The Seven Deadly Sins of Strategy Execution: Why Strategies Fail and How to Avoid Them

Strategy is one of the most important aspects of business success. It sets the direction for an organization and provides a roadmap for achieving its goals. However, despite the importance of strategy, research has shown that it can be difficult to develop and execute effective strategies. This is because there are a number of common pitfalls that can undermine even the best strategies. In this article, I will discuss the seven deadly sins of strategy execution and provide insights into how you can avoid them.

Death by Planning

One of the most common problems with strategy execution is "Death by Planning." This occurs when organizations put too much emphasis on analysis and planning, and not enough on delivery. They become so focused on perfecting their plans that they never get around to putting them into action. This can be a major roadblock to success because a strategy is only as good as its execution.

Here are some tips on how to avoid "Death by Planning":

  1. Set clear, measurable goals and objectives: Make sure that the strategy you're creating is aligned with your organization's goals and objectives, and ensure that they are well-defined and measurable.
  2. Emphasize action over analysis: Don't get bogged down in analysis paralysis. Make sure that your planning phase is focused on the necessary research and analysis to inform your strategy, but don't let it consume all your time and resources.
  3. Encourage collaboration and cross-functional teams: The best strategies are often the result of a collaborative effort from a diverse group of individuals. Encourage cross-functional teams to work together to develop and execute your strategy.
  4. Establish clear ownership and accountability: Make sure that someone is responsible for leading the strategy and that there is clear ownership and accountability for its success.
  5. Keep your strategy flexible: Don't be afraid to make changes and adjustments to your strategy as circumstances evolve. Your strategy should be a living document that is adaptable and flexible to the changing needs of your organization.

Loss of Focus

Another common problem is "Loss of Focus." After a big-bang introduction, attention to the strategy often starts to wane, and people return to business as usual. This is a major problem because executing a strategy takes time and continuous effort. Organizations need to remain focused on their strategy if they want to achieve their goals.

Here are some tips on how to avoid "Loss of Focus":

  1. Communicate regularly: Regular communication helps keep everyone focused on the strategy and its objectives. Make sure that all stakeholders are informed of progress and that any necessary changes are communicated clearly and effectively.
  2. Encourage continuous improvement: Create a culture of continuous improvement within your organization, where everyone is encouraged to continually refine and improve the strategy.
  3. Keep the strategy top-of-mind: Make sure that the strategy is visible and accessible to everyone in the organization. This could involve using visual aids, such as posters or infographics, to keep the strategy top-of-mind.
  4. Track progress and celebrate successes: Regularly track progress towards the goals and objectives set in the strategy and celebrate successes along the way. This helps keep everyone motivated and focused.
  5. Foster a sense of shared ownership: Encourage everyone in the organization to take ownership of the strategy and to feel invested in its success. This can be achieved through regular feedback and opportunities for involvement and contribution.

Reinterpretation

"Reinterpretation" is another common problem that can undermine strategy execution. This occurs when people adopt the terminology used in the new strategy but use it to describe what they already were doing. The result is that there is no real change. This is a major problem because organizations need to be able to adapt and change if they want to remain competitive.

Here are some tips on how to avoid "Reinterpretation":

  1. Ensure clarity of purpose: Clearly articulate the purpose of the strategy and its objectives. This helps prevent people from using the terminology in their own way and ensures everyone is working towards the same goals.
  2. Provide training and support: Offer training and support to all stakeholders to help them understand the strategy and what it means for them.
  3. Encourage open communication: Foster an open and inclusive environment where people feel comfortable sharing their thoughts and concerns about the strategy.
  4. Monitor and adjust as needed: Regularly monitor progress towards the strategy’s objectives and make adjustments as needed. This helps ensure that the strategy remains relevant and on track.
  5. Lead by example: Set a positive example by demonstrating how the strategy should be implemented and showing how it contributes to the organization’s overall success. This helps prevent reinterpretation and ensures everyone is working towards the same objectives.

Disconnectedness

"Disconnectedness" is another common problem that can occur when a strategy is based solely on top management's perception of reality. Down-the-line managers and employees may face a very different reality, creating a disconnect. This can result in a lack of buy-in and a lack of alignment, which can hinder the success of the strategy.

Here are some tips on how to avoid "Disconnectedness":

  1. Involve all stakeholders: Ensure that all stakeholders, including managers and employees at all levels, are involved in the strategy development process. This helps ensure that everyone is aware of the strategy and that it takes into account the realities faced by different parts of the organization.
  2. Encourage participation: Encourage everyone to share their thoughts and concerns about the strategy, and to offer suggestions for how it can be improved.
  3. Foster collaboration: Encourage collaboration between different parts of the organization to help ensure that everyone is working towards the same objectives.
  4. Monitor progress: Regularly monitor progress towards the strategy’s objectives and make adjustments as needed. This helps ensure that the strategy remains relevant and on track.
  5. Foster transparency: Foster transparency by openly communicating the strategy, its objectives, and progress towards achieving those objectives. This helps prevent disconnectedness and ensures everyone is working towards the same goals.

Behavioral Compliance

"Behavioral Compliance" is another common problem that can occur when people comply with the new strategy only because they are asked to do so. They keep up appearances and tick the necessary boxes, but they don't truly embrace the strategy. This can result in lackluster performance and can undermine the success of the strategy.

Here are some tips on how to avoid "Behavioral Compliance":

  1. Create a shared vision: Ensure that everyone in the organization understands the vision and purpose behind the strategy. This helps foster buy-in and commitment.
  2. Foster ownership: Encourage everyone to take ownership of the strategy and to feel a sense of responsibility for its success.
  3. Provide training: Provide training and support to help everyone understand the strategy and how it will be implemented.
  4. Encourage innovation: Encourage creativity and innovation, and reward employees for coming up with new and better ways of achieving the strategy’s objectives.
  5. Lead by example: Lead by example by demonstrating the behaviors and attitudes that the organization wants to see in its employees. This helps create a culture of commitment and buy-in to the strategy.

Misreading Resistance

"Misreading Resistance" is another common problem that can occur when employees are blamed for resisting change when in fact something else is going on. The strategy may be unclear or its reasons may not be explained, which can result in resistance. This is a major problem because organizations need to be able to effectively communicate their strategies if they want to achieve their goals.

Here are some tips on how to avoid "Misreading Resistance":

  1. Listen to feedback: Encourage employees to provide feedback and take it seriously. Listen to what they are saying and respond to their concerns.
  2. Provide clear explanations: Ensure that the reasons for the strategy and its objectives are clearly communicated and understood by everyone.
  3. Address real resistance: Address the root causes of any resistance and find ways to resolve them. This may require making changes to the strategy or the way it is being implemented.
  4. Involve employees in the process: Involve employees in the planning and implementation process as much as possible. This helps to build ownership and buy-in, and can also provide valuable insights into potential obstacles and resistance.
  5. Foster open communication: Foster open and honest communication throughout the organization. Encourage employees to share their thoughts and ideas, and to communicate any concerns they may have.

Broken Agreements

Finally, "Broken Agreements" is a problem that can occur when management promotes the strategy in words but undermines it with their actions. They violate trust and credibility by not acting along the lines of the strategy. This can result in a lack of buy-in and can undermine the success of the strategy.

Here are some tips on how to avoid "Broken Agreements":

  1. Lead by example: Successful strategy is conceptually cascaded top-down but operationally deployed bottom-up. Leaders must set the tone by consistently demonstrating their commitment to the strategy and following through on their promises.
  2. Hold everyone accountable: Hold everyone, including senior management, accountable for following the strategy and fulfilling their commitments.
  3. Foster a culture of transparency: Foster a culture of transparency and accountability, where everyone is held accountable for their actions and decisions.
  4. Encourage active participation: Encourage active participation from everyone in the organization, and ensure that everyone is involved in the implementation and monitoring of the strategy.
  5. Regularly review progress: Regularly review progress and performance, and hold everyone accountable for meeting goals and targets. This helps to ensure that the strategy remains on track and that everyone is working together effectively towards its success.

Conclusion

Strategy execution is a complex and challenging process, but by avoiding these seven deadly sins, organizations can increase their chances of success. Organizations need to focus on delivery, maintain their focus, avoid reinterpretation, ensure disconnectedness, embrace behavioral compliance, effectively communicate their strategies, and avoid broken agreements if they want to achieve their goals. By doing so, they will be well on their way to becoming a star in strategy execution!


The list of 7 'main failings' is from Johnson, Scholes & Whittington, 2011, Exploring Strategy, pg 489-491
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