In a world-leading Mombasa-based tech startup, the CEO recently rolled out what he called a "new strategy" to propel the company to the forefront of the East African market.
His announcement was grand, filled with buzzwords like "market leadership" and "innovation dominance," but employees left the meeting more confused than inspired.
The strategy sounded more like a set of lofty goals rather than a clear direction, sort of like a politician.
The CEO's declaration, "We aim to be the number one in our sector," failed to tell his team what specific steps they needed to take.
Without a defined path, employees struggled to align their daily tasks with the company's supposed strategy. The eventual result? Months passed, but the startup remained stagnant, with no significant shifts in market position or internal processes.
In contrast, a traditional manufacturing firm in Nairobi faced a similar challenge but approached it differently.
The firm’s leadership, led by an experienced chief operating officer (COO), recognised that for any strategy to be effective, it needed to be rooted in clear choices.
The COO articulated a strategy focused on enhancing operational efficiency through automation, reducing waste by 20 percent, and expanding their product line to target new, increasingly environmentally conscious generation-z consumers.
Each department knew exactly what was expected, how to measure progress, and the reasons behind the chosen direction.
Utilising clear directives and an understanding of why those directives mattered, employees across the board felt empowered to contribute to the strategy’s success.
Within a year, the firm saw substantial growth in both market share and internal efficiency.
Freek Vermeulen’s enlightening research on strategic failures sheds light on why the tech startup’s approach faltered.
The study argues that many so-called strategies are actually not strategies at all, but rather a set of broad goals lacking actionable steps.
It explains that a real strategy involves making clear choices that define what the company will do and, just as importantly, what it will not do.
Many strategies fail because they do not represent this kind of decisive direction. Instead, they often come across as a wish list of vague but exciting non-specific outcomes, which leaves employees directionless and disengaged.
The research insights stress the importance of not only making these choices but also communicating the logic behind them.
It draws attention to companies like the traditional manufacturing facility above, where the success of their strategy hinged not just on the choices made but on the clarity with which those choices were communicated.
Employees were not only aware of the strategic shift towards catering to the strategy, but they also understood the rationale behind it.
This understanding fostered a deep commitment to the strategy and ensured that it was implemented effectively. The research underscores the need for strategies to be both v, allowing employees to engage creatively within the set boundaries.
Executives looking to implement a successful strategy can learn from the findings. They must start by clearly defining the strategy, which means making tough decisions about what the company will focus on and what it will deliberately avoid.
Do not cascade the burden down to the staff. Communication plays a critical role in this process.
Leaders should ensure that all levels of the organisation not only know the strategy but also understand why those particular choices were made.
Encouraging feedback and bottom-up initiatives that align with the strategy can further enhance its effectiveness. When employees feel included in the strategy’s execution and understand its underlying logic, they are more likely to engage fully and drive the strategy forward.
Entities incorporating the above approach involves revisiting how strategies are crafted and communicated. Companies should move away from abstract goal-setting and instead focus on formulating clear, actionable strategies.
It remains also vital to foster an environment where change is the default.
Regularly questioning the status quo and encouraging teams to suggest improvements that align with the strategic direction can keep the organisation agile and adaptable.
Providing platforms for cross-departmental collaboration can also ensure that strategies are implemented cohesively across the entity, preventing silos and ensuring that everyone is working towards the same goals.
In summary, many strategies fail not because they are flawed in intent, but because they lack clarity and coherence in execution.
As the research highlights, a strategy must be more than a set of aspirations, it must be a roadmap of clear choices that guide the firm towards its goals.
By ensuring that strategies are well-defined, well-communicated, and open to bottom-up innovation, leaders can close the gap between strategy and execution, driving their organisations to achieve tangible, meaningful outcomes.
Have a management or leadership issue, question, or challenge? Reach out to Dr. Scott through @ScottProfessor on X or on email [email protected]
