Why Strategies Don't Fail—Our Thinking About Them Does

You may have been asking the wrong question.

"50-90% of strategies fail."

It's one of the most quoted statistics in business. It appears in keynote presentations, board papers and consulting proposals around the world. It has shaped how organisations think about strategy execution for decades.

There's just one problem.

No one really knows whether it's true.

That isn't a trivial academic point. If we've built our understanding of strategy execution on an unsupported statistic, we may have spent years solving the wrong problem.

The better question isn't, "Why do strategies fail?"

It's, "What actually prevents organisations from turning good strategic thinking into better business performance?"

The answer is both more nuanced and far more useful.

The myth that shaped a generation

The familiar claim that 50–90% of strategies fail has become accepted wisdom. Yet when researchers Carlos Cândido and Sérgio Santos reviewed the evidence behind these widely quoted estimates, they reached a striking conclusion.

The true rate of strategy implementation failure remains unknown. Many of the commonly cited figures are based on evidence that is "outdated, fragmentary, fragile or just absent." They caution against using these numbers to justify changes in management theory or practice.

That should give every executive pause.

Evidence matters. If we expect our own strategic decisions to be grounded in reliable evidence, we should apply the same standard to the management ideas we adopt.

The real issue isn't execution alone

If we set aside the folklore, a different picture begins to emerge.

Recent research from McKinsey suggests that only 21% of executives believe their organisation's strategy would pass four or more of its ten tests of a good strategy. Fifteen years earlier, that figure was 35%.

In other words, strategy quality appears to have declined significantly.

This changes the conversation completely.

Poor execution certainly exists. But no amount of disciplined execution can compensate for a strategy built on weak assumptions, superficial insights or unclear choices.

A poor strategy executed perfectly is still unlikely to produce exceptional results.

Execution starts long before implementation

Many organisations think of strategy as a sequence:

1. Analyse the market.

2. Develop the strategy.

3. Communicate it.

4. Execute it.

5. Review performance.

It looks neat. Unfortunately, organisations rarely behave so neatly.

Strategy is not a document that moves through a production line. It is a continuous process of learning, choosing, communicating, coordinating and adapting.

By the time an organisation reaches what it calls "execution", many of the factors determining success have already been established.

For example:

• Was the strategy built on genuine evidence or assumptions?

• Were difficult choices made, or were competing priorities left unresolved?

• Do leaders share a common understanding of what success looks like?

• Have people across different functions understood not just what to do, but why it matters?

• Does the adapt when new evidence comes to light?

These questions cannot be solved by another project plan.

The missing capability: mobilisation

One of the most interesting developments in recent strategy research is the growing emphasis on mobilisation.

Mobilisation sits between strategy formulation and execution.

It is the work of helping an organisation understand, align around and commit to strategic choices before expecting results to follow.

This involves:

• building shared understanding

• testing assumptions

• coordinating across functions

• linking initiatives to strategic objectives

• maintaining momentum through regular review

Many organisations underestimate this phase.

They assume that once the strategy has been approved and communicated, implementation naturally follows.

Experience suggests otherwise.

Better strategies are living systems

Traditional strategy processes often assume a stable environment.

1. Develop a three-year plan.
2. Communicate it.
3. Measure progress.
4. Repeat annually.

Today's organisations operate in a world shaped by AI, geopolitical uncertainty, changing customer expectations and rapid technological change.

Static strategy documents struggle to keep pace.

Successful organisations increasingly treat strategy as a living system rather than a fixed plan.

That means continuously asking questions such as:

• What has changed?

• Which assumptions still hold?

• What evidence has emerged?

• Which priorities need adjusting?

• What have we learned?

Reviewing strategy becomes less about reporting progress and more about improving decisions.

Technology should support thinking—not replace it

Many organisations still manage strategy through disconnected PowerPoint presentations, spreadsheets and meeting notes.

These tools are useful, but they were never designed to support collaborative strategic decision-making.

Modern strategy platforms can help organisations:

• connect evidence to strategic insights

• record assumptions explicitly

• align objectives, initiatives and measures

• improve visibility across teams

• support ongoing review and adaptation

Technology cannot create a good strategy.

But it can make it much easier for organisations to develop, communicate and continuously improve one.

A better question for leaders

Instead of asking:

"Why do strategies fail?"

Try asking:

• Is our strategy based on robust evidence?

• Have we made genuine strategic choices?

• Does everyone understand our priorities?

• Are we coordinating effectively across the organisation?

• Are we regularly testing whether our assumptions remain valid?

These questions shift attention away from blaming execution and towards improving the entire strategic management system.

That is where sustainable competitive advantage is more likely to be found.

Final thoughts

Perhaps the biggest lesson isn't that the famous "70–90% failure rate" is unsupported.

It's that we have allowed a simple statistic to dominate a far more important conversation.

Successful organisations don't simply execute strategy better.

They develop better insights.

They make clearer choices.

They mobilise people more effectively.

They continuously adapt as circumstances change.

Execution still matters.

But execution is only one capability within a much broader discipline of strategic management.

The organisations that outperform their competitors are unlikely to be those with the most detailed implementation plans.

They will be the ones that make better strategic decisions—and keep improving them as the world changes.

Call to action

If you're looking to move beyond static strategy documents and create a more collaborative, evidence-based approach to strategic management, explore how StratNav can help you develop, communicate and continuously improve your strategy.

Or, if you'd like to discuss how your organisation can strengthen its strategic capabilities, book a conversation with Chris C Fox Consulting Limited.

See also:

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