The top management has developed and announced the new corporate strategy. But soon it becomes clear: implementation is stalling, and the strategy is in danger of failing. A more than frequent situation in companies across all industries and sizes. What is the reason? Five common pitfalls cause strategies to fail in realization:
Pitfall 1: Too Many Projects at Once
The project portfolio is overloaded with a multitude of initiatives running in parallel. Due to constant interruptions and multitasking, projects do not progress purposefully. Employees are overloaded, and efficiency decreases.
Pitfall 2: Lack of Prioritization
There is a lack of clear criteria for evaluating and prioritizing projects. Initiatives are started regardless of their strategic value and available resources. Other important projects slow down.
Pitfall 3: Unrealistic Resource Planning
Projects often start without the required personnel and budget resources being available. Bottlenecks lead to delays and quality issues. Efficient project execution is impossible.
Pitfall 4: Too Much Operational Detail Planning
Instead of high-level milestones, overly detailed project plans are created and micromanaged. This leads to enormous effort with no added value. Creativity and self-organization of teams are stifled.
Pitfall 5: Lack of Visibility and Transparency
The overview of project progress across the entire portfolio is lost. Neither management nor project teams have a common understanding of the current situation. Critical deviations are detected too late.
Here’s how to avoid these pitfalls:
- Concentrate on just a few things.
- Manage projects and portfolios using simple key performance indicators. Right from the start.
- Start quickly, improve continuously.
- Visualize projects and portfolio for common understanding.
- Practice trust and commitment.
- Use modern IT technologies such as cloud and AI.
With these principles, you will master the greatest challenge of successful strategy management: permanently closing the gap between planning and execution.
Learn more background and recommendations in the Execution Excellence Manifesto!