The complexity of the surrounding environment and the need for a holistic approach to management has pushed towards the adoption of more structured and comprehensive management systems. Research has revealed that organizations that engage in strategic management generally out-perform those that do not.
But research also shows that:
- Only 5% of the workforce understands their company’s strategy.
- Only 25% of managers have incentives linked to strategy.
- Time, energy, and money are not allocated to those things that are critical to the organization. For example, budgets are not linked to strategy, resulting in wasted resources.
About 60% of organizations do not link budgets to strategy.
- Management spends too little time on strategy and too much time on short-term tactical decision.
- About 86% of executive teams spend less than one hour per month discussing strategy.
Our affiliate Dr. Paul Ritter stated the following, management assumes that employees:
- Are well informed.
- Will stay well informed.
- Are capable.
- Are co-operative.
- Are constantly available.
- Have good intentions.
- Discusses in a constructive, open way.
- Refrain from interests other than the good of the project’s objective.
- Have unlimited capacities.
However, reality is that undesired People’s behavior and attitude could form a clear obstacle to strategy execution. Ignoring such resistance may escalate it to the level that could affect performance and initiatives’ results. During implementation the following comments are commonly heard: “We just hold our breath until they, senior managers, get over it and things get back to normal”. Or “How is that supposed to fit with the six other things we are supposed to be doing?”.