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Strategy implementation: What is the failure rate?

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  • Cândido, Carlos J F
  • Santos, Sérgio P

Abstract

It is often claimed that 50–90% of strategic initiatives fail. Although these claims have had a significant impact on management theory and practice, they are controversial. We aim to clarify why this is the case. Towards this end, an extensive review of the literature is presented, assessed, compared and discussed. We conclude that while it is widely acknowledged that the implementation of a new strategy can be a difficult task, the true rate of implementation failure remains to be determined. Most of the estimates presented in the literature are based on evidence that is outdated, fragmentary, fragile or just absent. Careful consideration is advised before using current estimates to justify changes in the theory and practice. A set of guiding principles is presented for assisting researchers to produce better estimates of the rates of failure.

Suggested Citation

  • Cândido, Carlos J F & Santos, Sérgio P, 2015. "Strategy implementation: What is the failure rate?," Journal of Management & Organization, Cambridge University Press, vol. 21(2), pages 237-262, March.
    • Handle: RePEc:cup:jomorg:v:21:y:2015:i:02:p:237-262_00
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    Cited by:

    1. Carlos Cândido & Luis M.S. Coelho & Ruben Peixinho, 2016. "The Financial Impact of a Withdrawn ISO 9001 Certificate," CEFAGE-UE Working Papers 2016_01, University of Evora, CEFAGE-UE (Portugal).
    2. Leurent, Martin & Jasserand, Frédéric & Locatelli, Giorgio & Palm, Jenny & Rämä, Miika & Trianni, Andrea, 2017. "Driving forces and obstacles to nuclear cogeneration in Europe: Lessons learnt from Finland," Energy Policy, Elsevier, vol. 107(C), pages 138-150.
    3. Kelly Cristiny Chinelato Sacramento & Adalberto Americo Fischmann, 2019. "Cognitive and Structural Factors: What Makes Strategy Implementation so Hard?," 2019 Papers psa1759, Job Market Papers.
    4. Eugster, Florian & Wagner, Alexander F., 2020. "Value reporting and firm performance," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 40(C).
    5. Leopold-Wildburger, Ulrike & Strohhecker, Jürgen, 2017. "Strategy map concepts in a balanced scorecard cockpit improve performanceAuthor-Name: Hu, Bo," European Journal of Operational Research, Elsevier, vol. 258(2), pages 664-676.
    6. Philip Awino & James M. Kilika & Stephen M.A Muathe, 2022. "Organization health conceptualized as an emergent capability in a public sector reform program:Empirical and practical implications," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(2), pages 16-28, March.
    7. Mom, T.J.M., 2019. "Strategic Growth and Implementation: Thriving in a Disruptive Landscape," ERIM Inaugural Address Series Research in Management EIA 2019-076-S&E, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam..
    8. Chen, Jeng-Chung & Yu, Vincent F., 2018. "Relationship between human error intervention strategies and unsafe acts: The role of strategy implementability," Journal of Air Transport Management, Elsevier, vol. 69(C), pages 112-122.
    9. Steven E. Wallis, 2020. "Integrative Propositional Analysis for developing capacity in an academic research institution by improving strategic planning," Systems Research and Behavioral Science, Wiley Blackwell, vol. 37(1), pages 56-67, January.
    10. Ahmed, Umair & Carpitella, Silvia & Certa, Antonella, 2021. "An integrated methodological approach for optimising complex systems subjected to predictive maintenance," Reliability Engineering and System Safety, Elsevier, vol. 216(C).
    11. Jürgen Strohhecker, 2016. "Factors influencing strategy implementation decisions: an evaluation of a balanced scorecard cockpit, intelligence, and knowledge," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(1), pages 89-119, February.
    12. Wiston Mbhazima Baloyi & Lourens Johannes Erasmus Beyers, 2020. "The Perceptions of Senior Management with Regard to Strategy Implementation in the Limpopo Provincial Department of South Africa," Asian Journal of Social Sciences and Management Studies, Asian Online Journal Publishing Group, vol. 7(1), pages 62-70.
    13. Bienmali Kombate & Muganga Emmanuel & Kouadio Konan Richard, 2021. "The Implication of the Strategic Implementation Style and Middle Management Effort in Public Organization Strategic Management Implementation and Its Organizational Performance," Journal of Public Administration and Governance, Macrothink Institute, vol. 11(1), pages 125-125, December.
    14. Bies, Suzanne, 2022. "Examining the effectiveness of activation techniques on consumer behavior in temporary loyalty programs," Other publications TiSEM ade86df3-4846-4318-938f-a, Tilburg University, School of Economics and Management.

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