Operational pitfalls to strategy execution

Managers often believe that execution equals alignment, and when execution fails, they assume it indicates a breakdown in the command chain. For example, in 1987, Mintzberg revealed that only 10% of strategies were executed as planned. In this blog, we focus on operational strategy execution barriers caused by weak preparation. You might also want to learn about the structural barriers to strategy execution from here.

Studies show that 60-80% of an organization’s employees are not engaged because they fail to see how their efforts connect to the company’s overall strategy. Companies with high employee engagement achieve four times higher profitability compared to their peers.

1. Lack of focus

A strategy defines the organization’s choices about what to do and what not to do. Most organizations struggle with a lack of focus. It’s not uncommon for a small organization to run over 100 projects without clear prioritization, which frustrates employees when nothing seems to progress.

The success of strategy execution depends on the performance of the projects and activities that comprise it. Therefore, you need to ensure that you have the right portfolio and set clear priorities. Effective organizations limit their strategic choices to a handful of objectives. Even then, the number of strategic projects contributing to a few objectives may be high since a single objective can involve many projects. Deciding what the organization will not pursue or deprioritize is a difficult task for any management team. When management fails to make these decisions, the organization loses the resources needed to execute strategic projects.

2. Lack of engagement and alignment

Many organizations effectively translate strategy into objectives, which they cascade down the organization and track for progress. Low engagement often stems from employees not being involved in strategy creation, or their opinions not being considered. Without open discussion, people feel that strategy is imposed on them. Additionally, vague objectives make it difficult for employees to understand how their work ties into the strategy, leaving them unsure of “what’s in it for me?”

Horizontal alignment between units remains the biggest challenge in strategy execution. Organizational silos are strong, and now more than ever, internal cooperation is essential. More projects span multiple organizational units, and resources are shared across the organization. Achieving alignment with internal stakeholders improves internal cooperation and the organization’s ability to execute, but it requires significant time and effort.

3. Weak performance management

Managers aim to create agile organizations, but agility requires a culture of experimentation. Organizational culture and management systems determine whether experimentation feels appealing or intimidating. Many strategies are transformational, requiring more than small, incremental improvements.

Organizations often expect employees to seize opportunities and take on challenging assignments. While this behavior has its advantages, it also poses risks to careers and recognition. Management routines and exception handling form the backbone of performance management. Since it’s impossible to create detailed strategic plans that anticipate every potential event, performance management routines—like frequent reviews—are essential for quick responses to problems or opportunities. In weak-execution organizations, employees lack both the understanding and the information to assess how their decisions affect the bottom line, so decisions often end up with top management.

Weak-execution organizations also tend to have ambiguous objectives. Some organizations set goals like “we will be number one in our industry,” which lacks the framework that SMART goals (Specific, Measurable, Achievable, Realistic, Time-based) provide. Improving an organization’s performance culture starts with focusing on performance management.

4. Fading communication

Many organizations communicate strategies at launch events, but over time, the communication diminishes. A common problem is having too many focus areas, priorities, objectives, and strategic projects. Management teams may spend weeks preparing strategies and remember most of them, but employees hear the strategy once. This causes confusion and leads to the perception that communication is inadequate.

Few organizations condense their strategies into easy-to-understand documents that are readily available to employees. A typical case involves a 200+ page PowerPoint strategy hidden in management folders. Without access to written material, it’s impossible for employees to fully grasp the strategy.

Because strategy execution consists of ongoing actions, a single kick-off meeting is insufficient. Only continuous communication and effort to instill new habits will lead to lasting change. Typically, only a fraction of employees are involved in executing the strategy. Without ongoing communication about progress, most employees remain unaware of whether strategic plans are advancing.

Strategy is what people do – what do you want your people to do?

Amplon software makes strategy execution easy

With Amplon’s powerful strategy execution software  your team can avoid operational pitfalls in implementing strategy.

The software uses the Hoshin Kanri principles to engage all employees and to visualize the strategy. With Amplon companies can design a bottom-up strategy and can easily adapt this software to their culture and processes. Amplon.io makes it easy to share common development projects and activities ensuring focus in the organization. Instant monitoring of strategy through software dashboards allows the immediate reaction to any deviation.

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Top results are only achieved with a well-implemented strategy.

Elements of effective strategy

Effective strategy requires clear objectives, aligned actions, and consistent evaluation. Key elements of an effective strategy include setting specific, measurable goals, ensuring organizational alignment, and maintaining a feedback loop for continuous improvement. By focusing on these elements, organizations can enhance their strategic execution and drive long-term success.

Just like life jackets keep you afloat, recognizing structural barriers—such as misaligned company culture and unclear decision rights—helps keep your strategy implementation on course

Structural barries for strategy implementation

Structural barriers like misaligned company culture and unclear decision rights can derail strategy implementation. Overcoming these challenges is essential for translating strategic goals into actionable outcomes and ensuring successful execution.

Compass symbolizing the future, representing the Hoshin Kanri strategic planning framework that aligns organizational direction and goal achievement

What is Hoshin Kanri

Hoshin Kanri is a strategic planning method that aligns an organization’s long-term vision with its daily operations, ensuring continuous improvement and clear communication across all levels. By focusing on setting and achieving breakthrough objectives, Hoshin Kanri helps organizations stay on track toward their strategic goals.

This picture is linked to the blog posting about 8 tips for creating winning strategies

8 tips for world class strategy execution

Effective strategy execution requires clear communication, prioritization, and continuous monitoring. Key tips include setting measurable goals, ensuring leadership commitment, fostering cross-functional collaboration, and maintaining flexibility to adapt to changes. Implementing these practices can significantly enhance the success of your strategic initiatives.

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What if your organization were perfectly aligned to execute its strategy? Amplon makes the alignment easy.