To Solve The Strategy-Execution Gap, Start Creating Executable Strategy

Do you prefer watching to reading? Then watch the interview on bridging the Strategy-Execution gap with more in-depth guidance on how to implement executable strategy.

Strategy execution is notoriously difficult and known for its high failure rates. In looking for solutions, many have turned their heads to more effective execution practices. Models, frameworks and ideas to improve and make strategy run better. Better communication, better culture, better project management, better processes, better organization, and so forth.

Such focus on execution is understandable. After having spent considerable time and money on formulating a new strategy, executives are eager and impatient to move to a swift execution. And improving the way strategy execution is done is helpful too, since too many problems in strategy execution are indeed a result of lacking or ineffective strategy execution practices.

However, there’s another problem that is often overlooked and that needs to be resolved first: many strategies aren’t very executable in the first place. Because of the way they have been developed and formulated, these strategies are hard or even impossible to execute by the people and organization that should execute them. Therefore, before moving on to execution, companies have to make sure that their strategy can be executed.

To do that effectively, one needs to understand what executable strategy is, what impedes creating it, and, most importantly, how to create it. Based on research and personal experience as executive strategy consultant over the past two decades, there are three identifiable problems that hinder effective strategy execution and, correspondingly, three components that make a strategy executable.

Strategy That People Can Understand

The first problem with many strategies is that they are too vague, abstract, complex, or otherwise incomprehensible for people to understand. When people see, hear, or read the strategy, they may generally understand the meaning of the words used, but they have no idea what it actually means for them. That last part is essential. Understanding a strategy doesn’t simply mean that you understand the words. It means being able to translate the strategy to one’s own context, job and role, and to tactics and activities in order to execute an organization’s strategy. A strategy’s purpose is to direct a group of people to a shared goal, and when the direction is not understood, it leaves people stranded.

Thus, the first component of executable strategy is that it is understandable. This means the following:

• Plain, jargon-free language that people at all levels can understand. Don’t try to use “strategic” language; instead say what is really meant.
• Concrete, factual and detailed, not just vague high-level statements. Don’t shy away from becoming “operational.” Also in strategy, the devil is in the details.
• Clear explanation of how things will be different from today. People always compare the strategy to how things are now. Explicating the differences clarifies what the new strategy implies.
• Active support in helping people translate the strategy to their own work. Don’t assume people will understand what the strategy means for them. Without active support, it’s very hard for them to make the translation on their own.

Strategy That People Want To Execute

The second big problem and cause of the strategy-execution gap is a strategy that is not sufficiently embraced by employees across the organization. There is not enough commitment, engagement, buy in, or motivation at the employee side to execute the strategy that was formulated. This is often interpreted as resistance and seen as a change management problem with targeted, or even forceful efforts to make employees execute the strategy anyway.

However, the problem mostly started already earlier on in the process, during strategy formation. People generally want to have a say in what they do and be in charge of their own work. Therefore, the solution to create strategy that people als want to execute lies in the following:

• Involve employees from all levels in strategy formation. People are much more committed to something they have helped to create. Include as many as you can—including those who are critical—to have them on board early.
• Let employees contribute to the strategy from their own role and perspective. Including more perspectives makes the strategy better and more reliable. People cannot oversee the whole, but they can add from their perspective.
• Prioritize their concerns and needs over what “objectively” seems the best strategy. Any strategy is as good—or bad—as its execution. There is no point in envisioning a “great” strategy that no one wants to execute.
• Take people’s issues, ideas, and insights seriously, also during execution. The strategy should be owned by everyone in the company. Taking people’s feedback seriously leads to better strategy, more ideas, and more engagement.

Strategy That People Are Able To Execute

The third big problem in strategy is that the strategy as it is formulated doesn’t really match the reality of the organization and its people. Many strategies start “outside-in,” with a thorough competitor analysis and PESTLE analysis of external trends, or with stating ambitious but not-so-realistic objectives. Of course, both have their place, but when overemphasized, these lead to a strategy that the organization is not able to execute because it’s simply too far off from what the organization—and its people—can do.

Executable strategy, therefore, is strategy that is closely aligned with the organization’s assets and capabilities. This means the following:

• Start “inside-out,” from the organization’s unique assets and capabilities. This is where the difference from the competition is made. It is also a more stable and reliable foundation than external trends and uncertainties.
• Take the present as starting point; not an imaginary, unrealistic future state. Imagination and radical ideas have their place, but strategy is largely a continuation of the present. Embracing the past makes it more realistic and is the only way to move forward.
• Allocate sufficient time and resources at all levels to execute the strategy. Too often execution has to be done “on the side.” Not giving people the time and resources to actually execute it, makes the strategy inexecutable from the start.
• Don’t plan too far ahead since any plan is outdated as soon as it is made. Detailed planning is key, but only on the short term. Be strict and precise about what should be done the next period; update the plan thereafter.

Does having an executable strategy solve all implementation problems? Of course not. But, when combined with the strategy execution practices mentioned in the beginning, having a greatly formulated strategy that is also executable and practicable will substantially improve your chances.