Your strategy is a hypothesis. It’s your best estimate of the route to success… but it’s still an estimation.
Only 15% of all companies does the right thing
It’s crucial to take some time at the end of a cycle to go back and check your hypothesis, to compare your initial strategic assumptions with what you have learnt from the reality of the Strategy Execution cycle that is being completed. By doing this, you will put yourself in the forefront – research shows that only 15 percent of companies take this step.
Focus also on capabilities
But at the same time, make sure that you don’t just look at your strategy: study your Strategy Execution capability as well. All too often, we see companies jumping automatically to change their strategy because they did not reach their projected performance. But, upon examination, there is nothing wrong with their strategy. The problem is the execution. So don’t forget to challenge your implementation capabilities as well!
Verify your hypothesis
This ‘compare and learn’ step will help you verify your hypothesis (read ‘review your strategy’), update your strategy, and fine-tune your execution efforts and capabilities accordingly.
