DESCRIPTION
Most organizations only realize 60% of their strategies’ potential value due to issues in strategy development and/or execution. This gap between the strategic plan and actual performance results is known as the Strategy-to-Performance Gap.
This presentation explains the Strategy-to-Performance Gap, its root causes, as well as identifies 7 rules to follow to close this gap. These rules allow an organization to objectively assess any performance shortfall and determine whether it originates from the strategy, the plan, the execution, or its employees’ capabilities.
The 7 rules are:
1. Keep it simple—make it concrete.
2. Debate assumptions, not forecasts.
3. Use a rigorous framework—speak a common language.
4. Discuss resource allocation early.
5. Clearly identify priorities.
6. Continuously monitor performance.
7. Reward and develop execution capabilities.
By closing the Strategy-to-Performance Gap, organizations also eventually develop a culture of overperformance.
This PPT delves into the root causes of the Strategy-to-Performance Gap, identifying five primary reasons why organizations fail to achieve their strategic potential. These include inadequate resources, poorly communicated strategies, and unclear accountabilities. The analysis is backed by data from a Harvard Business Review study, providing a solid foundation for understanding the magnitude of performance loss.
The presentation also highlights the "venetian blinds" pattern, a common issue where annual performance projections consistently fall short of actual results. This pattern underscores the institutional practice of setting unrealistic goals, which can erode organizational culture and morale. By addressing these systemic issues, companies can better align their strategic objectives with achievable performance targets.
Lastly, the document outlines actionable steps to close the Strategy-to-Performance Gap. These steps include rigorous performance tracking, debating assumptions rather than forecasts, and fostering a culture of accountability. By implementing these strategies, organizations can significantly enhance their ability to execute plans effectively, thereby unlocking greater value and achieving sustained overperformance.
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Source: Best Practices in Strategy Development, Corporate Culture, Strategic Planning, Strategy Execution, Strategy-to-Performance Gap PowerPoint Slides: Closing the Strategy-to-Performance Gap PowerPoint (PPTX) Presentation, PPT Lab
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