Strategy execution is where the real money is made. This generous list of stats shows exactly how difficult proper execution is, and how to get better at it.
Saying youâre in âstrategic planningâ may sound cooler, but âstrategy executionâ is where the difference is made. Strategy execution is what separates the men from the boys.
The stats show there is, to put it lightly, âquite some room for improvementâ in the strategy execution field. In fact, a measly 2% of leaders are confident that they will achieve 80-100% of their strategyâs objectives.
But donât worry. As you read through this list youâll become ever better at pinpointing the bottleneck in your operations. Youâll soon discover where you need to look to be able to scoop up the generous amount of cash still left on the strategy execution table.
Weâve ordered the stats according to these categories:
Itâs time to be impressed by some cold, hard strategy execution facts⊠so you can impress your colleagues later.
Letâs get this operation rolling!
1. Strategic planning and strategy execution
50% of leaders rated implementation as equal in importance to strategy
68% believe their organization is good at developing strategy, down from 80% in 2012
98% of leaders think strategy implementation takes more time than strategy formulation
61% of respondents acknowledge that their firms often struggle to bridge the gap between strategy formulation and its day-to-day implementation
80% of leaders feel their company is good at crafting strategy but only 44% at its implementation
10% of organizations achieve at least two-thirds of their strategy objectives, with 36% achieving between 50%-67% and 54% achieving less than 50%
2% of leaders are confident that they will achieve 80-100% of their strategyâs objectives
2. Formal systems and processes
11% of companies employ a "fully-fledged" strategic control system
70% of organizations that used a formal process to manage strategy out-performed their peers
77% of successful companies have an established mechanism to translate their strategy into operative terms and evaluate it on a day to day basis
80% of the companies have at least one formal system for managing commitments across silos but 20% of managers believe that these systems work well all or most of the time
75% of successful companies have a formal and pre-established system to inform on and manage their strategy.
11% of âbest strategy executorsâ say there is no specific method or process by which lessons learned are fed back into strategy formation, versus 37% of other companies.
3. Budgeting and business priorities
60% of organizations do not link their strategic priorities to their budget
70% of middle managers and more than 90% of front-line employees have compensation that is not linked to the strategy
64% of successful companies build their budget based on their strategy, rather than on past behaviors
66% of HR and IT organizations develop strategic plans that are not linked to the organization's strategy
86% say prioritizing and funding the appropriate initiatives/projects is very important or essential for competitiveness
76% of successful companies focus on a limited number of strategic initiatives to reach their objectives
24% say one of the main reasons strategic initiatives succeed is the initiative receives sufficient funding
7.5% of strategy potential is lost to failure to have the right resources in the right place at the right time
63% of successful companies have all their business units aligned to their overall corporate strategy
51% of âbest strategy executorsâ have aligned their strategy with actual business model well, versus 6% of all other companies
92% of organizations do not track the key performance indicators that tell them how well they are doing in competition
37% say one of the main reasons strategic initiatives succeed is a good fit between specific initiative and general strategy
37% of companies are âsomewhat ineffectiveâ or worse at balancing risk of strategic initiatives
35% of companies are âsomewhat ineffectiveâ or worse at strategic initiative prioritization
4. Alignment
In 2002, 90% of well-formulated strategies failed due to poor execution. Today, in 2016, this number has dropped to 67%
30% cite failure to coordinate across units as the single greatest challenge to executing their companyâs strategy
25% say measuring implementation is the toughest challenge
88% say successfully executing initiatives/projects in order to deliver strategic results is very important or essential for competitiveness
46% believe their organization is good at implementing strategy
33% of leaders rate their organization as poor or very poor at implementing strategy
55% say their company is good or excellent at prioritising and funding the appropriate initiatives/projects
4.5% of strategy potential is lost to poor action planning
46% say their company is good or excellent at successfully executing initiatives/projects in order to deliver strategic results
72% say feeding lessons from successful strategy implementation back into strategy formulation is very important or essential for competitiveness
40% say their company is good or excellent at feeding lessons from successful strategy implementation back into strategy formulation
77% say feeding lessons from failed strategy implementation back into strategy formulation is very important or essential for competitiveness
33% say their company is good or excellent at feeding lessons from failed strategy implementation back into strategy formulation
73% of âbest strategy executorsâ have been successful executing strategic initiatives in last three years, versus 53% of all other companies
39% say one of the main reasons strategic initiatives succeed is skilled implementation
32% say one of the main reasons strategic initiatives succeed is good planning
5. Leadership and governance
 70% of leaders spend less than a day a month on reviewing strategy
85% of leadership teams spend less than 1 hour per month discussing strategy
20% organizations review strategy execution monthly
80% of managers say that their goals are limited in number, specific, and measurable and that they have the funds needed to achieve them
96% think leadersâ bonuses should be linked to successful strategy implementation
93% think that senior leadersâ scorecards should be linked to the implementation efforts, and that leaders need to report on the ongoing progress and show their support among everyone involved
78% feel recognized for their implementation efforts in their organizations
67% of leaders believe their organization has the talent required to successfully execute
51% say one of the main reasons strategic initiatives succeed is leadership buy-in and support
29% of âbest strategy executorsâ have C suite executives feeding insights gained for the initiative into the strategy-making/implementation process, versus just 13% of all other respondents
39% of âbest strategy executorsâ have C suite executives securing resources for the initiative, versus just 22% of all other respondents
29% of âbest strategy executorsâ say those involved in setting high-level strategy are also closely involved in its implementation, versus 23% of other companies
38% of companies are âsomewhat ineffectiveâ or worse at strategic initiative governance
24% of companies are âsomewhat ineffectiveâ or worse at strategic initiative selection
49% of companies are âsomewhat ineffectiveâ or worse at strategic initiative resource allocation
4.1% of strategy potential is lost to blurred accountabilities
60% to 100% could be the increase in value if management were to realize the full potential of its current strategy
6. Communication and culture
42% of managers and 27% of employees get access to the strategic plan
95% of employees do not understand their organization's strategy
84% of all staff members are clear on their organizationâs top priorities
44% rank aligning the implementation of strategy to company culture as toughest challenge
80% of the workforceâs primary motivators for putting extra energy into the change program are not tapped into by the leaders
Past performance is two or three times more likely than a track record of collaboration to be rewarded with a promotion
73% of successful companies have a formal mechanism to communicate their strategy
Fewer than 33% of senior executivesâ direct reports clearly understand the connections between corporate priorities, and 16% frontline supervisors and team leaders do
60% of leaders think less than 20% of the work force has at least a basic understanding of company strategy and can explain it
37% say gaining peoplesâ support across the whole organization is the toughest implementation challenge
Nearly 90% of middle managers believe that top leaders communicate the strategy frequently enough
30% say communicating change is the toughest challenge
25% say one of the main reasons strategic initiatives succeed is the ability to manage organisational change
45% say ensuring staff members take different actions or demonstrate different behaviors is the toughest implementation challenge
20% of staff members resist implementation initiatives. The group showing the most resistance (51%) is middle management
In 2016, the top three reasons strategy implementation is failing are 1) Poor communication, 2) Lack of leadership and 3) Using the wrong measures
25% say one of the main reasons strategic initiatives succeed is good communication
5.2% of strategy potential is lost to poor communications
28% say one of the main reasons strategic initiatives succeed is being able to attract skilled personnel
65% of companies are âsomewhat ineffectiveâ or worse at introducing change caused by strategic initiatives
20% believe their company would promptly address workers that donât collaborate with colleagues but do reach their objectives. 60% believe it would be addressed inconsistently or after a delay, and 20% believe it would be tolerated
7. Agility and change
29% of organizations react so slowly that they canât seize fleeting opportunities or mitigate emerging threats
24% of organizations react to opportunities quickly but lose sight of company strategy
20% of managers say their organizations do a good job of shifting people across units to support strategic priorities.
11% of managers believe that all their companyâs strategic priorities have the resources required for success, but 51% could secure resources for attractive opportunities outside their strategic objectives
89% say formulating strategy appropriate for changing market conditions is very important or essential for competitiveness
64% say their company is good or excellent at formulating strategy appropriate in changing market conditions
Companies that actively and quickly reallocate capital expenditures across business units realize a 30% higher than average shareholder return
Which, at the bottom line, meansâŠ
65% of âbest strategy executorsâ benchmark financial performance well above average, versus 18% of all other companies
