Waning Executive Confidence in Strategy Execution

A recent Booz & Company study found that 60% of global executives surveyed could not say affirmatively that their companies' strategies would lead to success.  This number has increased from past years highlighting what might be a trend toward executive concerns with getting strategy implemented.  

Specifically, the survey found the following: 

• More than half of executives (51%) said that communicating the company’s strategy and getting buy-in for it is a significant challenge at their company;
• Fifty-five percent said ensuring day-to-day decisions are in line with the strategy is a significant challenge;
• Fifty-six percent said allocating resources in a way that really supports the strategy represents a big challenge;
• And 54% said quickly translating strategic and operational decisions into action is a challenge.

Over the next two weeks we will be responding to each one of these concerns by providing actionable steps leaders can take to tip the scales of strategy execution in their favor.

Making Your Strategic Plan Strategic

Strategic planning is (and has been) among the most widely used management tools of all time.  But most strategy scholars argue that the annual strategic planning process is anything but strategic.  Gary Hamel notes "In the vast majority of companies, strategic planning is a calendar-driven ritual... [which assumes] the future will be more or less like the present." (Hamel, 1996, Harvard Business Review).  Further, Rob Grant in his study of strategic planning in a turbulent environment found that companies use strategic planning largely as a goal setting and control process with only limited levels of innovation (Grant, 2003, Strategic Management Journal).  That's too bad given that upward of 90% of organizations engage in annual strategic planning.  Clearly there is room for improvement.  

In a recent Fast Company article Kaihan Krippendorff highlights four steps leaders can do to make their strategic planning processes more strategic.  His findings from his own work discuss useful--but challenging--ways to improve the quality of the strategic planning process.

People Side of Strategy Execution

Getting Strategy Execution Right is a short but insightful video that focuses on the people side of strategy execution.  It's done by Michael Jarrett, INSEAD professor and Cranfield School of Management PhD.  Sorry for the up front commercial.

Strategy Execution: What Is It?

With management teams developing and finalizing their FY2014 strategies, I thought it might be useful to take a quick look at what steps comprise a good strategy execution process.  This post is linked to one I wrote a few years ago for the American Management Association--before Andy and I published our book on the topic.  It's short but covers the key elements. 

Four Tips to Improve Your Strategic Planning

Here's a good HBR.org post post from the Schaffer consulting team regarding ways to improve your strategic planning.