June 4, 2020
If your organization struggles to implement its corporate strategy, you’re not alone. 70% of business leaders say they have little confidence in their ability to translate strategy into action and 67% of all strategic initiatives fail for lack of execution.
How did we get here? How is it possible that so many organizations — even very successful ones — would fail at something as important as corporate strategy?
The reason is a fundamental misunderstanding of why strategy execution fails. Business leaders frequently blame alignment, lack of budget or tools, internal politics, or communications breakdowns. But those alleged causes are either myths or symptoms of the real issue.
Strategy execution fails because of poor orchestration. Most organizations suffer from an inability to align the right resources to the right work at the right time, because they manage strategy, work, and people separately. Strategy execution is the process of aligning all three across several processes that are typically managed in silos.
Nailing strategy execution requires business leaders to recognize that fast resource allocation and deployment is the fuel for strategy execution — improving executive and business alignment, influencing cultural change, boosting business agility, and delivering on key initiatives, faster.
The Need for Speed
Since the year 2000, 52% of the S&P 500 have disappeared; gobbled up by competitors, withered into obscurity, or cast outright into the history books. Digital disruptors like Amazon stalk the business landscape relentlessly, moving quickly into new territories with a seemingly limitless ability to execute. Globalization has increased volatility, as threats like the COVID-19 pandemic have forced businesses to rapidly reassess their strategies, redesign their workforces, and drive transformative change faster than ever.
The implications are clear. Organizations need to develop and implement their corporate strategies faster and better than ever. Today’s strategies must be elastic and informed, and the execution of those strategies must be fast and true.
The ability to identify, access, and deploy talent to the right objectives is the difference between winning and losing. 60% of businesses say it takes more than a year to launch a new product, putting them at a severe disadvantage in a hyper-competitive landscape.
Organizations that can quickly mobilize and re-mobilize the workforce to flex with changes in strategy simply perform better. A recent McKinsey study found that “fast reallocators” of talent perform 2.2 times better than their slower counterparts when it comes to returning value to shareholders.
Successful talent allocation and reallocation requires a central system for documenting not only the skills and capabilities within the employee base, but also how those skills are currently being deployed against strategic objectives.
Ready to learn more? Access our exclusive eBook to learn how the best-performing organizations nail strategy execution.