Execution Gap: How to Bridge Strategy and Successful Transformation

The execution gap explains why even the best strategies often fail to achieve their goals. In this video, we explore how to bridge this gap with strong management capabilities, clear communication, and agile adaptation. Learn key tactics to turn your strategic vision into successful, real-world results.

Imagine this: You've just presented a brilliant strategy to your board. Everyone's thrilled, your team is excited, and the industry analysts are already singing your praises. It seems like everything is falling into place for your company's transformation journey. But why is it that so often, even the best strategies sometimes stumble and fall apart during execution?

Today, we're going to dive deep into why even the most brilliant strategies often fall flat when it comes to execution, and more importantly, what you as a leader can do about it. Let's start with a scenario we've all dreamed about. Imagine you've just crafted an exceptional strategy for your company's digital transformation. The board is thrilled, your team is excited, and industry analysts are praising your vision. It feels great, doesn't it?

When an exceptional strategy is matched with first-rate execution, the results can be truly remarkable. Leaders responsible for such transformations receive acclaim from both within and outside the organization. Stakeholders are thrilled, and the company, along with its employees, reaps the rewards of their hard work. But here's the harsh reality: this scenario is far less common than we'd like to believe.

The common issue faced by many organisations is that their leaders craft a strategy that is commendable, yet they significantly undervalue the importance of its execution. It's often said that strategy is three times more difficult to deploy than develop. This explains why so many strategies result in painful execution journeys for everyone involved.

Let's look at some sobering statistics. These numbers paint a clear picture. The gap between strategic intent and strategy execution is enormous, and it's creating a drag on performance and morale while increasing risk exposure. When it comes to the execution of strategy, we often see a familiar pattern unfold, budgets and timelines are frequently exceeded.

Stakeholders grow tired of the constant noise coming from projects and programs due to inadequate orchestration of the transformation. The colourful benefits displayed in the initial business case begin to fade as it becomes clear that the planned return on investment is diminishing. More time and resources are sucked into the initiative, further eroding its value. And the people and business areas that will live in the new world aren’t sufficiently involved with, or prepared for, what's coming.

This is the reality in many companies because they lack the right transformation tools and transformation management capabilities. Thousands of troubled transformation initiatives are swept under the carpets of companies which thrive on operational excellence but discover to their cost, that transformation excellence requires a very different set of capabilities. So why does this happen?  Why do companies that excel in their day-to-day operations struggle so much with transformation?

Let’s consider some of key reasons:

First there’s “Underestimating the Challenge”.

Some leaders don't fully grasp how much more difficult execution is compared to strategy formulation. They invest heavily in developing the strategy but allocate insufficient resources to its implementation.

Next is a Lack of Execution Capabilities.

Companies often lack the specific skills and tools needed for successful transformation. Project management, change management, and technology integration are all critical capabilities that may be underdeveloped.

Insufficient Orchestration.

Even when individual capabilities exist, there's often a lack of coordination between different aspects of the transformation. It's like having a group of very talented musicians who can't play in harmony.

Resistance to Change.

Transformation inherently involves significant change, which can be met with resistance at all levels of the organization. This resistance is often underestimated or poorly managed.

Poor Communication.

The vision and goals of the transformation are not effectively communicated throughout the organization, leading to misalignment and confusion.

Inadequate Involvement.

Key stakeholders, especially those who will be most affected by the changes, are not sufficiently involved in the transformation process.

And Short-Term Focus.

The pressure for quick results can lead to shortcuts and compromises that undermine the long-term success of the transformation.

The consequences of this gap between strategy and execution are severe and far-reaching: First there’s Financial Losses. Failed or poorly executed transformations can result in significant financial losses, both in terms of wasted resources and missed opportunities. Next there’s Loss of Competitive Advantage. While a company struggles with execution, competitors may be moving ahead, potentially rendering the original strategy obsolete. And of course – a decline in Morale.

Failed initiatives can lead to frustration and disengagement among employees, making future transformations even more challenging. There’s Reputation Damage. Stakeholders, including customers and investors, may lose confidence in the company's ability to innovate and adapt.
And Increased Risk. Poor execution can expose the company to various risks, including operational, financial, and strategic risks.

So, what can you do as a leader to bridge this execution gap between strategy and execution?

Here are 10 Critical Steps in Bridging Execution Gap:

1. You should Develop better Execution Capabilities. Become the architect of the capabilities you need both to define and execute strategy. Ensure you have the right transformation management capabilities on board.
2. Invest in Key Disciplines: Recognize that Project and Programme Management, Business Process Management, Technology Management, and Organizational Change Management, and other key activities all require specialist skills that are prerequisites for successful transformation.
3. Orchestrate Your Transformation: Like a conductor leading an orchestra, you need to ensure all these disciplines work together harmoniously. Each expert may be a master of their own instrument, but it's your job to make them play in unison.
4. Foster a Culture of Resilience: Build a culture that is adaptable and resilient to change. This involves creating flexible, agile practices that empower teams to respond swiftly to the changing dynamics of a transformation journey.
5. Engage the Right Talent: Scout for and nurture individuals whose skills and mindset align with the transformation objectives. Look for professionals who don't just execute tasks but also contribute to shaping the transformation narrative.
6. Prioritize Communication: Implement clear, consistent, and compelling communication strategies. This not only aligns your team but also keeps stakeholders engaged and informed throughout the transformation process.
7. Balance Short-Term and Long-Term Goals: While quick wins are important for momentum, never lose sight of the long-term objectives of your transformation.
8. Continuously Monitor and Adapt: Implement robust monitoring systems and be prepared to adjust your approach based on real-time feedback and results.
9. Lead by Example: Demonstrate your own commitment to the transformation through your actions and decisions. Your team will follow your lead.
10. Celebrate Successes: Recognize and celebrate milestones along the way to maintain motivation and momentum.

So, as we wrap up, while a great strategy is crucial, it's only the beginning of the transformation journey. The real challenge – and the key to success – lies in execution. As a leader, your role isn’t simply to craft visionary strategies, but you also need to build an organization capable of bringing those visions to life.

Remember, in the world of business transformation, “fail to prepare, prepare to fail” has never been more true. The preparation isn't just in crafting a visionary strategy but in equipping yourself and your organization with the robust capabilities to execute it. The journey from strategy to successful execution is one of learning, adapting, and leading. Of course it's challenging, but with the right approach, it's a challenge you can meet head-on.

Remember when I asked you at the start of the video to imagine your perfect transformation strategy getting rave reviews? Now you understand why even those dream scenarios can fall short during execution. Because it's not enough to craft a compelling strategy; execution requires specific capabilities, constant adaptability, and a resilient culture. By addressing the gaps we've discussed today, you can turn that vision into a sustainable reality, where success isn't just imagined – it's executed.

Thanks for sticking with me through today's video. If you're ready to dive deeper, you can grab a free copy of my book. You'll find a link in the description below. Or go to cxo.fm/book. And if you're serious about taking your transformation skills to the next level, join me inside Transformation Academy.  It's our private platform offering courses, certifications, and all the resources you need to become a successful transformation manager, leader, or consultant. You'll find a link in the description below.  Or go to cxo.fm/academy. Check out the links below, and I’ll see you in another video.