According to the consultants at Marakon, companies typically realize only about 60% of their strategies’ potential value because of defects and breakdowns in planning and execution. Yet, by following seven simple rules, you can get a lot more than that.
Marakon found that the processes companies use to develop plans and monitor performance make it difficult to discern whether the strategy-to-performance gap stems from poor planning, poor execution, both, or neither.
Here’s what they found:
- Companies rarely track performance against long-term plans.
- Multi-year results rarely meet projections.
- A lot of value is lost in translation.
- Performance bottlenecks are frequently invisible to top management.
- The strategy-to-performance gap fosters a culture of underperformance.
To help close the strategy-to-execution gap, Marakon recommends the following seven steps:
- Keep it simple, make it concrete.
- Debate assumptions, not forecasts.
- Use a rigorous framework, speak a common language.
- Discuss resource deployments early.
- Clearly identify priorities.
- Continuously monitor performance.
- Reward and develop execution capabilities.