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14 striking strategy execution figures

On average, companies lose 40-to-60 percent of their strategic potential during execution. Imagine the amount of money you could save by closing that gap.


But in order to take the next step – to close that gap – organisations need a more detailed view of exactly where they are losing performance. Knowing that your organisation loses between 40 and 60 percent of its strategic potential on the execution highway between the city ‘strategy’ and the city ‘performance’, is an interesting fact but doesn’t really help solve your problem.


Here are 14 insights, researched by the performance factory:

  • Almost all – 94 percent – have indicators that relate not only to financials,
  • but also to customers, processes or people.
  • Around 1 in 3 – 30 percent – receive no information on how to execute the strategy.
  • Only 61 percent is convinced that the strategic initiatives are staffed with the right people.
  • As little as 27 percent believe that the strategic initiatives are being managed correctly.
  • 27 percent doesn’t receive any individual feedback.
  • As many as 17 percent lack leadership objectives.
  • 17 percent indicate that performance isn’t monitored.
  • 38 percent indicate that poor performers don’t face any consequences.
  • More than one third – 37 percent – have never had the opportunity to participate in a 360° skills assessment exercise.
  • 18 percent is unable to explain how to set individual objectives.
  • 27 percent receives no training on essential management skills.
  • 36 percent do not question appraisals objectively.
  • Of all managers, 24 percent do not receive any useful strategy information from other departments.