The average lifespan of an S&P500 company today is only 15 years. With this small amount of time, companies must maximize their opportunities. Yet despite the trillions of dollars and millions of man hours spent on strategic initiative projects (e.g. digital transformation, rebranding, new product launches), only 30% of strategic change initiatives succeed, according to the Harvard Business Review. The other 70% misinterpret their market opportunities, don’t recognize their core competencies, or simply don’t execute.
Organizations lose on average $149 million for every $1 billion spent on strategic initiatives” - Project Management Institute
At the crux of the problem is a disconnect between strategy and execution. Complex business environments have become the norm, requiring thoroughness during the strategic planning process and effective dissemination of information. Just to stay in the game, companies need to rally their troops to innovate more, but with too much information, lack of focus, confused stakeholders (researchers found that 95% of employees don't know what their company strategy is), the result is poor communication and slow organizational reflexes. With margins of error shrinking, that is a death knell.
It’s not the big eating the small in the marketplace right now, it is the fast eating the slow.” - Chris Laping, People Before Things
The magic ingredient to successfully execute on any strategy, implement a change initiative, or respond to a competitive threat is organizational agility.
We explore what business agility is, why it is critical to a strategic initiative's success, and the steps that any organization can take to develop business agility in our new eBook “Strategic Initiatives: The Agility Blueprint”.
Check it out and let us know what you think.