From Fixed Plans to Flexibility: How Danish Companies Adapt to Global Uncertainty

Donald Trump's return to the White House marks a new era of geopolitical turbulence, where predictability has become a rare luxury. In Denmark’s small, open economy, companies face immense pressure, from supply chains to export markets and green energy. Danfoss and Grundfos have long relied on Chinese suppliers—a strategy that was both rational and cost-effective until the world changed. For Danfoss, this now means investing in production facilities closer to home, while Grundfos is exploring suppliers in Eastern Europe and India. It’s a costly but necessary adjustment.

For Arla and Lego, tariff barriers of up to 25% mean finding alternative markets has become essential. Diversification is no longer an option—it’s a necessity.

Meanwhile, Ørsted, which has positioned Denmark as a global leader in green energy, faces significant risks due to Trump’s negative stance on climate agreements, including his withdrawal from the Paris Accord. These challenges persist even as the overall market for green energy continues to grow.

In today’s world, change is the norm, and traditional 3–5-year strategies have become relics of a more predictable era. Modern strategic planning must shift from rigid, long-term frameworks to dynamic, flexible approaches capable of adapting to sudden shocks. Put simply: Traditional tools like Gantt charts struggle to survive in a world that evolves faster than they can be drawn. This is why "layered planning," where quarterly goals, monthly adjustments, and weekly reflections interconnect, is gaining traction. Layered planning may sound like something out of a textbook, but in an unpredictable world, it’s a practical approach that helps businesses balance the big picture with the details.

Originating from agile management and lean principles, layered planning gained popularity in the 2010s through consultancies like McKinsey. Inspired by military strategy and scrum models, it breaks goals into adjustable layers—perfect for complex, rapidly changing environments.

Unlike traditional strategies, which often resemble fixed roadmaps, layered planning is designed to be dynamic. It breaks ambitious goals into flexible steps that can adapt to real-time conditions.

And it works: A Harvard Business Review study shows that layered planning can increase operational flexibility by up to 30%. It’s about combining strategic foresight with the ability to pivot quickly in response to geopolitical shifts.

In practice, layered planning starts with quarterly plans that serve as the company’s compass. These define overarching goals and allocate resources to key milestones. Ørsted, for example, works in broad phases for its wind turbine projects—from securing permits to establishing partnerships and construction—always leaving room for adjustments.

Next come monthly check-ins, where progress is evaluated and risks are managed. If a supply chain becomes unreliable or a market shifts, the course is adjusted promptly. Finally, weekly reflections focus on specific tasks and short-term adaptations.

The beauty of layered planning lies in how these layers work together. Quarterly plans provide strategic direction, monthly check-ins ensure risk management, and weekly reflections turn plans into action. It’s like combining a telescope with a magnifying glass—you can see both the horizon and the immediate details.

Layered planning is gaining ground because it offers a simple solution to a complex world: constant adaptability. The goal is no longer to avoid the storms, but to navigate them with skill and resilience.