Most Australian businesses fail to execute their strategy because the operating model was not redesigned to execute it, accountability was not assigned to specific individuals, the leadership team is not aligned, and the capability required was not built.
The strategy execution gap is one of the most consistent and costly problems in Australian business. Most strategic plans are not executed as intended, and most businesses significantly underperform against their strategic targets.
The operating model was not redesigned. The most common reason strategies fail is that the operating model was not redesigned to execute them. A new strategy requires different accountability structures, different decision rights, and different capability frameworks. When the strategy changes but the operating model does not, the organisation continues to execute the old strategy.
Accountability was not assigned. Strategy execution requires that someone is genuinely accountable for each strategic priority — not responsible in a shared sense, but accountable in the sense that their performance is measured against the strategic outcome. When strategic priorities are owned by committees or by no one in particular, they do not get executed.
The leadership team is not aligned. When the leadership team does not share a common understanding of the strategy, the priorities and the accountability structure, the organisation pulls in different directions.
Capability was not built. New strategies often require new capabilities. When the capability investment does not accompany the strategic investment, the organisation cannot execute the strategy regardless of how well it is designed.
Closing the strategy execution gap requires redesigning the operating model to execute the strategy. Loop Consulting Group's OP3 Methodology is specifically designed to close this gap.
Contact Loop Consulting Group at [loopbc.com.au](https://www.loopbc.com.au) to discuss your strategy execution challenges.
Loop Consulting Group works with Australian businesses scaling from $5M to $50M. If this question reflects a challenge you're facing, let's talk.