Five Key Principles of Corporate Performance Management

Chapter 2. Why Do Most Companies Fail to Implement Their Strategies?

	Planning is an unnatural process; it is much more fun to do something. And the nicest thing about not planning is that failure comes as a complete surprise.
	--SIR JOHN HENRY-JONES

This chapter discusses the four barriers, popularized by Kaplan and Norton, that companies encounter by failing to realize their strategic objectives. This chapter expands this thinking and brings a brand new perspective on the strategic context for these failures. We turn to MIT professor Dr. Charles Fine’s research on industry rate of change, or “Clock Speed,” and its impacts on companies brought about by failing to understand and develop strategic and management processes to address it. In reactionary efforts to address the four barriers and Clock Speed, enterprises often commence corporate performance management (CPM) projects, many of which fail. For this reason, we will touch on the top five blockers that undermine well-intended business improvement efforts. Five Key Principles offers a comprehensive, lean, and proven approach for strategy implementation and management.

Four Barriers to Strategy Implementation

One of my fondest and most enlightening professional growth experiences was leading one of Kaplan and Norton’s Balanced Scorecard consulting practices. Not only did I have regular interactions with Bob and Dave, but I also had the opportunity to participate with them on research, conferences, and study projects. During these ...