When it comes to executing strategy, the research is conclusive: it’s successful only about 50% of the time. This means that the time and effort you and your team invested in crafting that innovative growth strategy often either fell short in execution or failed to deliver the expected outcomes.
So, what’s the most common reason strategy goes wrong like this?
The short answer is that strategy typically fails because of a lack of organizational commitment.
Let me explain what I mean by that.
Going Beyond Consensus
When people discuss putting together a strategy or a plan, they often mention the need to reach a “consensus.” That means the goal is to propose a plan or organizational direction that nobody disagrees with or at least doesn’t feel strongly enough to speak up against.
You might hear people say “Yes, I’m fine with it,” or “Sounds about right,” or maybe even “It’s OK by me.”
The problem is that this kind of response isn’t enough to ensure the successful implementation of the strategy.
You need to go beyond mere consensus and get everyone’s commitment.
Signs of Commitment
If we need more than consensus, how do we get the kind of commitment from the organization that can help ensure that we successfully implement our strategy?
How do we get individuals inside the organization to make the commitments and sacrifices we need?
Here are four factors you, as a leader, can establish within your organization to help create the kind of commitment you’re looking for.
1. Build a Culture of Commitment
Some organizations have established bad habits, like making commitments that no one follows. Then, no one is held accountable when the commitments aren’t kept. You can’t have this kind of culture if you want to execute well on your strategy. You must establish a rigid commitment to getting things done on time and budget — and hold people accountable if they fail. Yes, this kind of culture can rub some people the wrong way. It can feel like a hard place to work. However, organizations with cultures like this execute their strategies much faster than those that don’t.
2. Top Management Involvement
People inside the organization take their cues from how top management spends their time. Suppose executives like the CEO show up at some of the strategy team meetings and make time to review metrics. In that case, it’s a clear message to the team that the strategy is a top priority for the company because top leaders are spending their valuable time on it. If, on the other hand, top management is nowhere to be found, it’s unlikely you can get commitment from the organization for the strategy.
3. Commitment of Resources
It should be evident that for your strategy to be successful, you’ll need to ensure that your team has the time and resources to devote to its execution. But don’t overlook how important it can be to simultaneously take other projects off the table. This can send a powerful symbolic message to the team about the priority level of this particular strategy. Not only are you committing the necessary resources to execute it, you’re also willing to torpedo other projects simultaneously. This helps send a clear tactical and emotional message to the organization.
4. Set Leader Expectations
One of the most explicit ways you as CEO can message the organization about the importance of committing to a strategy is by holding the team leader responsible for executing it to a high-performance standard. This helps set a clear expectation that this leader and their team need to perform — which then sends a clear message to the rest of the organization how vital this endeavor is. If the organization sees any performance gap in how this leader is held accountable, you risk losing their commitment.
Adjust on the Fly
We all know unexpected things happen, and predicting the future can be nearly impossible. The key is to adjust and learn from whatever goes wrong. However, the more committed your organization is to the strategy you set out to accomplish, the more likely you are to adjust and adapt in ways that result in the successful execution of the original vision for the strategy.