The Four Reasons Strategies Fail

Apr 15, 2025

Rich Price

Rich Price

The Four Reasons Strategies Fail

And how to overcome them.

Strategy is essential for organizational success—yet execution remains the Achilles' heel for most companies. Studies show that 60–90% of strategic plans fail to be executed successfully. Another survey revealed that only 2% of leaders are confident they’ll achieve 80–100% of their strategic objectives. These numbers don’t reflect a lack of ambition—they reveal a gap between vision and execution.

After working with dozens of fast-growing organizations, we’ve found that most failures stem from four recurring breakdowns. Here’s what they are—and how to fix them.

1. Lack of Clarity

When team members are uncertain about the organization's strategy or their role within it, execution suffers.​

"Without strategy, execution is aimless. Without execution, strategy is useless."Morris Chang

A study found that 50% of middle managers couldn't name any of their company's top five strategic priorities, and less than 5% of employees understood their organization's strategy. ​

Solution: Ensure that strategic goals are clearly communicated and understood at all levels of the organization.​ Clear "commander's intent" enables leaders to empower autonomy to the edges of the organization (closer to where decisions should be made).

2. Lack of Focus

Without prioritization, teams may expend energy on tasks that don't align with strategic objectives.​ I recently spoke to a CEO who was convinced their product team had a tendency to focus on problems that interested them, but not necessarily the ones the business needed them to solve.

“Things which matter most must never be at the mercy of things which matter least.” – Johann Wolfgang von Goethe​

Dispersed efforts can lead to inefficiencies and diluted outcomes.​

Solution: Establish clear priorities and ensure that team efforts are aligned with strategic goals.​

3. Lack of Visibility

Inadequate insight into progress can hinder timely decision-making and course corrections.​

“What gets measured gets managed.” – Peter Drucker​

Research indicates that only 30% of organizations feel confident in their ability to monitor more than 85% of their operations. ​

Solution: Implement systems that provide real-time visibility into key performance indicators and project statuses.​

4. Underutilized Talent

Failing to leverage the full potential of employees can result in missed opportunities.​

“There is no heavier burden than an unfulfilled potential.” Charles Schulz

A study by Harvard Business School identified 27 million "hidden workers" in the U.S. who are eager to contribute but are often overlooked. ​

Finding talent from within is also often more cost-effective. A Wharton study revealed that external hires often earn 18% more than internal promotions but perform worse for the first two years and are 61% more likely to be terminated.

Solution: Recognize and utilize the diverse skills and experiences of all employees to drive innovation and performance.​

That’s why we built Alignd—to address these four fundamental keys to strategic success: clarity, focus, visibility, and talent utilization. Despite the abundance of enterprise tools on the market, we consistently saw a gap: most tools help you plan or track, but few help you execute strategy in a way that is simple, transparent, and connected to how people actually work. Alignd was designed to close that gap—by making strategy actionable at every level of the organization and ensuring that teams stay focused on what matters most, together.