As digital transformation investments skyrocket, companies risk wasting millions annually due to failed strategy implementation; New research commissioned by Planview finds
Planview, a global leader in Portfolio and Value Stream Management, today announced the findings of a global study, “Bridging the gap: turning strategy into reality,” conducted by Economist Impact, the research arm of The Economist, and commissioned by Planview. The study uncovers common disconnects in strategy implementation leading to failures in critical digital initiatives. The findings show a stark reality: if businesses do not accelerate efforts to close the gap between strategy and action, the consequences are significant: wasted work, sunk costs, failed digital transformations, and the threat of becoming obsolete.
“With economic uncertainties, market disruptions, the rapid advancement of technologies like AI, and the growing digitalization imperative impacting every industry, the pace of change and complexity of decision-making is growing exponentially. Organizations across the globe are experiencing the realities of ‘adapt, evolve, or die.’ Yet only 15% of executives are confident in their company’s ability to adapt to change,” said Razat Gaurav, CEO at Planview. “Companies must be able to prioritize their initiatives in a capital and capacity-constrained environment, quickly analyze and adapt their project and product initiatives, making critical decisions that drive important outcomes. The key is connecting company strategy and how work is executed across the business.”
Alarmed by the inefficiency and waste in digitalization, Economist Impact undertook a global survey of 600 executives across seven countries and six industries. Among the findings revealed in the report, only 14% of executives expressed confidence in their company’s decision-making governance. Other key findings include:
- 84% of executives need to improve data-driven decision-making.
- 1/3 report challenges related to process, metrics, and data as critical hindrances in evaluating the progress of initiatives tied to business strategy.
- Most respondents think their organization needs to improve accountability in strategy implementation (86%) and goal setting and performance-monitoring systems (84%).
- Critically, only 20% of executives are confident in the resources allocated for implementation.
The Economist Impact research outlines an interconnected and interdependent framework for driving change to address these disconnects. Serving as a blueprint for bridging the strategy-implementation gap, the report is focused on five recommendations —alignment, accountability, resourcing, agility, and culture.
“When there is total clarity at the top around strategy, it becomes possible to ensure that it cascades effectively throughout the organization, up, down, and sideways,” said Rhonda Hiatt, corporate strategy consultant. “And that allows executives to ensure that everyone is marching in the same direction.”
Get the report to read the recommendations in full. Download here.
Citations
1 Planview 2023 Project to Product State of the Industry Report
2 AI has taken the board room by storm. Here’s what you must know.
3 Bridging the gap: turning strategy into reality. The survey, developed by Economist Impact and commissioned by Planview, was fielded across seven countries (Australia, France, Germany, New Zealand, Singapore, United States and the United Kingdom) and six industries (business & professional services, financial services, healthcare & life sciences, IT/technology, manufacturing, retail & FMCG). Most surveyed companies have annual revenues above US $1 billion.
Research Methodology
These findings derive from desk research and a global survey conducted by Economist Impact in April and May 2023 of 600 executives across seven countries (Australia, France, Germany, New Zealand, Singapore, United States and the United Kingdom) and six industries (business & professional services, financial services, healthcare & life sciences, IT/technology, manufacturing, retail & FMCG). Findings were supplemented by insights derived from a series of expert interviews. To learn more about the research methodology and detailed results, go here.
More about Economist Impact: it combines the rigor of a think-tank with the creativity of a media brand to engage an influential global audience. Economist Impact partners with corporations, foundations, NGOs and governments across big themes including sustainability, health, and the changing shape of globalization to catalyze change and enable progress.
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