deliver growth.
  • Strategy-execution disconnect: Plans exist on paper but fail to translate into operating discipline.

AI accelerates all three problems. Demand signals shift rapidly, competitive advantages erode quickly, and new opportunities appear unpredictably. Leaders cannot afford to wait for the next annual planning cycle to adjust course.

The CHC Planning Loop: A Dynamic Model for Long-Term Success

To address these challenges, organizations need a planning framework that combines long-term vision with short-term adaptability. One such model is the CHC Planning Loop, an integrated approach that reframes strategic planning into a continuous operating system.

Choices: Refreshing the Strategy Cascade

Leaders must regularly revisit five foundational questions:

  1. What is our winning aspiration?
  2. Where will we play?
  3. How will we win?
  4. What capabilities are required?
  5. What management systems support execution?

This “strategy choice cascade,” popularized by Harvard Business Review, ensures that long-term vision remains relevant even as market dynamics change.

Horizons: Balancing Capital and Talent

McKinsey’s “Three Horizons of Growth” model offers a disciplined way to balance investments:

  • Horizon 1 (H1): Strengthen today’s core business.
  • Horizon 2 (H2): Incubate emerging adjacencies.
  • Horizon 3 (H3): Create options for the future.

The allocation across these horizons should be revisited quarterly. For example, many organizations today are funding AI pilots within H2 while continuing to invest in stable H1 operations.

Cadence: Rolling Forecasts and Scenario Triggers

The final component is cadence. Rather than annual reviews, organizations should operate on rolling 12–18-month forecasts updated monthly. Leaders should also define scenario triggers—leading indicators such as demand shifts, win rates, or customer acquisition costs—that automatically prompt resource reallocations. This ensures planning becomes dynamic, not episodic.

Together, Choices, Horizons, and Cadence form a loop that keeps strategy alive and future-oriented.

Real-World Application: From Static to Adaptive Planning

Consider a mid-sized services organization that approached me during a market shift. They had invested heavily in legacy offerings, but customer demand was moving toward AI-enabled solutions. Their annual budget process left them underfunded in the very areas where growth was possible.

By adopting the CHC Planning Loop, the company reset its strategic choices, clarified its value proposition in the age of AI, and reallocated 20% of capital into new initiatives. Rolling forecasts with scenario triggers allowed leadership to pivot quickly when early results exceeded expectations. Within six months, they shut down underperforming projects, doubled investment in emerging opportunities, and regained a clear path toward sustainable growth.

The lesson was clear: AI did not destroy their long-term plan. It forced them to make it dynamic.

Actionable Takeaways for Leaders

  • Abandon static planning cycles. Replace them with rolling forecasts and scenario-based triggers.
  • Revisit your strategic choices quarterly. Ask whether your aspiration, markets, and capabilities still align with reality.
  • Balance across horizons. Ensure resources are allocated not only to today’s core, but also to adjacencies and future options.
  • Integrate adaptability into culture. Long-term resilience depends on embedding flexibility at every level of the organization.

The Changing Landscape of Strategic Planning

Long-term planning remains one of the most powerful levers for creating sustainable value. What has changed is the cadence and discipline with which it must be applied. In an era defined by AI and volatility, leaders who institutionalize continuous planning loops will outperform those who rely on static forecasts.

The future belongs to organizations that can hold a long-term vision while executing with short-term agility.

Sam Palazzolo, Principal Officer @ The Javelin Institute

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