The majority of managers believe that their companies lack a winning strategy. They struggle to set a clear and differentiating strategy, struggle to ensure that their day-to-day activities are aligned to executing their strategy, and they struggle to allocate resources in a way that supports the strategy – according to a Booz & Co survey of more than 1,800 managers.
THE PROBLEM WITH MOST COMPANIES:
52% of managers don’t feel their company’s strategy will lead to success.
49% say their company has no list of strategic priorities at all.
67% admit that their company’s capabilities don’t fully support their strategy.
43% say their strategy does not differentiate the company in the market.
53% say that the way they create value is not well understood by employees or customers.
64% say that their biggest frustration is “having too many conflicting priorities.”
Most worrying, only 21% are fully confident that they have a winning strategy.
DO YOU HAVE A PROBLEM?
According to the survey, companies who have a small handful of (no more than 3) strategic priorities have higher profits and revenue growth – compared to those firms having a longer list of strategic priorities (or worse, no clear strategic priorities at all).
I find it tragic that only 1 in 5 managers believe their company has a winning strategy. According to the authors, companies with more “coherence” – where strategy, capabilities and product/service offerings are in sync – perform better financially.
There is clearly a problem with the way most companies set strategy. Most companies struggle to choose their key strategic projects. Even when they do, they lack the ability to focus on the execution of these priorities and actually get these things done.
The root of the problem is that too many companies grab hastily for what seems like the next answer to growth. They blindly follow the latest trend or whatever they see their competitors doing. They don’t use a disciplined strategic planning methodology to decide the critical few strategic moves that will lead to future success. They end up stretched thin, trying to do a little bit of everything and doing nothing well.
WHAT DO WINNING COMPANIES DO?
Winning companies carefully choose their path to future success: They choose what they will become excellent at – rather than just trying to sell what they currently do. They get very clear on what differentiates them from competitors, and how they will create value for their customers in the future.
The best first step is to create a 1-Page Strategic Plan. Start yours right now!