To Avoid Strategy Execution Mistakes, Think Strategic Clarity
Strategy execution mistakes can be avoided and mitigated with strategic clarity, Our organizational alignment research found that strategic clarity account for 31%lly implemented. of the difference between high and low performing organizations in terms of:
A Strategy Can Only Succeed if it is Executed
You can spend all the time you like creating a clear strategy designed to improve and grow your business but, if you don’t execute against that plan, what good is it? Strategy execution mistakes happen because your strategy must go through your people and your culture to get fully implemented.
Some Frightening Data on Strategy Execution Mistakes
Here are some numbers that shock even those of us in the field of strategic clarity and execution.
Four Strategy Execution Mistakes to Avoid
Here are strategy execution mistakes to avoid based upon the four most common factors we find get in the way of effectively executing even the best of strategic plans:
1. Poor Strategy Communication
Many companies feel that simply by repeating their business strategy clearly and often, employees will get it. But repetition does not equal understanding or strategic clarity. Though your employees may say they understand where and how the company is headed, you should test them.
Ask employees to describe the strategy and how they and their team fit in using their own words. If you are like most of our clients, you may be surprised how few have translated your strategic intentions into the way they handle their jobs. It is not the number of times you communicate the strategy but the quality of those communications.
When it comes to strategic communication, our organizational alignment research found:
2. Overly Rigid Adherence To The Plan
Yes, it’s important to stick to your plan. However, there are times when flexibility is needed in order to adjust to new and changing market demands. Sometimes a detour gets you back on the right path faster than persevering through a washed-out and heavily rutted path.
No strategy can anticipate every future event. Companies need to adjust to the facts on the ground. Those who are best at strategy execution and strategic clarity know when to seize opportunities that support the plan at the same time as they coordinate with other parts of the organization.
When it comes to strategic agility, our organizational alignment research found:
Make sure your leaders are inspiring others to creatively translate problems into opportunities and asking people to challenge assumptions and look at things in new ways.
3. Lack of Accountability and Decision Making at All Levels
Ultimately the CEO is responsible for strategy execution; it is the CEO who often bears the brunt of business failure or reaps the rewards of business success. But the CEO cannot be solely responsible for driving the strategy forward. It is the decisions made at all levels throughout the organization that will, in the final analysis, determine if the strategy is properly executed.
In terms of decision making, our organizational alignment research found:
Top-down implementation can have a positive effect initially but an organization’s capacity to adjust to changing circumstances can be diminished over the long-term. Too much oversight from top leaders can deteriorate into micromanagement and suppress the agility and cross-functional coordination needed for success.
4. Over-reliance On Unrealistic Targets
Effective performance measurement is the heart of a high performance culture. But make sure you are measuring the right activities, outcomes and behaviors in the right way. We have seen some organizations pay too much attention, for instance, to making the numbers – e.g. Wells Fargo’s sales scandal driven by impossible sales quotas.
If outcomes are all employees are rewarded for, they will tend to:
They may “make their numbers” but in a downward spiral of productivity and potentially toxic behavior that discourages growth and innovation. Think of balancing performance measurement between:
to create the healthy and aligned culture to execute your strategic priorities.
The Bottom Line
To avoid strategy execution mistakes and to be among the 10% of companies that consistently implement their plans across the organization, communicate, adapt, create accountability and ensure clear metrics for success.
To learn more about how to avoid strategy execution mistakes, download 3 Big Mistakes to Avoid When Cascading Your Corporate Strategy
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