Why Strategy Fails in Many Organizations
By Horizons Insights — 2025 — 5 min read
In this region, we have seen strategies written every year with ambition, but too often they remain on paper. Leaders invest time, consultants prepare documents, committees approve plans, yet the actual impact on the ground is limited. Studies confirm this is not just a local problem. Globally, nearly 9 out of 10 transformation programs fall short of their original goals (Bain, 2024). The issue is not usually the quality of the strategy itself, but the way it is understood, owned, and executed inside the organization.
Lack of clarity and alignment
A strategy can look good in the boardroom, but if people across the organization do not understand it, it will not move forward. In many cases, departments continue working in silos, chasing their own KPIs, but disconnected from the larger vision. Research shows that about two-thirds of business units are not fully aligned with corporate strategy. When this happens, energy is wasted, and results are diluted. Lesson for leaders: keep strategy simple, communicate it often, and make sure every team sees its role in the bigger picture.
Over-reliance on a few people
Another common pattern is depending too much on a small group of high performers. These individuals are asked to carry out the strategy while the rest of the organization is left on the sidelines. This creates pressure on a few shoulders and does not build lasting capability. Change cannot be sustained this way. Lesson for leaders: invest in the wider team, not only the top 5 percent. Build capacity across the organization so execution is shared and sustainable.
Rigid plans in a changing environment
Many strategies assume that the market, technology, and regulation will stay the same for three to five years. But we know the reality in the GCC is different. Oil prices shift, governments push new reforms, and AI is changing industries overnight. A strategy that does not adapt becomes irrelevant within months. Lesson for leaders: review and adjust your strategy frequently. Build in flexibility, test ideas in smaller pilots, and use data to sense when assumptions are no longer valid.
Weak governance and accountability
Even when direction is clear, many organizations fail because nobody is truly accountable for driving execution. Initiatives fall between departments, meetings happen without decisions, and progress is not tracked. Without discipline, strategy becomes only talk. Lesson for leaders: put in place governance that is active, not symbolic. Assign ownership, track progress transparently, and adjust when results are off track.
Final thought
Strategy fails not because leaders do not think big enough, but because the connection between vision and daily execution is weak. In our region, with all the opportunities and pressures of transformation, leaders cannot afford the strategy to remain a document. Strategy must live in the structure, in the systems, in the culture, and in the actions of people at every level. The real test of leadership is not in writing the plan but in making it work.