In today’s increasingly changing business environment, the ability to execute a strategy effectively is as critical as the strategy itself. However, despite the importance of this leadership role in regard to strategy execution, an alarming percentage of strategies continue to fail. In some cases, it may be that the strategy itself was flawed, but more often, based on reporting, strategy failure is generally associated with a failure in leadership.
According to Harvard Business Review, 67% of strategies fail, while Kaplan and Norton suggested that up to 90% of strategies are not executed successfully. Given the crucial role strategy execution plays in achieving organizational success, these statistics are concerning. If leaders understand the importance of executing strategy, why do so many still fail to deliver?
At the heart of this issue lies the multifaceted nature of leadership itself. Stephen Covey identified four essential roles that leaders must embody to be effective: Inspiring Trust, Creating Vision, Coaching Potential, and Strategy Execution. Each of these roles is vital, but even the best leaders can stumble when it comes to translating strategy into action. This blog explores why strategy execution fails so often and how the Strategy Management Group can help leaders bridge this gap.
The Disconnect Between Strategy and Day-to-Day Operations
One of the most significant reasons strategies fail is the disconnect between high-level strategic planning and day-to-day operations. Leaders often spend considerable time crafting a vision and setting long-term goals, but they struggle with translating these into actionable steps that can be executed successfully at all levels of their organization. This disconnect leads to confusion, misaligned priorities, and ultimately, failure in execution.
Author Stephen Blandino highlights several key reasons behind this failure, one of which he collectively refers to as “Lazy Leading.” This include an unwillingness or aversion to working extra hours, focusing on perks and privileges over vision, and poor time management. When leaders are more concerned with maintaining their status quo rather than rolling up their sleeves and leading by example, the execution of strategy suffers.
Overemphasis on Internal Operations
Intellibridge cites that another common pitfall in strategy execution is a leaders’ overemphasis on internal operations. Leaders can become so absorbed in managing the day-to-day aspects of the business that they lose sight of the bigger picture—the strategy itself. This inward focus prevents them from allocating the necessary time and resources to drive the strategy forward, resulting in stagnation or failure. Rather than having the trust and faith that leaders and managers throughout the organization are well-equipped, knowledgeable, and capable, these leaders feel the need to micro-manage, which in itself is destructive to the organization in a long-term view.
This inward focus also manifests in what Blandino refers to as “Excessive Hallway Conversations”—informal, unstructured discussions that can derail focus and distract from strategic objectives. When leaders spend too much time on operational minutiae and not enough on strategy, execution falters.
Lack of Discipline
A lack of discipline in leadership is a critical factor that can often lead to the failure of strategy execution. This concept encompasses a range of issues, including an undisciplined schedule, poor time management, and a lack of passion for driving the strategy forward. When leaders fail to establish and adhere to a disciplined approach, they struggle to maintain focus on the strategic priorities that are essential for success.
Leaders who do not effectively manage their time often fail to allocate sufficient resources and attention to critical tasks that enable strategy. Instead of proactively managing their time, they may react to immediate demands, emergencies, or interruptions, leaving little room for strategic thinking and execution. Over time, this reactive approach can lead to missed opportunities, stalled progress, and ultimately, the failure of the strategy.
Moreover, a lack of passion for the strategy can aggravate these issues with strategy being “dead on arrival.” Leaders who genuinely are not invested in the organization’s strategy do not have the ability to communicate its importance with conviction. As such, they are unlikely to inspire and motivate their teams to pursue it with passion and vigor. When leaders themselves lack enthusiasm and commitment, it becomes challenging to foster a culture of accountability and high performance within the organization. Teams may become disengaged, and the strategy may be seen as just another task rather than a driving force critical for the organization’s success and future.
Never-Ending Networking
Never-ending networking is a phenomenon where leaders become so engrossed in building relationships and attending events that they neglect the critical task of executing their strategy. While networking is undeniably valuable—offering essential connections and opportunities that can benefit the organization—there’s a risk that this constant pursuit of relationships can become a distraction. Leaders who are perpetually networking may find themselves caught in a cycle that detracts from the focus needed to drive strategic initiatives forward. The key is to strike a balance, ensuring that networking enhances strategy execution rather than becoming an endless loop that diverts attention from implementing the organization’s most crucial goals.
Idea Infatuation and Problem Paralysis
Leaders often fall into the trap of “idea infatuation”—becoming enamored with new ideas and initiatives without following through on execution. While innovation is essential, constantly chasing new shiny objects can prevent the organization from focusing on and executing its core strategies. Toby Keith’s “A Little Less Talk and a Lot More Action” should be the theme for organizations that spend too much time discussing and not enough time doing. Michel de Montaige, a philosopher from the 1500s said it like this, “Saying is a different thing from doing.”
On the flip side, “problem paralysis” occurs when leaders become so fixated on potential challenges or risks that they are unable to make timely decisions. This paralysis often arises from a fear of failure, where the potential consequences of making the wrong decision loom so large that leaders are hesitant to take any action at all. It can also stem from a lack of confidence, where leaders doubt their own judgment or fear the repercussions of making a bold move. Additionally, an inability to prioritize effectively can worsen this paralysis, when leaders become overwhelmed by the sheer number of factors to consider and options to weigh, leading to endless analysis and scenarios without progress.
When leaders fall into the trap of overanalyzing every detail and obsessing over what could go wrong, they inadvertently stall the very initiatives that could drive the organization forward often resulting in lost opportunities that may never be seen again. Strategy execution grinds to a halt as decisions are delayed, opportunities are missed, and momentum is lost. This state of paralysis can be particularly damaging in fast-paced environments where the ability to adapt and move quickly is critical. Without decisive action, even the most well-thought-out strategies can fail to materialize, leaving the organization stagnant and unable to achieve its goals.
Lack of Accountability and Clear Metrics
Another critical factor in the failure of strategy execution is the lack of accountability and clear metrics. According to Kaplan and Norton, one of the reasons strategies fail is that organizations do not have a robust system for tracking progress and holding individuals accountable for results. Without well thought out and balanced strategic KPIs, as well as a system in place to track progress and hold individuals accountable for results, it becomes nearly impossible to ensure that strategic initiatives are carried out effectively. When strategic initiatives fail, so does the organization’s strategy.
The failure of strategy execution is a common and costly issue in organizations today. While there are many reasons why leaders struggle to translate strategy into action, common themes include a disconnect between strategy and operations, overemphasis on internal matters, lazy leading, and a lack of accountability. By understanding these pitfalls and taking steps to address them, leaders can improve their chances of successful strategy execution.
Conclusion
At the Strategy Management Group, we understand the challenges leaders face in executing strategy. Our Strategy Execution Professional Certification Course is designed to equip leaders with the tools and knowledge they need to overcome these challenges and successfully implement their strategic plans.
If training is not a good fit, our expert consulting and coaching services provide personalized support to help you address your unique challenges in strategy execution. Our consultants bring decades of experience in guiding organizations to align their strategies with their operations, ensuring that your team is not just planning but effectively implementing those plans.
Through our coaching services, we help leaders develop the discipline, time management skills, and accountability structures needed to avoid the common pitfalls briefly examined in this blog and other barriers to execution. We work closely with your leadership team to ensure that everyone is aligned, motivated, and equipped to drive your strategic initiatives forward. Contact us today for solutions tomorrow.
Sources:
- Harvard Business Review. “Why Strategy Execution Unravels—and What to Do About It.” November 13, 2017.
- Kaplan, R.S., & Norton, D.P. “The Balanced Scorecard: Translating Strategy into Action.” Harvard Business School Press, 1996.
- Blandino, S. “The Four Reasons Leaders Fail to Execute.” [https://stephenblandino.com/2015/03/four-reasons-leaders-cant-execute.html].
- Intellibridge. “The Strategic Execution Imperative.” [https://www.intellibridge.us/90-percent-of-organizations-fail-to-execute-their-strategies-successfully/].
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Terry is Balanced Scorecard Institute's Director of Training and Senior Associate with over 30 years of experience working in both the private and public sectors.