Ricardo provides an inspiring interview to TaskQue about career, challenges and trends.
Despite the incredible advances taking place in the world, a growing number of organisations will disappear in the next decade. The reality is that markets now shift in the blink of an eye, yet the underlying factors that cause them to change are often years in the making.
According to the research, excellence in strategy implementation is way off balance in comparison to strategy design. The gap between them is growing exponentially. Moreover, the harsh truth is that strategy itself shows little value until it is successfully implemented. In a fast-moving business world, where a lot can happen in the blink of an eye, assessing and realigning quickly from strategy design to delivery is what it takes to succeed in the market.
Facebook live interview of Ricardo for The Economist during the Davos panel: The Business Case for Openness
When we think that we are wasting $1m every 20 seconds due to the flawed implementation of programmes and projects, it becomes clear that we need to do something to rectify this problem. The short answer is that our society cannot afford to waste this huge amount of resources every year. It is a massive destruction of value, not only in terms of loss of profit for the private sector, but it wastes resources from governments and the not-for-profit sector too.
While company strategies can look amazing on paper, they only become useful once they have been fully implemented. Too many organisations are struggling to bridge the gap between design and delivery.
What on earth does entropy have to do with strategy implementation? The short answer is: everything. The leadership’s entire job boils down to a never-ending fight against entropy. But I’m getting ahead of myself.
Implementing successful strategies is key to running a healthy business whether it’s a small local company or large multinational cooperation. But what happens when a company’s strategy seems well thought out and strategic, but ends up not hitting the mark in terms of its specific goals? What went wrong, and how can things be fixed?
Organizations invest tremendous amounts of time and resources in their strategic planning processes, yet many struggle when it comes to the actual implementation. According to recent research by Kotter International, 70% of new, large-scale strategic initiatives fail. These echo the findings in the report just released by The Economist Intelligence Unit.
It’s that shadow that fascinates me. Throughout my career, I have seen how even the most brilliant strategies can come to nothing because the connection between the definition and the delivery of strategy is incomplete and ineffectual. Markets are in constant flux, digital technology is accelerating the pace of, well, everything, consumer behavior is morphing before our eyes, and political and economic conditions can and do change overnight. In this environment of rapid change and uncertainty, organizations can survive only by continuously updating and refining their strategies — and then translating them into results.