Companies rarely struggle to define strategy; they struggle to execute it. In most organisations, around 90% of strategies fail, making effective execution one of the greatest differentiators between successful organisations.
This was the key takeaway message by Fernando Baz Ribo, the managing partner and founder of Strat.exe Consulting and adjunct faculty at GIBS, during a conversation on strategy with Werner Kapp, CEO of Altron Group.
“A great strategy means little without good execution. It may look impressive, but it delivers very little value. The opposite isn’t any better and there is no point executing the wrong strategy brilliantly,” said Baz.
Organisations need a robust strategy definition process and effective strategy execution framework that ensures the intended results are achieved. He explained that at GIBS and at Strat.exe, they use the strategy execution framework based on four key steps. The first is strategy definition as the key starting point.
The foundation of execution lies in the next three steps, beginning with strategy translation, arguably the cornerstone of the entire framework. Strategy translation is about taking the strategy you’ve developed and converting it into practical frameworks designed for implementation.
Once the strategy has been translated into a one-page strategy map, a balanced scorecard or strategic scorecard, and a prioritised portfolio of initiatives, it becomes much easier to implement.
The third step is strategy cascading and communication. This ensures everyone understands the strategy, knows their role in delivering it and works towards the same objectives. Effective communication and alignment are essential if execution is to succeed.
The fourth step is strategy management, which makes execution part of the organisations’ day-to-day operations. This includes monitoring progress, tracking performance and, importantly, testing the strategy itself.
“Leadership and culture underpin all four steps of the framework. Leadership drives execution, while culture enables it and together, they keep strategy on track.”
Why execution matters more than the plan
On Altron’s transformation journey, Kapp reiterated that strategy is only as good as its execution. While defining a clear strategy is essential, delivering meaningful results depends on translating it into action, aligning the organisation behind it and embedding execution into everyday operations.
Reflecting on his own journey as CEO, Kapp said he deliberately resisted the pressure to announce a new strategy immediately. Instead, he spent his first six months listening to employees, understanding the business and testing his assumptions before setting a clear direction.
That process highlighted six priorities, which include refining the strategy, reaffirming the company’s purpose, investing in core capabilities, strengthening leadership, improving underperforming businesses, and simplifying the operating model. The strategy was then broken down into clear short-term actions and communicated regularly through town halls and leadership updates.
