Even the most compelling strategic plan is useless if it isn’t implemented. But in many companies no one is driving execution. The CEO/President is ultimately responsible for the vision and strategy of the company but is often so overloaded it’s hard for them to stay on top of strategy implementation. And the COOS and CFOs are too involved in day-to-day activities. So who in the company communicates strategy to employees? Who drives the change initiatives needed to carry out the strategy? Who makes sure that decisions at all levels are aligned with strategic initiatives?
Often, no one!
With responsibilities for strategy implementation so diffuse and uncoordinated, the high failure rate for strategy execution is no surprise. Did you know that: 90% of employees say they don’t know their company’s highest priorities? Only 19% feel a strong sense of commitment to the company’s goals? Less than 10% of employees understand their company’s vision/strategy? Less than 25% of employees have their performance evaluation linked to the company’s strategy? Over 80% of leadership teams say they spend less than one hour a month discussing strategy execution?
No wonder research shows that 83% of all strategies fail to get fully implemented. How can employees create value for customers and shareholders if they are not aware or don’t understand their company’s strategy!
It doesn’t have to be this way! There are now strategy execution management systems that integrate an organization’s vision and core values with the daily activities of its people. The purpose of these systems is to successfully carry out the strategic plan in order to realize the organization’s vision. (More to come)
(The statistics is this blog post came from a survey conducted by Harris Interactive Inc. and Franklin Covey and a Harvard Business School article Q&A with Robert S. Kaplan.)