The Engine of Execution: Why Measures Drive Strategy Implementation

Organisations frequently invest significant time, resources, and expertise in crafting strategies designed to achieve ambitious goals. Yet, despite the effort put into design, strategy failure rates remain persistently high, cited by various studies at between 60% and 90%. A key challenge is the significant gap between strategy design and delivery. Strategy execution, the process of turning plans into workable action, is often the Achilles' heel of even the most brilliant strategic plan. While many factors contribute to this disconnect, a crucial element repeatedly highlighted in the research is the vital role of measures in driving successful strategy implementation.

Strategy, on its own, is often described as a framework guiding direction, or defining where an organisation wants to get to and how. However, a strategy has little value until it is implemented. The challenge lies in translating this high-level intent into concrete, day-to-day activities that everyone understands and contributes to. This is where effective measurement becomes indispensable.

Research suggests that strategy implementation relies fundamentally on being able to track and understand progress towards goals. If you don't measure progress toward an objective, you simply cannot manage and improve it. Measurement is not just an administrative task; it is an active driver of execution – making the long term relevant to the short term. Or, who do I do by job differently today to help achieve a three year objective?

Here's why measures are essential for driving strategy implementation:

1. Translating Strategy into Actionable Terms: Measures are a key component of translating high-level strategy into operational terms. Frameworks like the Balanced Scorecard use a balanced set of performance metrics and targets for each strategic objective. These measures help to clarify objectives and make them tangible, linking strategic goals to long-term targets and annual budgets. They provide a quantitative way to assess execution.

   
   

2. Providing Direction and Clarity: Measures help employees understand how their daily tasks and decisions contribute to achieving the overall strategy. They enable people to understand how their actions fit with targets. Critically, they empower employees to make choices about how they do their work, guiding them to choose the approach that best aligns with the strategy. Without clear metrics linked to strategy, employees may not know how their jobs need to change or which actions align with the desired future.

   
   

3. Enabling Monitoring and Learning: Successful implementation relies on progress towards long-term goals being visible in the short term. Measures provide the data needed for continual monitoring of performance against strategic priorities. This regular monitoring is essential for managing the strategy and identifying any impediments. It allows the organisation to track performance, assess if changes are needed, and provide regular feedback. Inadequate monitoring is cited as a reason for strategy failure.

   
   

4. Driving Initiatives and Results: Measures are directly linked to strategic initiatives. Research suggests that measures drive initiatives, and initiatives, in turn, drive results. A dedicated resource, for instance, monitors strategic initiatives to ensure they are improving such measures. This shows that measures provide the feedback loop necessary to manage and steer the activities intended to execute the strategy.

   
   

5. Facilitating Accountability: Assigning accountability is a key element of translating strategy into operational terms. Measures provide the basis for holding individuals and teams accountable for their contribution to strategic objectives. Clear accountability and defined decision rights are fundamental traits of organisational effectiveness that support execution.

   
   

6. Making Strategy "Business as Usual": What gets measured gets done. By integrating strategic measures into regular reporting and management processes, strategy implementation stops being an "add-on" and becomes embedded in the daily work of the organisation. It becomes "the way we do things around here".
   

In practice, organisations that are better at implementation are more likely to agree that those who develop and deliver strategy collaborate effectively. Tools like the Balanced Scorecard, managed by a dedicated resource reporting directly to the CEO, integrates measurement with planning, budgeting, initiative management, and communication to create a system for strategy execution. This system relies heavily on the data and insights provided by strategic measures to inform management discussions and drive action.

In conclusion, while strategy formulation provides the roadmap, measures provide the engine, the compass, and the feedback system for the journey. They are the critical link that translates strategic intent into daily reality. Without clear, relevant measures, strategy remains an abstract document, disconnected from the operational activities that ultimately determine its success or failure. By prioritising and effectively utilising measures, organisations can significantly increase their chances of bridging the gap between strategic design and impactful delivery.