7.2. Why Do Strategies Fail?
A solid strategy is only half the battle. In our experience, the majority of the strategies that have never come to successful fruition have failed not because they lack a clear, viable vision; rather, they are gathering dust because they have been poorly implemented. Unfortunately, even the best strategies do not spontaneously guide performance. Comprehensive actions to implement a strategy must be planned, carried out, and monitored. Moreover, no matter how talented and hardworking they may be, top managers cannot implement a strategy by themselves. A key implementation contribution must be made by middle managers and by those others who manage the systems and people who will make or break the strategy.
An early implementation step should be widespread communication of the strategy. The downside of communication (a possible leak to competitors of information that they probably know anyway, just by observation in the marketplace) is far less serious than the downside of noncommunication (failure to implement the strategy).
Once people understand the strategy, management should establish an infrastructure that supports strategy implementation. That infrastructure needs to be established at the Organization, Process, and Job/Performer Levels. To our eleven questions, therefore, let us add two more:
Questions that address strategy implementation (Element 5):
What financial and nonfinancial measures will we use to assess the viability of the strategy?
How does our strategy implementation plan ensure that:
Departmental goals, design, and management support the strategy?
Process goals, design, and management support the strategy?
Position/people goals, design, and management support the strategy?
The "$ to shareholders" component of the system is a measure of how well the organization has addressed these thirteen questions.