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The survey of 501 executives found: 1) 55% believe their companies are not focused on executing strategies. 2) 42% said their companies lack alignment behind strategies and have too many conflicting priorities. 3) Executives' top concerns were strategies not being bold enough (46%) or coherent enough (39%). 4) Creating better alignment behind strategies was cited as contributing most to closing strategy-execution gaps.

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0% found this document useful (0 votes)
219 views11 pages

PWC Presentation

The survey of 501 executives found: 1) 55% believe their companies are not focused on executing strategies. 2) 42% said their companies lack alignment behind strategies and have too many conflicting priorities. 3) Executives' top concerns were strategies not being bold enough (46%) or coherent enough (39%). 4) Creating better alignment behind strategies was cited as contributing most to closing strategy-execution gaps.

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Xinyao Qian
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We take content rights seriously. If you suspect this is your content, claim it here.
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April 23 2014 Results document

Strategy-execution
survey
Key findings
Background and methodology

• Strategy& ran a survey in March 2014 to better understand


– how confident executives are about their company’s strategy and execution abilities
– what, if any, their major concerns are in these areas
– what one thing would contribute most to closing the strategy-execution gap if it got addressed
• We used a survey panel and collected results from 501 executives covering a range of
regions, industries, functions, seniority, and company sizes
• The survey was conducted via an online tool that asked participants to provide
answers to eight strategy-execution questions and indicate simple demographic
information

Strategy& April 23 2014 1


Key findings

• A majority of executives – 55% – believe that their companies aren’t focused on


executing their strategies
• The survey gives other indications of trouble with implementing strategy
– 42% of executives say their companies aren’t aligned behind their strategy, that some parts of
the organization don’t understand or resist it
– The same percentage (42%) are worried that their company’s strategy asks people to work on
too many, and often conflicting, priorities
• Many executives also report challenges in the strategies themselves
– 46% say they’re concerned their company’s strategy isn’t bold enough and that “the goals it sets
aren’t high enough for us to win”
– 39% expressed concern that their company’s strategy isn’t coherent – that it doesn’t “leverage
our most important capabilities, assets, or resources across the entire organization”
• Indeed, in exploring companies’ strategy-execution gaps, the survey found that nearly
every executive (96%) has concerns about at least one barrier to success, either on
the strategic or the executional side
• In terms of what drives a company’s success, respondents who felt comfortable
saying their company is “currently winning in the market” were most likely to say their
success is attributable to “great leadership” or “powerful and distinctive capabilities”
Strategy& April 23 2014 2
501 respondents took the survey from across regions and
management levels

Level of Respondent Revenue of Location of Respondent


Respondent’s Company

Number of Number of Number of


respondents respondents respondents
234
225

180
167 167 167 165

51 54 51
42

C-suite Senior Manager $500M $1B to $10B or Asia/ Europe Latin Middle North
Manager to less less than more Australia/ America East/ America
than $1B $10B S.Pacific Africa

Strategy& April 23 2014 3


Nearly every executive – 96% – indicated concerns about at
least one strategic or executional barrier; 42% were
significantly concerned
Which of the following concern you about your company’s strategy and
execution capabilities?....
– Analysis by respondents’ highest level of concern about strategic or executional issues
barriers –

Significantly concerned about


42% at least one strategic or
executional barrier

Somewhat concerned about at


least one strategic or executional
barrier, but not significantly
54% concerned about any

Not concerned about any of the


4% strategic and executional barriers
N=501; Sums may not total 100% due to rounding

Strategy& April 23 2014 4


When commenting on their strategy, executives are most
concerned about it not being bold and coherent enough

Thinking about your strategy how concerned are you Significantly concerned
about it being…. Somewhat concerned
Not concerned

4% 6% 5% 3% 9%
21%
29% 24%
41% 29%

70% 76%
67% 61%
54%

… not clear enough … not meaningfully … not bold enough; the … out of reach of what … not coherent; (does
about how we create differentiated from our goals it sets aren’t high we can achieve; it not ensure we leverage
unique value for our competitors’ strategies enough for us to win requires us to stretch too our most important
customers far from our strengths capabilities, assets, or
resources across the
N=501; Sums may not total 100% due to rounding entire organization)

Strategy& April 23 2014 5


On execution, executives’ main concerns are about not
focusing on execution, lacking alignment behind the
strategy, and conflicting priorities
Thinking about your company's ability to execute its Significantly concerned

strategy, how concerned are you about… Somewhat concerned


Not concerned

5% 6% 6% 4% 7%
12%
20% 20% 19%
36% 30%
49%

75% 76% 74%


58% 58%
45%

We have not Our strategy asks us We are not aligned We are not focused We don’t allocate Our culture is
translated our to work on too many, behind our strategy; on executing our the required holding us back
strategy into sometimes e.g. some parts of the strategy resources to
tangible actions conflicting, org. don’t understand implement our
priorities it or resist it strategy
N=501; Sums may not total 100% due to rounding

Strategy& April 23 2014 6


The one thing that, according to respondents, would
contribute most to closing the strategy-execution gap is
creating better alignment behind the strategy

What one thing would make the most difference to closing the strategy-
execution gap at your company, if it were resolved?

21%

14%
12%
9%
8% 8%
7% 7%
5%
4% 4%

Strategy Strategy Strategy Strategy out Strategy Have not Need to Not Not Don’t Culture is
not clear not not bold of reach of not translated work on too aligned focused on allocate holding us
differen- enough what we can coherent strategy many behind executing required back
tiated achieve into action conflicting strategy strategy resources
priorities
N=214; Sums may not total 100% due to rounding

Strategy& April 23 2014 7


Executives in winning companies most often attribute their
success to “great leadership” and “powerful and distinctive
capabilities”…

What would you most attribute your company’s success to?

27%
25%

20%
18%

9%

0%

Great leadership Powerful and Lucrative assets Favorable market Winning strategy Other
distinctive conditions
capabilities

N=476; only for those respondents who indicated their company is winning in the market; Sums may not total 100% due to rounding

Strategy& April 23 2014 8


… but executives whose companies succeed with capabilities
are less concerned than those whose companies do so with
great leadership
Which of the following concern you about your company’s strategy and
execution capabilities?....
– Analysis by respondents’ highest level of concern about strategic or executional issues barriers –

Executives who attribute their company’s Executives who attribute their company’s
success mostly to “great leadership” success mostly to “powerful and distinctive
(N=128) capabilities” (N=117)
Significantly concerned about at
least one strategic or executional
47% barrier 40%

Somewhat concerned about at


least one strategic or executional
barrier, but not significantly
concerned about any 55%
52%

Not concerned about any of the


2% strategic and executional barriers 5%
Sums may not total 100% due to rounding

Strategy& April 23 2014 9


Advertising Copyright

© 2014 PwC. All rights reserved.

Copyright and Definition

© 2014 PwC. All rights reserved.

PwC refers to the PwC network and/or one or more of its member firms, each of
which is a separate legal entity. Please see www.pwc.com/structure for further
details.

Disclaimer:

This content is general information purposes only, and should not be used as a
substitute for consultation with professional advisors.

Strategy& April 23 2014 10

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