Many strategy execution processes fail because firms lack a clear strategy. Often, what is called a strategy is merely a goal or a set of priorities. A real strategy involves making clear choices about what the firm will do and what it will not do. Without clear choices, implementation efforts are likely to fail. Communicating the logic behind the choices is just as important as communicating the choices themselves. It is also important to enable bottom-up initiatives that align with the top-down strategic direction. Instead of top managers selecting initiatives, a system should be designed to do the selection. Changing people’s habits is a crucial part of strategy implementation, and organizations should embrace change rather than resist it.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Lack of action in strategy execution | From lack of action to successful implementation | Improved strategy execution processes and clear choices | Lack of clear choices in strategies |
| Goals vs strategies | From goals to clear choices | Strategies involve clear choices and actions | Lack of clear choices in goals |
| Importance of clear choices in strategy | From lack of clear choices to clear strategic direction | Clear set of choices that fit together to form a strategy | Effective communication and understanding of choices |
| Top-down and bottom-up strategy execution | From top-down to top-driven strategic intent with bottom-up initiatives | Top-down strategic direction with bottom-up experimentation and selection processes | Maintaining strategic intent while enabling employee autonomy |
| Resisting the temptation to select initiatives | From top managers selecting initiatives to a system that does the selection | Internal system for selecting initiatives based on objective criteria | Designing a selection system for strategy implementation |
| Changing habits for successful implementation | From sticky habits to a culture of change | Building practices to counter bad habits and encourage change | Identifying and countering bad habits for successful execution |