When strategy execution falls short, most CEOs look in the wrong place for answers. They focus on what becomes visible after execution has begun – missed targets, slow adoption, uneven performance or resistance. The response is often swift and familiar. New metrics are introduced, pressure to perform increases and structures are redesigned.
These actions create movement, but they rarely address the underlying issue. In many cases, the problems began much earlier. The issue often lies in the assumptions leaders made about their people before execution even began – assumptions about how work actually gets done, what drives behavior and whether the conditions required for successful execution are truly in place.
Across organizations, a consistent pattern emerges. Executive teams tend to rely on a set of four assumptions that feel reasonable but are often incorrect.
Once a strategy has been communicated, leaders often assume it has been understood. In practice, this is a risky assumption. Even within senior teams, interpretations of priorities often differ. Further down the organization, understanding becomes even more fragmented. Employees closest to execution are typically unclear on what the new strategy means for them. Communication without shared understanding leads to inconsistent execution, even when commitment is high.
Different interpretations of the strategy by leaders and middle managers often translate into mixed signals. An employee’s functional leader may emphasize revenue growth, while their regional leader prioritizes margins. As a result, execution stalls because people are confused and either hesitate to act or take conflicting actions.
When results fall short, leaders tend to focus on visible symptoms such as resistance, low productivity or turnover. These are real, but they are not the root cause.
Solutions must be tailored to each organization’s unique DNA.
The underlying issues are unclear priorities, misaligned incentives or ambiguous decision rights that make it difficult for people to act with confidence. So, they hesitate to act, causing executives to believe the problem is that people are resisting. What appears to be resistance is often hesitation caused by a lack of clarity.
Addressing symptoms without understanding root causes leads to repeated cycles of solutions without meaningful improvement.
There is a natural inclination to rely on benchmarks or established best practices for solutions to execution issues. While these can provide a useful perspective, they can also obscure what is unique about a given organization’s problems.
Each organization has its own patterns of decision-making, incentives and behaviors – its own operating system or organizational DNA. It is dangerous to assume that a root cause in most organizations is a root cause in a given company. What works in one company may actually be harmful in another. Solutions must be tailored to each organization’s unique DNA.
If these assumptions are often wrong, why do they persist? Part of the answer lies in how executive teams operate. Testing assumptions can create personal and political risk. If those assumptions prove false, they may call prior decisions, leadership alignment or executive credibility into question.
At the same time, organizations tend to reward action more than reflection. Leaders are expected to maintain momentum and demonstrate progress, so pausing to test assumptions can feel like slowing down or introducing doubt.
Feedback becomes filtered as it moves upward and what reaches senior leadership is often more positive than the reality.
The answer also lies in how organizations function. Feedback becomes filtered as it moves upward and what reaches senior leadership is often more positive than the reality experienced by those responsible for execution.
Most organizations also measure outcomes, not whether people understand priorities or know how to act on them. The result is a familiar pattern: confidence at the top, confusion below. When these assumptions are tested, the insights can lead to significantly improve execution results.
One CEO of a manufacturing company chose to test their assumptions before pushing harder on execution. What she found gave her insights into what she could do easily and immediately to set the stage for a successful strategy implementation.
Her manufacturing company was going through four major transitions at once:
● Her succession as the new CEO
● A shift in strategy, from innovation to efficiency
● A major ERP implementation
● Construction of a new warehouse
Feeling the weight of leading multiple changes at once, she decided to test the assumptions behind the strategy before taking any actions. The results were a wake-up call.
Confidential feedback from 80 percent of the firm included two significant surprises:
● Only about 50 percent of employees, including the C-suite, believed the company’s direction was clear
● Less than 50 percent thought rewards and advancement criteria were clear
Instead of responding with more emails or charging ahead with change initiatives, she first focused on removing the identified barriers to execution. She concentrated on:
● Clarifying direction and values through a series of interactive town hall meetings
● Aligning performance management with the new strategic priorities
One year later, the outcomes were measurable:
● Clarity of direction and values increased 57 percent
● The ERP system was implemented successfully
● The warehouse was completed on time and on budget
● The company won the largest contract in its history
● Turnover dropped by 20 percent
Her strategy did not change. The assumptions behind execution did. By grounding her actions in feedback unique to her organization, she was able to lead a successful strategic pivot.
Leaders cannot out-execute flawed assumptions. When execution is built on untested beliefs about how the organization actually works, even well-designed strategies will struggle.
The most effective organizations recognize that execution does not begin with action. It begins with understanding whether the organization is truly prepared to execute. Before questioning the capability or commitment of your people, examine the assumptions you have made about them. Those assumptions may be the most significant risk you have yet to test.
This is why many CEOs continue to fund strategies that fail. They are solving the problems they can see, rather than the ones hidden behind the assumptions they have not tested.
Michael Seitchik
Contributor Collective Member
Michael Seitchik helps CEOs and leadership teams uncover and act on the hidden obstacles that limit successful strategy execution and executive performance. His work focuses on helping leaders move beyond surface-level symptoms to identify the root causes that block execution, often in areas that do not show up in dashboards or leadership meetings. Find out more at https://www.michaelseitchik.com