WHY EXECUTION MAY BE WHERE STRATEGIES GO FOR “DEATH SENTENCE” WITH CULTURE BEING THE “HANGMAN”

Sun Tzu, an ancient Chinese military strategist would write in his book – The Art of War – that “If you know the enemy and know
yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will
also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle”.
For decades, survey after survey reveal that most strategy implementations fail. The majority of strategies fail in the implementation
phase. This is the strategy implementation problem: ‘the all too frequent failure to create change after seemingly viable plans have
been developed’. Because of its high failure rate, achieving successful strategy implementation remains a continuing challenge for
managers and executives with strategy implementation responsibilities around the globe. Despite its importance to every
organization, many still do not fully understand why strategies fail.
Part of the problem is that most people don’t really know what a strategy is and confuse it with goals, objectives, and the typical
platitudes. And even schools are complicit in their inability to convey this most central concept to students. You can’t win by saying
you want to provide outstanding service, or that you will be the number one player in the category. The real question is HOW you
are going to create a sustainable competitive advantage that competitors will have great difficulty replicating.
So what determines whether execution brings life or death to your strategy? It’s not what you think. It’s how you think. The mental
models that inform strategy are usually different from those that determine implementation. To close the strategy-execution gap,
leaders have to close several other, smaller gaps.
First, the thinking styles of the people who create strategy are often different from those of the people who implement it. In many
organizations strategy is usually developed by people who have a big-picture orientation, while execution is often done by those
with a detail orientation. Furthermore, strategy is usually done by people who are focused on ideas and connections, while
implementation is done by those who focus on process and action.
“Culture eats strategy for breakfast” is a famous quote allegedly attributed to the legendary Management Consultant and writer
Peter Drucker. In his statement, Drucker meant that no matter how well thought-out the strategy is, if you do not have or consider
the culture in your organization to support that strategy it will not come to fruition. An organization culture is about the habits
people have formed, how they make decisions, how they respond to challenges, pressure and discomfort, and what they believe is
good or bad for success based on what has been incentivized, rewarded, reinforced, and possibly even punished in their workplace.
Culture is the overall result when the majority of an organization workforce espouse the same set of beliefs even if they are not the
traits valued by the company. However, in many organizations, what is often but wrongly defined as culture is what we see on the
surface, office layouts, visible artifacts and mission statements etched on papers, what people wear etc.
While many studies show there is a direct correlation between a healthy, productive culture and a company’s bottom line, the
majority of companies spend little time thinking, let alone doing anything about, this topic – even when they are spending lots of
time thinking about their business strategy.
Because effective strategy must be carried through to tactical execution by all employees, a strategy that is not in congruence with
culture is destined for failure. This is not to say that it is impossible to align culture to strategy, but it is extraordinarily difficult to do
so. It is far easier to execute a strategy that conforms to the existing culture. However, strategy, in order to be effective, must spring
from a real market opportunity. If there is none, then as difficult as it is, a strategic culture must be built.
“Strategic culture” is not merely a catchy phrase to drop in a business meeting. It’s actually a very powerful concept that can help
leaders think through what the company values and what that means for the strategy. To find what would be a strategic culture for
the company, leaders have to identify the values of leaders, employees, and customers. A strategic corporate culture is where these
overlap.
The reason why culture easily chews up and spit outs strategy is that it is easier to reset strategy than it is to reset culture. Corporate
culture is a hard thing to get right. It’s a moving target that means something different to everyone. It grows and evolves over time
and is the result of action and reaction. It is the lingering effect of every interaction.
An organization culture should be assessed and refined to ensure a natural congruence with the strategy. If culture and strategy are
aligned, the strategy can be delivered smoothly. If they are not, then either the strategy should be reassessed or the culture should
be actively and painstakingly brought in line with the strategy. Failure to do this will reduce the strategy to a baseless assertion. That
is the eating for breakfast part. Without the cultural foundation for the strategy to build upon, the strategy will not get the support it
needs.