Many a strategic plan ends up gathering dust on shelves or on the corner of a desk rather than being effectively implemented in an organization. That’s an odd place for a strategic plan to end up considering how important they are, at least to those who initiate them.
In one survey, 88% of C-level executives indicated that executing strategic initiatives successfully is “essential” or “very important” for their organizations’ competitiveness over the next three years, yet 61% of those same executives acknowledge their firms often struggle to bridge the gap between strategy formulation (aka the fun part) and its actual implementation (aka that hard part).
Another survey indicated that only 2% of business leaders are confident that they will achieve 80–100% of their strategic objectives, and still another found that 80% of business leaders think their company is good at crafting strategy but only 44% feel they are good at implementation.
I’ve worked with leaders in the development of their annual strategic plans over the years. It’s exciting and fun to think about all that great “stuff” their business is going to accomplish in the upcoming year. It’s a cerebral activity which means there’s no blood, sweat, tears or discomfort when talking about innovation or how the business will “disrupt the industry” while at a comfy offsite location in the mountains or on the shore.
Why the disconnect between thinking and doing?
From a more practical standpoint, we tend to underestimate the effort (or perhaps overestimate the zeal of employees) that is needed to put the plan into motion. The effort and pain of making change must be less than the pain of keeping the status quo. It’s really as simple as that. Things have to be really bad for the leadership and the rank and file to want to change their day-to-day activities. If things are that bad, they may be more inclined to head for the door than greener pastures anyway.
Here’s another reason for the disconnect between thinking and doing. The execution of a plan creates immediate pain (blood, sweat, tears, effort and discomfort) to some degree while the benefits derived from it are out in the unknown future somewhere. Additionally, a new annual plan and the activities that come with it are often seen as a one-off event and thus are not incorporated into the daily roles and responsibilities of each employee. The employees may see new responsibilities and activities as just one more reason to leave if they aren’t on board with the plan or are not even told about it.
I believe that the main reason for the gap between the creation and execution of an amazing annual strategic plan lies in the overall health of the organization’s culture. Organizational culture may seem intangible and thus unmeasurable, but it influences how employees behave, make decisions and work together toward common goals — including those outlined in a strategic plan, which ultimately determines the overall performance and effectiveness of the organization.
The phrase “Culture eats strategy for breakfast,” which is often attributed to management guru Peter Drucker, has been popularized in various management articles on strategic planning over the past 50 years because it cuts to the heart of the issue, and it’s true. It suggests that no matter how brilliant a company’s strategy may be, if it’s not supported by a strong and healthy organizational culture, it will either fail to be implemented, partially implemented or is likely to fail if it is implemented.
What Drucker was getting at in this pithy statement is that you can create the most beautifully laid out, detailed and usually expensive strategic plan for your business, but if your people aren’t aligned with the leadership and if the vision, mission and values of the company aren’t aligned with what actually goes on at work, then any strategic plan is likely bound to fail.
Here’s the secret.
The health of an organization is directly dependent on its leadership. As leaders go, so goes the company through what they say, but more importantly, what they do. Actions truly speak louder than words, and people will watch and emulate their leaders. Whether intentional or not, leaders create a company’s culture through outward behavior, which oftentimes is an indicator of leadership philosophy that has roots in the heart. In short, a leader’s behavior creates the culture of the business, and in turn, that culture guides the same behavior of the team.
When leaders fail to embody the values they profess, whether explicitly stated on a website or displayed on conference room walls, it fosters toxicity and distrust within the organization. The hypocrisy of “Do as I say, not as I do” generates a toxic work environment, leading to silent resignations (recently called “quiet quitting”) or plans to leave the company outright. In such a corporate setting, a strategic plan becomes the least of priorities.
Servant leadership, on the other hand, prioritizes employee growth and well-being, fostering trust and collaboration. This enables thriving employees and a healthier organization, uplifting all who interact with the business — a rarity today. In such a setting, employees are likely to feel part of the team and more readily embrace strategic plan execution.