Studies indicate that 90% of all companies do not execute their strategic plans effectively. So, only 10% of companies execute their strategies!? Why is there a problem with Strategic Execution™; the ability to implement strategy effectively and sustainably? Is it because they don’t care? Feel like strategy is a check the box activity?
There are multiple issues here that companies need to deal with:
- Formation of the strategy
- Execution of the strategy
Often times it’s the strategy itself, or lack thereof, which is the culprit. We will look at the other elements of Strategic Execution, systems, processes, organization and culture, in subsequent articles. For now, let’s consider the “What happened to my strategy?” question. Some companies have never had a true strategy in the first place. The owner/CEO is so hands-on and the work so tactical that the “strategy” is “keep up with orders, react and get through the day.”
Strategy might be “something we used to do, with an accompanying “It’s around here somewhere” attitude. The recent downturn pushed many companies into a simple “survive” mode. Some have yet to emerge from this to a strategy that is focused on getting through this economic inflection point and thriving.
A company may have a strategy, but it has about a quarter-inch of dust on it. We can all agree that things — global economics, technology, social and political influences — have changed a good bit over the past few years, but few companies have viewed the strategic needs of their business from those perspectives.
- Most Important goal – Only one that the company strives for and everything else is built around it
- Clearly defined strategies and tactics for the three primary horizontal business processes:
Sound strategies in the prevailing, dynamic business environment can have short half-lives and need to be reviewed routinely, Not every quarter, but every month, some part of the the strategy should be reviewed. One month it is operations focused and the other month it is market focused. Every quarterly meeting, a bit more time is added to talk overall strategy at the business level. We do all of this virtually through our Virtual Strategic Planning process.
If you’re in the 90%, it’s time to take a look at your strategy and why you struggle so much here.
Group50 Consulting offers full strategic planning services: strategy planning workshops, assessment, development, planning and execution services that will cater to your specific business. Our assessments identify the unique opportunities for your organization and our workshops, systems, and training provide guidance to focus on your strategy and its execution. Group50 Consulting is equipped to work with you and help you lead your strategic planning process and drive your Strategic Execution for organization-wide success and sustainability.
If you want to find out where your company stands from a strategic planning and strategic execution standpoint, call us at (909) 949-9082, drop us a line at email@example.com or request more information here.
About the Author: Jim Gitney is the Founder and CEO of Group50. Jim and the Group50 team are considered strategy, operations and supply chain subject matter experts. Group50 Consultants are all former operating executives who understand operations at all levels. They have held positions on boards, in the C-Suite and in every functional role in a business. Jim and the team know how business works and how to quickly move the strategic needle.
- Strategy Doesn’t Matter – Unless You Can Execute It…
- Don’t Sell Products, Sell Systems – The Product Lifecycle Revenue Model
- Risky Business…Is your company wearing Tightie Whities?
- The Great Reassessment – Inflection Point
- Is Your Company at an Inflection Point?
- Strategic Maturity – An Imperative at This Economic Inflection Point
- Get on the Train or Get off at the Next Stop! – Inflection Point
- What is an Effective Sales Strategy? – Inflection Point
- Help! I Stopped Growing! – Inflection Point
- Podcast With Jim Gitney on What to do About Moving Through an Inflection Point