How Hierarchy Can Hurt Strategy Execution

In March, we surveyed members of the HBR Advisory Council (a representative group of readers we periodically turn to for insights) about strategy and execution in their organizations. We asked how well they think strategy is developed, which obstacles prevent implementation, how the downturn has affected performance, and so on. A total of 1,075 respondents weighed in. Four data points stand out: First, readers think the biggest execution challenge is making strategy meaningful to frontline workers. Second, a lot of people can’t even tell you what their firm’s strategy is. Third, strategy still comes mainly from the top. And fourth, people involved in its development are the most likely to buy in. Those findings suggest that leaders should consider making strategy formulation more bottom-up and should communicate more clearly—throughout the ranks—about what the company is trying to achieve.