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Monday, October 09, 2006

Why Strategy Execution Fails

Consider the following shockers about strategy execution:
  • 85% percent of management teams spend less than one-hour a month on strategy issues
  • Only 5% of employees understand their corporate strategy
  • 92% of organizations do not report on lead performance indicators.
What are the root cause reasons for failed strategy execution?

  • Lack of knowledge of strategy and of the strategy process.
  • No commitment to the plan.
  • The plan was not communicated effectively.
  • People are not measured or rewarded for executing the plan.
  • The plan is too abstract; people can't relate it to their work.
  • People are not held accountable for execution.
  • Senior management does not pay attention to the plan.
  • Strategy is not clear, focused and consistent.
  • Conditions change making the plan, as conceived, obsolete.
  • The proper control systems are not in place to measure and track the execution
    of the strategy.
  • Reinforcers, such as, culture, structure, processes, IT systems, management
    systems and human resource systems, are not considered, and/or act as inhibitors.
  • People are driven by short-term results.

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