70% of all strategic initiatives fail

Managers are keenly aware of the poor track record among strategic initiatives, where McKinsey research shows a 70% failure rate. This in itself is a staggering number – it is amazing that managers dare start anything.

Often the blame for poor performance is put on execution – maybe because it is more acceptable to have an organization that has a will of their own than poor strategy thinking skills in the top management or consulting team. But the fact is that most of these problems stem not from execution but from a poor strategy.

What often gets missed in this connection is the strong correlation with decision biases – and thus it may not be neither the thinking of top management or the will of the organization that is the problem. It may just be our human nature as most of our 35,000 decisions per day are left to an automatic system built for surviving millions of years ago.

Our automatic system is mostly right also. So what we need is to know, when and how we need to circumvent it. This is where Behavioural Strategy Group comes in.

 

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