SAN FRANCISCO, Dec. 13, 2013 /PRNewswire/ -- Many leadership teams today fail in execution, despite spending significant time and funds on strategy formulation, according to Sarah Thrift, strategy expert and founder of San Francisco-based Insight Consultancy Solutions, Inc.
Sixty-one percent of C-suite executives say their firms struggle to bridge the gap between strategy formulation and its day-to-day implementation, according to an Economist Intelligence Unit survey[i] published earlier this year.
Strategy expert Sarah Thrift says the focus on execution needs to become the new norm, as a way to bridge the gap.
"The most beautifully formulated and thought-through strategy is no good if you don't make it happen. The recent execution problems with Obamacare are a case in point. Regardless of whether you agree or not with Obamacare, its strategy has been totally blighted by poor execution," says Thrift, whose organization partners with businesses not only for this development process but to bridge the gap between strategy and execution.
When Charlie Rose asked Sheryl Sandberg what Facebook's winning strategy was, she replied "Execution and innovation."
Jamie Dimon, CEO of JPMorgan Chase also opines on the importance of execution, "I'd rather have a first-rate execution and second-rate strategy any time than a brilliant idea and mediocre management."
"Leadership teams often spend months devoted to developing their strategy. They pour over information about the trends for their industry, they consider a vast array of options so as to be able to make the best choices for their strategy - and yet all too often, it soon becomes clear that the strategy is failing not because of its content, but because of an inability to execute on it," says Thrift.
"It's rare to find a leadership team as passionate and obsessed about execution as they are about the formulation of the strategy. An important starting point is for the executive team to acknowledge that status quo behavior will not work. They need to align as a team and ensure their actions embody the strategy. Without this mindset and shared commitment, nothing will work," Thrift says.
With this commitment in place, execution can begin. Execution may include the translation of the strategy into goals and milestones. Or work on communication and employee engagement, another great need Thrift and her team are regularly engaged to address.
Research commissioned by Accenture and SuccessFactors[ii] showed that 80 percent of business leaders recognize that they are not doing their best to communicate strategy throughout the organization. It is hardly surprising, albeit somewhat depressing, that author William A. Schiemann's research cited in the book Performance Management: Putting Research into Action[iii] shows that only 14 percent of employees have a good understanding of their company's strategy and direction.
"If the leadership team are not spending at least as much time making the strategy happen – communicating it, aligning their teams around it, syncing reward and compensation plans to it – then it's never going to work. Successful strategy never ends with a plan. That's just where it begins," she says.
Sarah Thrift is available for interviews and delighted to be approached for guest articles or blogs. Please contact her at [email protected].
About Sarah Thrift
Sarah Thrift is a strategist with a particular knack for problem solving, an entrepreneurial mindset and a passion for enhancing personal and business effectiveness. She founded Insight Consultancy Solutions in 2007 and loves working with organizations who have a real passion for what they do. She began her career at McKinsey & Co and subsequently worked for the UK Treasury advising Chancellor Gordon Brown on Corporate Governance issues in the wake of the Enron debacle. You can read Sarah's insights on her blog http://www.insightconsultancysolutions.com/blog/
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[i] Why Good Strategies Fail: Lessons for the C-Suite, Economist Intelligence Unit, July 2013
[ii] The Link Between Strategic Alignment and Staff Productivity, SuccessFactors and Accenture, April 2011
[iii] Performance Management: Putting Research into Action; Editors James W. Smither and Manuel London; William A. Schiemann is one of the contributors, July, 2009
SOURCE Sarah Thrift