High performers excel in strategy execution amid data challenges
High-performing companies are widening the gap with competitors by aligning speed, adaptability, and governance in strategy execution, new research shows. A global benchmark report from Planview highlights increased execution pace among businesses, but reveals declining confidence in their ability to keep up with change.
Confidence decline
Only 28% of organisations now strongly agree they are able to adapt quickly to change, a significant drop from 40% four years ago. The report finds that although businesses are under mounting pressure to accelerate decision-making-nearly half of companies say this is critical, up from 35%-many struggle to maintain the flexibility required to navigate rapid shifts in the market.
Louise K. Allen, Chief Product Officer at Planview, said,
"The data reveals a concerning disconnect in an era where seismic change is the norm. Market shifts are more frequent, competitive pressures are higher, and investments are more closely scrutinised. The risks and rewards are much greater, and top performing organizations know that speed alone isn't enough to drive value; to thrive, organisations need to be able to systematically navigate change by connecting strategy to execution using data, technology, and processes."
Data obstacles
Access to timely data remains a significant obstacle, with 60% of surveyed companies reporting they lack adequate data for effective decision-making. While there has been modest progress compared to 2021, real-time data capture is now an even greater challenge, cited by 37% of organisations, up from 21% previously. These limitations are linked to the main barriers in strategy execution: complex approval processes (39%), misalignment (33%), and slow decision-making (32%).
Technology's impact
Investment in Strategic Portfolio Management (SPM) and Project Portfolio Management (PPM) tools is proving beneficial. Organisations utilising such technology solutions are twice as likely to be able to simplify and automate data sharing compared to those not using these tools. They are also 1.6 times more likely to exceed their revenue goals.
Companies categorised as "Leaders"-those excelling in strategy execution-see notable benefits from technology, with 55% strongly agreeing that they have the right technology in place, compared to just 3% of low performers. Leaders achieve higher visibility and alignment, stronger governance, and improved access to accurate data. They are also 9.5 times more likely than others to adapt swiftly to change and report positive quality outcomes.
AI differentiation
Artificial intelligence is emerging as a significant differentiator. Leaders in the report are eight times more likely than their peers to use AI across multiple functions, such as risk identification, resource allocation, and reporting. This widespread adoption supports enhanced adaptability, risk mitigation, and operational efficiency across organisations.
Execution and outcomes
Leaders achieved 1.5 times more of their strategic goals and surpassed revenue targets by 12%, compared to non-leading organisations which saw a slight negative performance. These organisations demonstrate centralised coordination, frequent strategy reviews, and a streamlined approach to data and technology integration.
According to the research, there is a clear correlation between the use of portfolio management platforms and improved execution competencies. Companies using such software are twice as likely to be able to analyse and share information easily, facilitating better alignment between strategy and outcomes.
"Our research clearly shows that high-performing organisations systematically address the fundamentals across technology, process, and people with centralised coordination, frequent strategy reviews, effective technology and data access, and aligned execution. These are integrated capabilities that work together to enable the organisation to thrive through change and disruption," said Allen.
