The gap between strategy and execution

A study by OnPoint Consulting which surveyed the gap between strategy and execution. Of the leader’s surveyed 49% perceived a gap between their strategies and execution (the ability to make their strategies happen) and of these 64% didn’t have full confidence that their companies would be able to close the gap! Those companies that successfully close the strategy – execution gap exhibited the following factors:

• Change is well managed by top management
• Decisions and actions are well coordinated across different levels of management
• The actions and decisions of top management are consistent with their espoused objectives, values, and priorities

The research highlights the following key lessons for leaders looking to close this strategy – execution gap:

• Successfully achieving execution takes more than clarifying and communicating the organization’s strategic direction. Many businesses put all their energy into crafting and gaining agreement on their vision and strategy. They frequently do not attend to clarifying the assumptions about what it will take to achieve the strategy (what will be required operationally) and the priorities for action.
• Few organizations appear to ask whether or not they have the proper management systems in place to support the achievement of the strategy. If the strategy calls for “innovation,” do they have systems in place to facilitate organizational learning and creative thinking (or do they just assume that asking leaders to ensure they happen is sufficient)?
• It is also important to go beyond gaining understanding and acceptance of the strategy throughout the organization. Vision and strategy must be translated into action at each level of the organization and, beyond that, these actions must be reviewed by senior management to ensure they are mutually supportive and well coordinated across work units and levels (rather than everyone going off and doing what they think is best for their work unit) and monitored to ensure performance expectations are met or to recalibrate the plan when new information becomes available.
• Leaders must behave in a way that is consistent with organizational values and priorities. You can’t expect people to trust you or follow you if are not willing to live by the same values and consistently support the same priorities that you require of others. This idea is hardly a newsflash. Yet, the fact that it shows up in OnPoint’s survey as a top driver of both execution effectiveness and employee confidence shows that “walking the talk” still counts—and counts big.

The strategy-execution gap is not new to most leaders. Leadership is about initiating and leading change. This requires strategy, the casting of vision as well as guide the implementation and execution of the strategy. To be successful leaders need to be as diligent in guiding the execution as they are at setting and communicating strategic direction.

Technorati Tags: Strategy, Execution, Leadership, Communication, Change, Values

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Tagged as: Execution, Strategy