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Strategy Execution: Why We Fail At Strategic Implementation
| Guest post by: Joe Evans |
Article Overview: Why do so many organizations fail at strategic implementation? The quality of an organization’s strategic plan is not the primary determinant of success in goal achievement. No, the primary factor is that success hinges on execution. This article is part 1 of a two part series and examines some of the most common root causes of organizations and their leaders to miss the mark on strategic implementation. In part 2 of the series we map out an approach for successful strategic execution.
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Strategy Execution: Why We Fail At Strategic Implementation
Why do so many organizations fail
at strategic implementation? The quality of an organization’s
strategic plan is not the primary determinant of success in goal
achievement. No, the primary factor is that success hinges on
execution. This article is part 1 of a two part series and examines
some of the most common root causes of organizations and their leaders
to miss the mark on strategic implementation. In part 2 of the series
we map out an approach for successful strategic execution.
Execution doesn’t just happen,
it’s planned.
Many a CEO have been blamed for
failed or poor strategies and most have ultimately lost their position
as a result. The truth is, that in the majority of cases, the strategy
wasn’t the real problem. No, for these unfortunate CEO casualties, the
real issue that cost them the job of Chief Executive was poor
execution. While there are other causes, the two biggest factors that
lead to poor execution are:
Factors That Lead to Failure in Execution
Related Articles- Lack of tactical execution (detailed initiative-level) planning and,
- Overlooking plan governance.
Factors That Lead to Failure in Execution
Failure to execute has several
root causes. Let’s look at several common reasons why companies fail to
execute their strategic plans fully:
Ill-defined Strategic Goals
- Poor prioritization
- Lack of detail planning to support plan goal achievement
- Poor communication and coordination
- Strategy and culture misalignment
- Accountability missing from plan goals
- Poor planning governance
- Ill-defined strategic goals
Ill-defined Strategic Goals
Once ambiguity creeps into
strategic plan goals, it leads to confusion and failure in execution.
So what causes ambiguity in the first place?
The language used to state goals is usually where the problems start. Strategic plan goals must be carefully constructed in order to be crisp and well understood. Moreover, plan goals must be measurable. By definition goals need to quantify some sort of increase or decrease – usually as a percentage change. The language used to define goals can be limited to a controlled vocabulary that uses terms such as increase X by Y% or decrease X by Y%. Removal of variability in the language of our goals helps to start execution on the right track.
Poor Prioritization
The language used to state goals is usually where the problems start. Strategic plan goals must be carefully constructed in order to be crisp and well understood. Moreover, plan goals must be measurable. By definition goals need to quantify some sort of increase or decrease – usually as a percentage change. The language used to define goals can be limited to a controlled vocabulary that uses terms such as increase X by Y% or decrease X by Y%. Removal of variability in the language of our goals helps to start execution on the right track.
Poor Prioritization
Every goal cannot be the top
priority, but we set ourselves up for failure by treating them all as if
they were equal. Organizations lack the energy or focus to take on too
many goals at once. Even if the capacity were there to take on
unlimited amounts of work associated with implementation of strategic
goals – it is a bad idea to over extend. A final tally of more than
five overall plan goals is too many for most organizations.
We must therefore set priorities that address the criticality of each goal relative to others and think of these as key outcome “candidates” to select from. Keep in mind that a plan goal explodes into a tree structure of underlying program of initiatives that relate to the execution of that goal. Additionally, many elements of the plan may be foundational components that need to be in place before other goals can be put into execution. Some work must be deferred while other goals and the projects associated with it are fast-tracked to pave the way. That is why detailed planning is so important. It shines the light on these problems before we’ve allocated millions of dollars on a half-baked plan.
Lack of Detail Planning
We must therefore set priorities that address the criticality of each goal relative to others and think of these as key outcome “candidates” to select from. Keep in mind that a plan goal explodes into a tree structure of underlying program of initiatives that relate to the execution of that goal. Additionally, many elements of the plan may be foundational components that need to be in place before other goals can be put into execution. Some work must be deferred while other goals and the projects associated with it are fast-tracked to pave the way. That is why detailed planning is so important. It shines the light on these problems before we’ve allocated millions of dollars on a half-baked plan.
Lack of Detail Planning
Most of us like to avoid getting
into the details of planning, and would prefer for someone else to sort
that mess out. The trouble is, when it comes to execution and achieving
goal outcomes, the details of execution tactics are just as critical as
the strategy.
Detailed planning involves breaking down work into
smaller parts. It is far easier to solve a small puzzle than to launch
into solving a massive one. Detailed planning works the same way.
Human beings accomplish work more efficiently when we deconstruct
complex jobs into smaller groupings of related tasks.
Poor Communication and Coordination
Poor Communication and Coordination
When we are not enlightened as to
what is expected of us, we simply do our best and follow our instincts
to get the job done as best we can. This is why communication of plan
details is so important. Additionally, we must make sure everyone on
the team understands the big picture as well. Failure to communicate
and educate is a huge factor in executing successfully. Employees who
are responsible and accountable for their scope of plan execution must
understand what is to be done, when and how that affects the overall
outcome.
Strategy and Culture Misalignment
Strategy and Culture Misalignment
Strategic execution cannot be
planned without consideration of the organization’s culture. Strategic
goal implementation is a form of organizational change management. The
methods of strategy implementation are affected not only by
organizational structure, but also the values and social mores of the
organization’s culture.
Accountability Missing From Plan Goals
Accountability Missing From Plan Goals
Our own experience tells us that
achieving strategic planning and management goals requires an actionable
plan that considers the people required to bring the plan to fruition.
Sounds simple enough – yet, in practice both components (plan and
people) have intricacies and uncertainties that must be carefully
managed. An inherent lack of accountability in the planning process
leads to problems and sometimes complete failures in execution.
Everyone is accountable in accomplishing their individual tasks that are
required to achieve the overarching organizational goals and some,
including the CEO, may be accountable for reinforcement of the tasks.
Poor Planning Governance
Poor Planning Governance
Plan governance enables
organizations to manage the interrelationships of all underlying
Initiatives comprising a strategic goal. Governance also provides the boundaries and check points needed to keep programs in alignment with plan goals.
Execution can go awry in a variety of ways over time and plan governance is the foundation that oversees strategic implementation from an objective point of view. More than that, proper governance becomes an integral part of the planning process itself. The plan office serves as a coordinating body when considering dependency relationships among programs and constraints on resources. Organizations that have established an effective strategic governance model can ensure that all the programs and their underlying projects are managed and harvested for necessary metrics and progress reporting. Metrics harvested from the tactical layer provide historical acceleration data to offer continual improvement to the planning cycle.
Is Your Organization Facing Any of These Common Challenges?
Initiatives comprising a strategic goal. Governance also provides the boundaries and check points needed to keep programs in alignment with plan goals.
Execution can go awry in a variety of ways over time and plan governance is the foundation that oversees strategic implementation from an objective point of view. More than that, proper governance becomes an integral part of the planning process itself. The plan office serves as a coordinating body when considering dependency relationships among programs and constraints on resources. Organizations that have established an effective strategic governance model can ensure that all the programs and their underlying projects are managed and harvested for necessary metrics and progress reporting. Metrics harvested from the tactical layer provide historical acceleration data to offer continual improvement to the planning cycle.
Is Your Organization Facing Any of These Common Challenges?
If you are not sure about the general
health of your own organization’s strategic implementation, help is on
the way. Part 2 of our series offers a roadmap for good strategic
implementation.
A, B, C's of Execution
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False Dichotomy! (If Anything, Backwards!)
5 Secrets to Successful Corporate Strategy Implementation
SURVIVING THE ECONOMIC DEPRESSION BY CREATING A STRATEGY FOR YOUR BUSINESS DEVELOPMENT
The Importance of Strategic Marketing Consulting in Marketing Vendor Management
5 Marketplace Implementation Lessons from a Corporate Strategy Execution Consultant with 25+ Years of Experience
Business Plan Why Doesnt Your Business Plan Consistently Deliver Your Desired Results
Execute Your Strategic Framework Part I
How to Avoid Business Failure
Hidden Opportunities in Economic Downturns
Execution - The Power of Getting Things Done.
The Changing Role of Board Involvement in Corporate Strategy
The most important thing to know about your strategic plan.
3 Common Causes of Corporate Strategy Misalignment
What's Culture Got To Do with It?
FOUR WAYS TO ENSURE LEADERSHIP RESPONSIBILITY
A Fresh Approach to Obtaining Global Perspectives on Corporate Strategic Planning
“Don’t We Have People For That?”: Operational Planning & Strategy Execution
Coaching Your Business To The Next Level Series Part 5 Work Your Plan
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About the Author: Joe Evans RSS for Joe's articles - Visit Joe's website Joe Evans serves as the President and Chief Executive Officer of Method Frameworks. Method Frameworks provides management consulting services to commercial enterprises with strategic and operational planning solutions using the firm’s proprietary Plan4 process. Visit Method Frameworks at www.methodframeworks.com. Joe is a published author, frequent speaker and recognized expert in co rporate strategic planning. To contact Method Frameworks about scheduling Mr. Evans about an upcoming speaking engagement, visit www.methodframeworks.com/business-speaker or email requests to media_relations@methodframeworks.com. Want more corporate strategic planning insights? Read Joe's blog. Also, request to join the "Strategic Planning Xchange" now by following this link to the Strategic Planning Xchange. Click here to visit Joe's website   A Lesson in the History of Strategic Planning Strategic Planning Business Executive Essentials Part 3 of 12 Whats Wrong With Your Corporate Planning Process Strategic Planning Business Executive Essentials Part 6 of 12 Bringing Passion Back to Corporate Planning |
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Great topic Kevin!!
Jude
Book: Secrets of Six Figure Women
- Secrets of Six Figure Women: Surprising Strategies to up your earning and change your life
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Jacket:
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Table of Contents
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Appendces:
Resources and websites
Tips for getting out of dent
Investing Basics: Wealthbuilding 101
Re: 10 Reasons Who Startups Fail & Book Recommendations
- Great post,but please edit the headline. I presume it is "10 Reasons Why Startups Fail & Book Recommendation
Re: What can you do if your franchise is hit by a scandal?
- GT - Brilliant Strategy...
What can I add? I'm at a loss for words...so I'll shut up now...
Re: What inspires you?
- Another inspiring thing is which I really likes
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Robert
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