Less than 50% of enterprises successfully reach the strategic objectives set When their IT leaders, according to Gartner research. Gartner details a gap between vision and execution, one that has real consequences for business performance.
Enterprises that consistently fail to execute their strategies risk lagging behind in competitive markets, losing profitability, and wasting resources. In contrast, companies that successfully turn strategy into action meet their goals and contribute to the overall success of the enterprise.
CIOs can improve their strategy execution When focusing on three main pillars: planning, measuring, and staying on track. These areas form the foundation of any successful strategy, guiding organizations from concept to results.
Success starts with smart planning
Even the best execution skills are insufficient without solid planning. A clear, well-thought-out strategy lays the groundwork for success When defining outcomes, setting a clear path to achieve those outcomes, and determining the role of technology in supporting these efforts.
A successful strategy has three key elements:
- Defines what success looks like: Clearly outlining the desired end state helps everyone in the organization stay focused.
- Indicates steps to achieve it: Providing a roadmap helps teams understand how to get from point A to point B.
- Specifies how information and technology will contribute: Identifying the specific tools, platforms, and data sources that will drive progress ensures resources are aligned with business objectives.
Many businesses fall short in execution because their strategic plans are vague or incomplete. CIOs must invest time and effort in crafting a detailed and clear plan to set their teams up for success.
Understanding business DNA to shape your IT strategy
Understanding the broader business context is crucial for creating a strategy that aligns with overall company goals. CIOs need to consider the organization’s objectives, market positioning, and IT principles when formulating their strategic approach.
When doing so, they ensure that technology investments and initiatives contribute directly to the company’s long-term vision.
Setting a bold course for your IT strategy
A clear direction provides a roadmap for success. CIOs must set specific, measurable goals that relate to the company’s broader objectives. It involves identifying what needs to be achieved and outlining the steps needed to get there.
Without a clear direction, enterprises risk wandering aimlessly, leading to wasted resources and missed opportunities.
Crafting actionable steps to bring your vision to life
Concrete, actionable steps are the glue that binds strategy to execution. CIOs should break down high-level goals into detailed tasks and milestones, accounting for potential challenges like underinvestment in key areas. Addressing these gaps early in the planning process can prevent bottlenecks and delays in execution.
Planning for generative success
Despite the growing interest in generative AI, many enterprises lack a structured adoption plan. According to McKinsey’s June 2024 research, most businesses have yet to develop a comprehensive AI roadmap.
A lack of foresight creates confusion and risks around implementation, leading to failed projects or missed opportunities. CIOs should prioritize developing a clear, long-term AI strategy to avoid these pitfalls.
A March 2024 Asana survey found that 25% of IT leaders regretted investing in AI too quickly, showing the importance of careful planning.
Rushing into AI adoption without a solid framework can lead to poorly integrated solutions that don’t meet business needs or provide meaningful value. CIOs must take a measured, thoughtful approach to AI investments, making sure they are aligned with broader strategic goals.
How to measure what matters
Identifying the right metrics is key for CIOs to monitor progress and spot potential issues before they escalate. When asking five key questions, leaders can determine which metrics are most relevant:
- What is being measured?
- Where is the organization today?
- What is the target goal?
- What is the desired business outcome?
- What is the balance point?
These questions help CIOs narrow down meaningful metrics that track progress and inform decision-making throughout the execution process.
Predictive vs. lagging, and why you need both
Metrics fall into two main categories: predictive and lagging. Predictive metrics offer an early indication of whether an organization is on the right path, while lagging metrics reveal results after execution.
Predictive metrics could track the percentage of customers likely to engage with personalized recommendations, while lagging metrics measure how many customers actually clicked on those offers.
Both types of metrics are key for a well-rounded strategy. Predictive metrics provide early warnings that allow for course corrections, while lagging metrics show the final impact of strategic decisions.
Keeping strategy on course
Given the pace of change in the modern business environment, CIOs must regularly review and adjust their strategies to stay aligned with market trends and internal priorities. Changes in technology, customer expectations, and economic conditions can make once-effective strategies obsolete.
Generative AI disrupted many companies’ priorities, forcing businesses to pivot and test the technology.
CIOs now face pressure to demonstrate tangible benefits from their AI pilots, or risk losing momentum. Regular reviews allow companies to reassess these projects and make informed decisions about whether to continue, pivot, or halt them.
How often should you really be reviewing your strategy?
According to Gartner research, more than 75% of business leaders review their strategies at least twice a year, and about 37% adjust their strategies after these reviews. This cadence strikes a balance between maintaining strategic focus and remaining flexible enough to adapt to changes.
It’s essential for CIOs to commit to regular strategy reviews, even if they decide no changes are necessary.
The twin pillars of strategic execution
Execution falters when accountability is not clearly established across the organization. A successful strategy cascades through all levels of the enterprise, requiring shared responsibility from both executives and managers.
Shared commitment makes sure that the entire team is aligned and focused on the same objectives.
How to build the right capabilities to execute your strategy successfully
Having the right capabilities in place is key for strategic execution. Leaders must ensure that teams are equipped with the necessary skills, tools, and resources to carry out the plan effectively.
Without foundational elements, even the best-laid strategies are likely to falter. Additionally, a strong commitment from top leadership can make or break an initiative’s success. CIOs must secure executive sponsorship to guarantee that the organization prioritizes and follows through on strategic goals.
