Lever 2 of 7 · Strategy Execution by Design
Strategic clarity and alignment
Your strategy is signed off. The slide deck is sharp. The launch event went well. Six months in, you ask three people in different parts of the business what the strategy is, and you get three different answers.
Strategic clarity and alignment is the second of seven levers in the Strategy Execution by Design Maturity Model. It is whether the direction is sharp enough to filter choices, whether the organisation and the market it operates in are aligned to it, whether it has been translated into one integrated plan, whether people hear it often enough to act on it, and whether it stays alive to a world that keeps shifting underneath it.
What falls within this lever
What it looks like in practice
- Someone three levels down can use the strategy to make a call.
- You can point to one roadmap, not five.
- The operating model was redesigned when the strategy changed.
- People describe the strategy in their own words, unprompted.
- Priorities get revisited more often than once a year.
- The strategy reads as a list of aspirations.
- Each function is delivering its own version of the plan.
- Delivery relies on heroics to bridge a design gap.
- The strategy was communicated at launch and then went quiet.
- Teams are still delivering against assumptions that no longer hold.
Why the strategy is rarely the problem
When a strategy does not land, the cause is rarely that the strategy was bad. It is that the system around it was never designed to carry it.
Whether the direction is sharp enough to filter choices. Whether the operating model can deliver what the strategy demands. Whether each function is working off one integrated plan or five competing ones. Whether people hear it often enough to act on it. Whether it is alive to a world that keeps shifting underneath it.
of the senior leaders I interviewed placed a clear and compelling strategy at the top: the single most important enabler of effective execution.
Reti, R. (2022). Maximising Firm Performance Through Strategy Execution. Massey University. Senior leaders in large New Zealand firms.
If you do not know where you are going, whom you want to be, you cannot understand anything that sits underneath it. There is no organising logic for anything else. It is the compass point.Senior executive, research interview
That is the core argument of this lever. Strategic clarity is not a communication exercise. It is a design discipline. And the absence of it is not a planning gap. It is an execution risk.
Five elements determine whether a strategy guides the work or becomes a list of well-meaning intentions. Each one compounds the others.
Clarity: can your strategy actually guide a decision?
I have read strategies that said “be innovative”, “drive growth”, “be customer centric”, and called themselves complete. They sound inspiring. They guide nothing.
The leaders in my research who described traction had something different in common. Their strategies were sharp. They had made deliberate choices about where to play, how to win, and crucially, what not to do. The choices fit together. They were grounded in real evidence about markets, customers, competitors and risk. They were simple enough to repeat without slides.
And they had clear measures. Not activity counts or output volumes, but a small set of outcomes that would show whether the choices were actually creating value. This part is often underplayed. Measures are what cascade. They turn strategic choice into something every level of the organisation can act on, prioritise against, and be held to. Without them, clarity at the top stays at the top.
Clarity is not about elegance. It is about whether someone three levels down can make a judgement call in the moment and have it serve the strategy. When clarity holds, the strategy becomes the filter through which trade-offs are made. When it does not, every team improvises its own version of north.
Richard Rumelt’s critique of bad strategy still lands here. The hallmark of bad strategy, he wrote, is mistaking goals for strategy. A list of aspirations is not a strategy. It is a wish list. And in execution, the difference matters.
- State what you have chosen not to do, as explicitly as what you have chosen to do.
- Test the strategy on someone three levels down. Can they use it to make a call?
- Define a small set of outcome measures, not activity counts.
- If it cannot be repeated without slides, it is not yet clear.
Fit: does it work inside the organisation, and outside it?
Years ago I worked with a government agency that had moved from strategy formulation straight into delivery. Each leader interpreted the strategy slightly differently. Each one had launched their own initiatives. Within months, those initiatives were pulling against each other. What was missing was not effort. It was fit.
Internal fit is the coherence between the strategy and the structures, processes, technology, data, capabilities and culture inside the organisation. Without it, effort fragments, decisions slow, and silos optimise for themselves. People work hard against each other and do not always realise it. That agency was an internal fit failure. The strategy was clear enough on paper, but the operating model behind it had never been redesigned to support it.
External fit is the alignment between the strategy and the world outside: customers, competitors, regulators, technology, shifting risks and opportunities. Without it, organisations execute efficiently on the wrong things. Projects get delivered. Milestones get hit. But the strategy quietly drifts out of step with reality, and by the time leadership notices, the value case has eroded.
Fit is the goal. The operating model is how it comes to life internally. A discipline of testing the strategy against external signals is how it stays alive externally. Both have to be designed for, not assumed.
McKinsey describes bridging the gap between strategy and operating model as essential to delivering at pace. Nicolaj Siggelkow introduced the idea of dynamic fit: alignment cannot be static, it has to evolve as conditions shift.
- Ask whether the operating model was redesigned when the strategy changed, or only the strategy.
- Name where you are relying on heroics to bridge a design gap.
- Build a standing discipline for testing the strategy against external signals.
- Treat fit as something you design for, not something you assume.
Translation: one integrated plan, or five competing ones?
Over half of the executives I interviewed described the same pattern. After strategy development, collective planning collapsed. Each business area focused on what naturally sat within its remit. Each one built its own version of the plan. The interdependencies between them quietly disappeared.
Strategy rarely lives neatly within one function. Translation is the work of turning strategy into a coherent roadmap that crosses functions, sequences activity, and surfaces what needs to be true for delivery.
Translation, done properly, delivers three things. Clarity on the conditions, activities, resources and capabilities required to deliver the strategy. A foundation for business planning that connects budgets, resourcing and priorities to one coherent path. And a tool for communication, making the strategy easier to explain, share and connect to people’s daily work.
Without it, you get the collision of good intentions. What looks like delivery is actually five disconnected work programmes wearing one cover.
Andrew MacLennan, one of the few scholars to focus explicitly on this, describes translation as the critical bridge between strategy design and operational delivery. McKinsey’s research found the same: organisations that outperform create integrated roadmaps connecting strategic choices to concrete actions.
- Ask whether you can point to one roadmap, or several.
- Sequence the work across functions, not within them.
- Surface the interdependencies early, while they are still cheap to manage.
- Connect budgets and resourcing to the same roadmap, not a parallel one.
Communication: hearing it once is not the same as living it
When was the last time you heard someone outside the executive team talk about the strategy unprompted, and with belief?
A strategy can be clear on paper and supported by the right roadmap, but what makes it real is whether people hear it, remember it and repeat it. As one executive in my research told me: “We had a strategy, but no one explained it clearly or often enough for people to live it.”
This is where many organisations underestimate the work. Neurocognitive research shows that people typically need to hear a new message three to seven times before it begins to register meaningfully. What helps retention is repeated exposure in varied contexts, spaced over time. Not a single launch event. Not a glossy one-pager on the intranet.
The pattern I see in organisations that get this right is that communication is not a moment. It is a system. Leaders tell the story often and consistently. Visuals and roadmaps make the connections tangible. Workshops invite teams to ask what this means for us. Recognition and routines reinforce the message.
A compelling strategy is not one people can quote. It is one they carry.
McKinsey points out that the best organisations cut through noise with simple, repeated narratives that leaders embody every day. Writing in Harvard Business Review, David Lancefield argues that many executives treat strategy communication as an afterthought, which is why even senior managers struggle to recall their priorities.
- Plan for repetition in varied contexts, not a launch moment.
- Give leaders the story in their own words, not a deck to read.
- Create forums where teams answer what this means for us.
- Use recognition and routine to reinforce, not just announcements.
Iteration: is your strategy hearing the world shift?
When was the last time your organisation deviated from its strategic priorities, even when it was clear the world around it had shifted?
Strategy, and the business plan that follows, is too often treated as a done deal. Yet markets shift, customer expectations evolve, and new technologies disrupt faster than most organisations can respond. Faced with change, many overcorrect by expanding the list of strategic priorities until everything is critical and nothing truly is.
Strategy is, at its essence, about choices. That means the discipline to pause, review and re-align when value is not emerging. Dynamic strategic planning treats feedback as fuel, not failure. It builds in the flexibility to course-correct before energy and investment drift in the wrong direction.
In my research, executives voiced frustration that while the world was changing around them, their strategies stayed still. Teams continued delivering against outdated priorities because the system was not designed to adapt. As one leader put it: “We knew things had changed, but the plan didn’t.”
Iteration is not instability. It is discipline. Course correction is competence, not failure.
McKinsey’s research on dynamic resource allocation shows that the most adaptive organisations revisit priorities four to six times more often than their peers, reallocating resources as conditions evolve.
- Set a cadence for revisiting priorities that is more frequent than annual.
- Treat feedback that contradicts the plan as information, not disloyalty.
- Resist expanding the priority list. Choice is the point.
- Reallocate resources when you re-prioritise, or nothing changes.
Bringing it together
These five elements do not operate in isolation. They compound.
Clarity without fit is direction the organisation cannot carry, or that no longer matches the world. Fit without translation is a well-designed organisation working on five different versions of the plan. Translation without communication is a roadmap nobody believes in. Communication without iteration is a story that goes stale as the world moves on.
The pattern I see most often is organisations investing heavily in one or two of these while neglecting the others. They refresh the strategy but do not redesign the operating model. They build a beautiful plan but never translate it across functions. They communicate hard at launch and then go quiet. They review the strategy once a year and call it dynamic.
Each intervention looks reasonable in isolation. Across the system, the gaps compound and execution loses pace.
There is a larger conversation worth having about the role strategy plays in organisations. Strategy development has become an industry: frameworks, off-sites, consultancies, decks, refreshes. The work that gets invested in is the work of formulating the strategy. But my research, and the experience of every executive I have worked with, points somewhere different. The constraint on execution is rarely the quality of the strategic thinking at the top. It is whether the rest of the system has been designed to carry that thinking through the choices, the delivery, and the time it takes for value to emerge.
Strategic clarity and alignment is not the slide deck. It is the discipline of holding the system to the strategy, week after week, long after the launch energy has faded.
Where to start
Pick one strategic priority that matters to your organisation this year. Take five questions to your leadership team.
- Can every leader describe what this priority is, and what we have chosen not to do because of it? If the answers diverge, clarity is the issue.
- Does the operating model actually support delivery internally, and is the strategy still aligned to the world we are operating in? If you are relying on heroics, or executing against assumptions that no longer hold, fit is the issue.
- Is there one integrated plan across functions, or several competing ones? If you cannot point to a single roadmap, translation is the issue.
- When was this priority last reinforced in a way that was not a slide? If you cannot remember, communication is the issue.
- When did we last revisit this priority against what is actually happening in the market? If the answer is the annual review, iteration is the issue.
If you can answer those with confidence, the elements are working. If you cannot, the constraint is not your people. It is the system they are being asked to deliver in.
Not sure which of the seven conditions is holding your execution back?
The Strategy Execution Maturity Model Assessment scores your organisation across all seven levers.
Take the assessment → See the full frameworkWritten by Rebecca Reti, strategy and execution consultant working with boards and executive teams across Australia and New Zealand. Her research on strategy execution in large firms was completed through Massey University in 2022.
References drawn upon for Lever 2
- Kaplan, R. S., & Norton, D. P. (2001). The strategy-focused organization. Harvard Business School Press.
- Lancefield, D. (2023). How to communicate your company’s strategy effectively. Harvard Business Review.
- MacLennan, A. (2010). Strategy execution: Translating strategy into action in complex organizations. Routledge.
- McKinsey & Company. (2017). How to put your money where your strategy is (dynamic resource allocation).
- Reti, R. (2022). Maximising firm performance through strategy execution. Massey University.
- Rumelt, R. (2011). Good strategy, bad strategy: The difference and why it matters. Crown Business.
- Siggelkow, N. (2001). Change in the presence of fit. Academy of Management Journal, 44(4), 838–857.
