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Hr, Strategy

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Why Strategy
Execution
Unravels—and
What to Do About
It
Donald SullRebecca HomkesCharles Sull
FROM THE MARCH 2015 ISSUE
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Why Strategy Execution Unravels—and What to Do About It
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March 2015 Issue
EXPLORE THE ARCHIVE

Since Michael Porter’s seminal work in the 1980s we have had a clear and widely accepted definition of what strategy is—but we know a lot less about translating a strategy into results. Books and articles on strategy outnumber those on execution by an order of magnitude. And what little has been written on execution tends to focus on tactics or generalize from a single case. So what do we know about strategy execution?
We know that it matters. A recent survey of more than 400 global CEOs found that executional excellence was the number one challenge facing corporate leaders in Asia, Europe, and the United States, heading a list of some 80 issues, including innovation, geopolitical instability, and top-line growth. We also know that execution is difficult. Studies have found that two-thirds to three-quarters of large organizations struggle to implement their strategies.
Nine years ago one of us (Don) began a large-scale project to understand how complex organizations can execute their strategies more effectively.
The research includes more than 40 experiments in which we made changes in companies and measured the impact on execution, along with a survey administered to nearly 8,000 managers in more than 250 companies. The study is ongoing but has already produced valuable insights. The most important one is this: Several widely held beliefs about how to implement strategy are just plain wrong. In this article we debunk five of the most pernicious myths and replace them with a more accurate perspective that will help managers effectively

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