Disease

Likely Symptoms

Preliminary Diagnosis

Under-lying problem

Corporate lethargy

Soon after execution the strategy grinds to a halt. The management team get frustrated “It’s not happening”. The staff are frustrated “It is words, without action”.

Strategic plans full of analysis and what will be achieved. Far less on what new capabilities have to be developed to execute the strategy.

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Corporate Schizophrenia

The management team seem to agree, but give out contradictory signals confusing the organisation. Words and actions do not match.

They don't all agree with the details but, the issues haven’t being resolved. Of course, disagreements occur but, they need to be discussed.

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Systemic failure

Despite the new strategy, lots of communication, action and support, “As is” continues. Things appear on course, but a year later the strategy has not been executed.

75% of middle managers do not have their incentives linked to the strategy. 60% of organisations fail to tie their budgets to the strategy. It is strategy without support.

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Measure mania (Sometimes called Aimlessness)

Measures should motivate, yet the measures are not changing what people do. May also have “I can’t see the wood for the trees”

There are too many measures, so people are confused. Which are really important? In the end you can’t satisfy all of them so none get done.

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Apparent stupidity

“They don’t get it”. “I wish I knew what was going on”. Those who need to execute the strategy don't understand it.

As few as 5% of the people in an organisation understand the strategy. As few as 30% may actually have seen it. Scary numbers!

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Uncoordinated
actions

From a customer’s perspective, the various parts of the organisation operate in quite different ways. "We do our bit - it is the other lot".

Silo functions and fiefdoms. A lack of focus on the experience and needs of the customer. Little sense of common responsibility and objectives.

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Balance problems

Management by financial measures. By the time the financial systems provide the results, it is too late. Profits warnings are looming.

Too little attention paid to the dimensions of the business that lead to financial performance. Too little attention paid to the drivers of performance.

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Learning disability

Meetings focus on understanding and analysing results and measures and reviewing performance. The main question that gets asked is, “Why are they not delivering?”.

85% of Senior managers spend less that 1-hour a month discussing strategy. Too operational. No one asks “Are we communicating and executing the right strategy, correctly?”

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Flabby projects

Loads of projects around the organisation. Projects completed but make no difference to the organisation. Cost cutting cuts back the benefits, not the costs, of projects.

In most organisations, between 25 and 40% (by value) of the projects do NOT contribute to the strategy. They need killing. Other projects will not deliver what the strategy demands. They need re-aligning.

Solving this & an example