Did you know that 70% of all strategic initiatives fail?
Strategy is the art and science of deselecting alternative pathways towards a temporary competitive advantage and differentiated positioning. Because this is so crucial for the performance or even survival of the organization, we often put our best people in charge of these initiatives, but yet we do not reap the expected benefits.
From a behavioural economics stand point this is not surprising. The sheer complexity of the task is enough to ensure short cuts are made. The required change is enough to awaken status quo bias that prevents the organization from moving too far from the current situation. The past performance of the organization is enough to envoke overconfidence bias and take on unrealistic goals. The politics may be enough to enable group think and avoid the tough conversations.
How do we ensure that our strategy is ambitious, focused and coherent?
Whether you focus on growth, customer experience or disruption, there are a few critical steps to take, if you want a solid, implementable and fast strategy – typically taking 2-4 months.