Why Strategy Fail
There are 5 basic principles in the design of strategies that we apply in each of our transformation processes and business turnaround. As a strategy consulting firm, we are totally convinced that it is not enough to have a good idea or even a perfectly designed strategy, it is necessary to articulate it and for this it is necessary to orchestrate the execution of the strategy at all levels within the organization, it is essential that the sense of belonging of each collaborator on the result of the company is visible even at 30k feet high.
Strategies formulation should lead us to a growth outside of any tendency generated by the inertia of the environment, it is even very important to stand out outside of any organic growth, however there are two major stages in the transformation process which are intimately dependent on each other, it must start from Returning to the basics to take the company to its full potential.
#1: “COMPLEXITY IN THE VISION AND STARTING TOO EARLY”You don’t always need a complex and perfectly defined strategic plan, you just need to have a clear and specific unified VISION
#2: “LACK OF LEADERSHIP”
LEADERSHIP IS ESSENTIAL IN THE DEFINITION AND MANAGEMENT OF THE STRATEGY, IT MUST ENABLE THE TRANSFORMATION PROCESS AND ENSURE THE RESOURCES FOR THE ACHIEVEMENT OF THE ESTABLISHED GOALS AND OBJECTIVES
#3: “RIGHT PEOPLE IS NOT INCLUDED ON STRATEGY FORMULATION”IT IS VERY COMMON THAT THE “STRATEGY” BECOMES AN EXERCISE OF THE “SENIOR MANAGEMENT OR C’LEVEL”, HOWEVER IN OUR EXPERIENCE WHEN YOU INVOLVE THE OPERATIONAL TEAM OF THE ORGANIZATION IN AN ASSESSMENT TO FORMULATE SCENARIOS YOU OBTAIN A GREAT COMPETITIVE ADVANTAGE OVER THOSE WHAT THEY DON’T DO
#4: “LACK OF SPECIFICITY”
LINKED TO THE COMPLEXITY IN THE DEFINITION OF OBJECTIVES AND GOALS, IT CAN MAKE THE STRATEGY AND THE ACHIEVEMENT OF THE VISION UNMANAGEABLE. WE MUST SEEK THAT THE VISION IS QUANTIFIED AND DIMENSIONED IN ORDER TO BE ABLE TO FOCUS ON WHAT IS TRULY RELEVANT TO ACHIEVE IT.
#5: “LACK OF INTEGRITY”
Some behaviors that destroy and do not add value to the strategy are: Be upfront about our limitations, Only say that we agree with something if we actually agree with it, Speak our minds about things we’re not happy about
#6: “THE STRATEGY DIVORCED OF CORE COMPETENCIES”
Core competencies are what have taken your company this far, they’re the reason customers see value in a transaction with your company. Not taking advantage of these key organizational strengths when developing your strategy means you’re relying heavily on competencies that your organization hasn’t quite mastered yet.
#7: “LACK OF RESILIENCE”
being the best isn’t enough, if people aren’t actually willing to get up and make changes…Strategies fail for exactly the same reason. You can have the best strategy in the world, but if the people around you are too set in their ways to change, then you’ve got a major problem.
#8: “LACK OF DILIGENCE”
Creating a strategic plan is really just the beginning. The riskiest point in the life-cycle of a strategy is in the first 6 months of its existence. This is where so many strategies fall by the wayside or lose momentum. Try to establish a strategic thinking discipline through:
- Book regular strategy meetings into your diary.
- Send out reminders to people a few days before those meetings that they need to update their goals
- Agree upon a consistent report that you will use for each meeting.
- Provide concrete resolutions in those meetings to issues that may cause problems for your strategy.
#9: “IMPOSSIBLE OR UNREALISTIC GOALS”
Formulating goals that are ambitious yet still realistic requires a solid understanding of:
- previous performance
- current resources
- organizational knowledge.Knowing how you have previously performed will give you a good estimate of future performance. You should also use your organization’s current resources and knowledge to help you forecast future performance.
#10: “LACK OF ACCOUNTABILITY”
accountability is a common culprit as to why strategies fail. Organizations that don’t clearly articulate the employees that own goals and different parts of the strategy leave themselves susceptible to failure before they’ve even started executing the plan.