Most strategy work fails at the beginning, not the end. The offsite goes well. The plan is sound. Three months later almost nothing has changed, and everyone blames execution. They are looking in the wrong place.
The situation
A services firm, about ฿90M, ran a clean strategy offsite. The leadership team agreed to move upmarket: fewer, larger clients, higher fees, deeper work. Everyone left aligned. A quarter later the firm was still taking the same small accounts it had decided to stop taking.
The owner wanted to talk about accountability and follow-through. I asked to see how the sales team got paid.
How I read it
When a strategy stalls, the cause usually sits upstream of execution. Two structures defeat more plans than any lack of effort, and both are invisible until you look for them.
The working
The firm paid its salespeople on volume of accounts closed. The new strategy asked them to close fewer, larger, slower deals. The math told them to ignore the strategy, so they did, rationally.
| What strategy asked | What pay rewarded | |
|---|---|---|
| Deal size | Larger | Any size |
| Deal count | Fewer | More |
| Sales cycle | Longer, deeper | Fast close |
| Rational choice | Move upmarket | Keep churning small deals |
No one was obstructing the plan. The plan was simply more expensive to follow than to ignore, given how the business was built. That is what a real diagnosis looks for: not whether the strategy is good, but whether the business is structured to support it.
The move
Before starting any strategy work, I ask one question: what would have to be true about this business for the strategy to actually run? The answer usually names the real problem, and it is rarely the strategy itself.
The answer is not to explain the strategy more clearly. The strategy is clear enough. What is unclear is why the business is built to make it expensive.
Most businesses are not structured for their own strategy, not because of bad leadership, but because structure changes slowly and strategy moves fast. Fix the incentive and the decision path first. Then the plan runs on its own.