How to tell a strategy problem from an execution problem

When results disappoint, leadership teams usually reach for one of two fixes. Either "we need a new strategy" or "we need to execute better." Picking the wrong one is expensive, because it can take a year to find out.

Signs it's a strategy problem

• The team carried out the plan, and it still didn't work

• Different leaders give different answers to "who are we for?"

• Wins come from customers you never planned to serve

Signs it's an execution problem

• The plan is clear, but nothing has owners and dates

• Priorities change every few weeks

• The same initiatives appear in this year's plan as in last year's

Three questions that separate them

1. If we had done everything we said we would, would we be where we wanted to be?

2. Can each leader explain the plan in one sentence, and do the sentences match?

3. Where did the time actually go last quarter?

A "no" to the first question points to strategy. A "no" to the second points to alignment. The third usually points to execution.

The mixed case

Often it's both: a plan that was roughly right, carried out at half strength. Fix execution first. It's cheaper, and it gives you clean evidence about whether the strategy is the problem.