- 56% say their biggest challenge is ensuring day-to-day decisions are in line with strategy.
- 56% have challenges allocating resources in a way that really supports the strategy.
- 50% consider setting a clear and differentiating strategy a significant challenge.
- 52% do not feel their company’s strategy will lead to success.
- 64% agree that their company has too many conflicting priorities.
Why do organisation and executive struggle with decision making, aligning priorities, allocating resources and focusing on what really matters?
“The root of the problem is that too many companies grab too hastily for what seems like the next answer to growth. They don’t have a solid framework to decide which set of opportunities will lead to sustainable success. They end up stretched thin, trying to play in too many disparate markets. The winners, on the other hand, stick to a well-articulated path to success: They define the fundamental identity of their company by developing a clear idea of what it does best and how it creates value — and focus investment on the capabilities that matter. Growth then follows as a consequence of the strategy rather than as a set of separate and often unsuccessful initiatives,” said Booz & Company Managing Director and co-author Cesare Mainardi.
The challenge results from a fundamental failure of leadership. It’s the role of the leader to create a clear and compelling direction for their organisation’s and team’s. The survey found the following concerning the strategy and direction:
- A significant number of executives (43%) say their company’s strategy does not fundamentally differentiate the company in the market.
- Nearly half of executives (49%) say their company has no list of strategic priorities.
- While most executives say their company has a clear way to create value, most (53%) say that this “way” is not understood by employees and customers.
As a result organisation and their people are overwhelmed, trying to do too much – running off in all directions – doing work that adds little to no value to what is required for success. It seems that organisations are struggling to find their focus and find themselves distracted, chasing too many initiatives, lacking clarity as to what matters, what creates value and where they should focus their energy. Booz & Company summarised their findings, making the following observation of the organisations they surveyed.
- Do you have clarity as to what success means for your organisation?
- Are you and your employees clear on how you create value in the market?
- Have you align decision making and resources with this vision?