In an ever-evolving environment, with inflation, raw material availability, and trade tensions… Adapting organizations, whether public or private, is crucial. It is widely accepted that strategic execution is an essential element for any organization’s success. However, many companies struggle to successfully carry out their strategic initiatives. According to a 2020 study by the Project Management Institute (PMI), 11.4% of every dollar invested in projects is wasted due to poor performance. So, how can we improve our strategy execution? The answer may well lie in adopting strategic execution software like proPilot.
The 3 States of Strategy for Innovative Organizations
It’s crucial to understand the difference between the three states of strategy:
- The “Master Plan” view which incorporates the organization’s strategic vision. It is structured around strategic axes representing guiding principles and the plan’s vision.
- Operationalizing the Master Plan: This involves converting the strategic vision into data-driven strategic management that adapts to the organization’s reality. This step is key to ensuring the effective rollout of the strategy within the organization.
- Visualization and Reporting: These are the various views prepared to support the monitoring of progress and achievement of goals. This step should consider a persona-based approach to provide the various stakeholders (governance, PMO, operational teams…) with reports tailored to their specific needs.
Primary Causes of Strategic Execution Failure
According to a Harvard Business Review survey, only 8% of business leaders believe their company excels at strategy execution. The main causes of strategic execution failure are varied: inadequate communication, lack of visibility on progress, resistance to change, and inadequate performance measurement.
- Communication: A lack of clear and concise communication regarding objectives and expectations is a major cause of strategic execution failure. Without effective communication, employees may not understand the strategy or their role in its execution.
- Lack of Visibility: Without proper insight into the progress of strategic initiatives, it’s hard to make informed decisions. Real-time performance visibility allows leaders to adjust the strategy as needed and quickly address potential issues.
- Resistance to Change: Adopting new practices or technologies can meet resistance from employees. According to a McKinsey study, 70% of transformations fail due to employee resistance and lack of engagement.
- Performance Measurement: Performance measurement can often be inadequate, focusing only on financial metrics. Comprehensive performance measurement should also consider human, environmental, social, and governance impacts.
How proPilot Can Make a Difference
proPilot, as a strategic execution software, aims to address these challenges. It facilitates effective communication and provides clear visibility on the progress of strategic initiatives. Moreover, it fosters employee engagement and facilitates the adoption of new practices. Lastly, proPilot allows for comprehensive performance measurement, not only covering financial metrics but also considering human, environmental, social, and governance impacts.
Adopting a strategic execution software like proPilot can indeed make a real difference in the success of your strategic initiatives. It enables better communication, greater visibility, easier adoption of new practices, and comprehensive performance measurement. Don’t wait any longer, make proPilot your ally in executing your strategy.