According to a study by Harvard Business School, 90% of organizations fail in the implementation of their well-formulated strategies.
This is due to a lack of adequate communications, structured approach, resource allocation & training, and performance management reviews.
Management understands the importance of a strategy. It is the choice that you make that sets the direction of your company through the articulation of a clear vision, mission, core values, strategic results, and initiatives that will drive the implementation of your strategy.
Strategic direction may be oriented towards growth, expansion in new markets, adopting new technologies to render innovative products or services, cost management and realization of higher returns. But, once strategies are articulated and documented, they fail to be implemented!
We highlight below some of the most common challenges that companies encounter in strategy implementation.
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Lack of Communication
Resistance from teams is expected for a new strategy rollout. That is why from the beginning, communication should be clear, consistent, and transparent.
Employees should be well informed about changes in their roles, altered approach and objectives, and the expected results & benefits from the new strategy.
Alarmingly, many businesses fail to communicate this to everyone in their organizations, which leads to serious challenges in strategy execution.
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Weakness in the Strategy
A strategy determines a clear direction, timeline, a proper roadmap, and decide the precise roles of employees.
When strategies are devised with company-wide initiatives, it is necessary that the organization first focuses on small achievable goals.
Resources must be flexible to achieve desired results. So, when you are working on your strategy, ensure you have a clear path in front of you to reach your goal.
Consider whether your milestones are achievable or not. If you expect challenges in the path, consider alternatives beforehand.
Lack of Effective Training
Your employees are expected to understand and believe in the agreed upon strategy that was designed, and most importantly they are the main executors of the strategy.
Employees need a corporate environment with growth and learning opportunities to be able to implement the strategy.
That is why training is an important part of successful strategy implementation. If this stage is ignored, the strategy is bound to fail.
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Lack of Resources
For a successful implementation of your strategy, it is important to include team leads, executives, and employees on board. At the same time, the company should be willing and able to invest and allocate budgets and resources.
For a small or medium-sized business, it can be a challenge. That is why it is recommended to focus on quick wins at the initial stage and gradually grow as you discover new realities on the journey.
Lack of Follow Through
Strategy implementation is not a onetime exercise. To make it successful, constant follow up, review, assessment, performing necessary changes are essential.
However, companies forget to organize regular performance management reviews, and finally, strategies fall on the face in the long run.
The above challenges are mostly caused by people not systems or external elements. If you get everyone involved, clearly communicate objectives, and expected outcomes, and train staff as needed, you will successfully execute your strategy.
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