With too many conflicting priorities, many companies worldwide seem to be struggling to evolve successful business strategies, according to a recent survey. According to a survey of global management consultant firm Booz & Company, 64 per cent of the executive surveyed said that their companies have too many conflicting priorities.
Besides, majority of executives said that their companies lack coherence and struggle with establishing a strategy that is clear and that differentiates the business.
About 52 per cent of the executives surveyed do not feel their company's strategy will lead to success.
"There's clearly a problem with how a lot of companies set strategies. We passionately believe companies must choose what they will be excellent at what they will do rather than just what they sell.
"The survey results, however, suggest that most companies take a somewhat 'incoherent' approach," said Booz & Company managing director Cesare Mainardi said.
The survey, conducted among 1,813 executives from all over the world, across various industries, shows that companies with greater levels of 'coherence,' where executives claim that strategy,
capabilities and product offerings are in sync, perform better.
"The root of the problem is that too many companies grab too hastily for what seems like the next answer to growth.
"They don't have a solid framework to decide which set of opportunities will lead to sustainable success.
"They end up stretched thin, trying to play in too many disparate markets.
The winners, on the other hand, stick to a well-articulated path to success.
"Growth then follows as a consequence of the strategy rather than as a set of separate and often unsuccessful initiatives," Mainardi added.
When it comes to performance, executives who say their companies have very few (one to three) firm-wide strategic priorities are the most likely to say their companies have above average profitability and revenue growth (compared to those having more firm-wide strategic priorities or no list of priorities at all).
