Despite a perfect strategy how things can go wrong

To understand, “Despite a perfect strategy how things can go wrong”, one needs to understand what it takes to “formulate a perfect Strategy and how to Execute the same perfectly”.   How to formulate a perfect strategy: A perfect strategy formulation is a process of using available knowledge to document the intended direction of a business and the actionable steps to reach its goals. A well thought-out strategy:

1. Starts with a Purpose.
2. Considers Current Events.
3. Takes into account internal and external Data, Case Studies and Trends.
4. Has Goals well defined and effectively communicated throughout the organization.
5. Has the flexibility to adapt to changes.

  How to execute a strategy perfectly: Good strategy execution requires a team effort, wherein all managers have strategy-executing responsibility in their areas of authority and all employees are active participants in the strategy execution process. A good strategy execution:

1. Ensures all stakeholders and decision-makers are in unison and in agreement with the strategic plan.
2. Aligns jobs to the strategy, “right man for the job”.
3. Empowers employees thru clear communication.
4. Measures, tracks, and monitors performance thru well-defined KPIs.
5. Balances Innovation and Control.

  So, coming back to, “Despite a perfect strategy how things can go wrong”. The simple answer would be that successfully executing a good strategy is just exceptionally hard. But that is hardly a gratifying answer. There are many other things that are exceptionally hard, but where we succeed, nevertheless. Therefore, to start with, we need to have a good understanding of the problems that organizations face when executing their strategy. When we know these problems, we understand the underlying reasons why strategy execution fails, which helps us find the solutions. Though there could be numerous reasons for problems in Strategy Execution, in my experience the following 5 key reasons are usually the culprit:

1. No or insufficient communication
2. Insufficient or inadequate resources
3. Insufficient management capabilities
4. Strategy is not adapted to changes
5. Poor leadership

To conclude, Strategy Execution has always been the essential complement of Strategy Formulation. In an intensely competitive business environment and with the increasing speed of technology-enabled change, the importance of strategy implementation has increased exponentially. Senior executives recognize the importance of strategy implementation, but a majority admit that their companies fall short. Executing strategic initiatives successfully is extremely “essential” for an organizations’ competitiveness. Most firms often struggle to bridge the gap between strategy formulation and its day-to-day implementation. Poor implementation means that a company’s stated strategy fails to shape what happens in practice. There is no silver bullet to achieve better strategic implementation, but companies that rate themselves highest in this area share a range of characteristics. They report greater levels of C-suite involvement, better feedback mechanisms, more resourcing—particularly providing human resources—for initiatives and more-robust processes.   To sign off, “Vision without action is a daydream. Action with without vision is a nightmare.”   —Japanese proverb