What could go wrong with strategy and its execution?
In its latest CFO Insights, Deloitte has a piece on Strategy execution: What could possibly go wrong?
The article is worth reading and discusses three ways in which organizations fail – three root causes.
But, are they the most common?
How about these?
- It’s the wrong strategy! For example, insufficient attention is placed on the actions of competitors and regulators, changes in the market, and so on. In particular, the strategy-setting process does not include all the critical players (such as compliance, risk, and leaders of business units or geographies) and insufficient attention is placed on what might happen, both good and bad.
- The strategy is not shared across the organization, with incentives tied carefully and closely to the actions necessary to achieve enterprise (and not just personal or team) objectives.
- Insufficient attention is paid to changing internal and external conditions (which lead to changes in risk, both adverse and positive). As a result, changes to strategies are not made and it’s full steam ahead into the iceberg.
- Failures in leadership. I was with one company where the majority of employees had lost faith in both the organization’s leadership and their vision.
- While the overall intent and direction are fine, goals are set that are either beyond what can be achieved (so people give up) or are too easily achieved (so people stop when they are reached and focus on personal objectives).
I am sure there are more.
I welcome your comments.