Introduction
Many businesses struggle with strategy execution, but what are the root causes of this problem? A recent study looked at this question in detail and found that four main factors are responsible for businesses struggling to implement their strategies. These factors are a need for more clarity about the strategy, a lack of ownership and responsibility for execution, employee engagement and commitment, and leadership support.
There is a high rate of failed strategy implementation. Research indicates that 70%–90% of strategic change initiatives seldom get off the ground. While many factors contribute to failed attempts, the execution of the strategy itself is always to blame. That may be an accurate assessment in many cases, but it only tells part of the story. Even though it might be embarrassing to admit it, sometimes the problem is not in how the strategy is delivered or implemented but in how it was formulated in the first place.
But what are some of the most common root causes of strategy execution problems?
The most common root causes of strategy execution problems are lack of leadership commitment, inadequate planning, and ineffective communication. Even though several things can cause these problems, they often happen when the business’s strategy and day-to-day operations are not aligned.
They can be traced back to the top management team’s failure to develop a clear and actionable strategy, explain it to the rest of the organization, and ensure everyone is working towards the same goal.
And what are some best practices for ensuring successful strategy execution?
There are a number of best practices that can be followed to ensure successful strategy execution. The most important is ensuring that everyone in the organization understands and buys into the strategy, including top management and front-line employees who will carry out the plan.
It is also important to have a clear and concise plan that is easily understood by all and to regularly communicate the plan and progress updates to all stakeholders. Also, it’s essential to have the resources available to carry out the implementation of the strategy.
Here is a high-level checklist of the four most important things that should be done to fix problems with the way strategy is being put into place:
- Ensure that the business’s leaders establish clear strategic directions.
- Ensure that you have an effective strategy, culture, and structure in place.
- Develop a sound strategy, performance metrics, monitoring tools, and communication channels.
- Ensure that you have sufficient funds to meet the strategy’s expenses.
Lastly, Sir Winston Churchill made a profound quote on the difficulty of putting a company’s strategy into action: “However beautiful the strategy, you should occasionally look at the results.”
About the Author:
Loay Dirar, educates, writes, and advises on strategy development and implementation, as well as change management and risk management for major regional organizations in the Middle East and North Africa. He has 19 years of management experience, including ten years as a manager in multinational subsidiaries of organizations based in the Middle East and North Africa (MENA).
