Revisiting the Top 5 Reasons Why Executing Strategy Fails

    

I had the pleasure of facilitating a great Business Leadership workshop for an organization adapting to a new strategy after a major merger of two equally sized enterprises. The workshop focuses onfailed-strategy lifting up and developing business acumen and business leadership skills.

We spent some really good time introducing and discussing strategic frameworks and how to choose the right value proposition to offer customers.

After that discussion, we turned our attention to the execution of the strategy. As I have shared for many years, at Advantexe we define business leadership as the execution of your strategy through people. In discussing and learning about execution, one of the best ways to explore what works is to discuss and understand what doesn’t work. As part of an exercise, I asked participants working in teams of 5 (we had teams) to discuss and list out their top reasons why they feel strategy execution doesn’t work in their organization.

I was curious to hear if there has been any significant change in perceptions over the past 5 years since the pandemic in light of the different ways people are working. To my surprise and then delight, the response of this team of senior leaders was consistent with the responses from thousands of leaders we have worked with over the past 20 years.

In revisiting the top 5 reasons why executing strategy fails, there are some strong takeaways for leaders in today’s dynamic and chaotic business world. Here is the updated list with some color commentary on each of the different drivers:

1) Lack of Specific, Clear, and Effective Communications

Issues: Strategy is often communicated poorly or not at all. Employees may not understand their role in the strategy or even what the strategy is. Mid-level and ever some senior level leaders fail to turn the strategy into specific goals and objectives that link back to the big picture.

Impact: Without a clear understanding, there is a lack of alignment between the strategy and day-to-day activities, causing confusion and inconsistency in execution.

Color Commentary: How can any Manager or “coach” provide guidance and coaching to direct reports without it linking the strategy? But it happens ever day!

2) Poor Leadership and Commitment

Issues: Leaders fail to commit fully to the strategy, do not lead by example, and don’t hold others accountable. Sometimes they lack the necessary skills to drive execution or sometimes they just don’t have the will to want to do it the right way.

Impact: Without strong and committed leadership, teams lack direction and accountability and will lose motivation. When they lose motivation, they will move on to other priorities.

Color Commentary: There is no such thing as partial commitment when executing strategy. You are either all in, or you should be out. Every leader in every organization is in role to be the facilitator of the execution of strategy and must be committed.

3) Lack of Resources and Leadership Support

Issues: The strategy was developed without fully understanding the necessary resources (time, money, skills, technology, etc.). When these resources are lacking, it becomes very hard to execute effectively.

Impact: Projects and Teams are left underfunded or understaffed, leading to incomplete or delayed execution and deep frustration among employees.

Color Commentary: There is a fine line between having too many resources and not enough. Stakeholders want leaders to get the most out of every dollar, and employees want every dollar to invest in more resources to make it easier to execute. The leader’s job is to find the perfect balance.

4) Failure to Track Progress and Adapt

Issues: There is a lack of a project plan, performance metrics, or regular check-ins to assess whether the strategy is on track. Often, organizations also fail to adjust the strategy in response to changing conditions such as competitive moves and shifts in customer demands.

Impact: Without tracking, progress and issues are not identified early enough to correct course. Strategies get off track, but organizations continue with outdated plans.

Color Commentary: This is the cause of most problems and misalignments in organizations. If you can figure this out, you can significantly reduce the potential of failure.

5) Resistance to Change

Issues: Even when a strategy is well-communicated, organizational culture can resist the change needed for execution. Employees may want to stick with old processes or habits, resisting new ways of doing things because it is easier for them and they don’t have to step outside of their comfort zone.

Impact: Resistance can cause delays, conflicts, and ultimately lead to the implosion of the strategy.

Color Commentary: Great strategies will fail if they are sabotaged by the change resistors. Proactively having a change management plan can mean the difference between success and failure.

In summary, the issues related to strategy execution are as critical as ever. These five reasons why execution fails can easily be turned into positive actions that can help you become a better leader with the ability to execute flawlessly.

Why Business Acumen Matters

Robert Brodo

About The Author

Robert Brodo is co-founder of Advantexe. He has more than 20 years of training and business simulation experience.