The First Word: When strategy fails, it’s usually not the plan—it’s the people

In over two decades of helping organisations implement strategy across the region, I’ve noticed a recurring pattern: businesses rarely fail because they lack good ideas. They fail because people aren’t aligned behind those ideas.

Singapore is a perfect case in point. With over 400,000 registered businesses and a population of just under 6 million, there’s approximately one business for every 15 residents—a remarkably high ratio. And yet, the rate of business closures has steadily increased, with 50,423 shutting down in 2022 alone, the highest figure since 2016.

This isn’t just a numbers problem. It’s a people problem.

Too often, companies invest heavily in crafting impressive strategic plans. These documents may appear polished, with ambitious goals and seemingly structured timelines. But if you walk into the organisation and ask frontline employees how their day-to-day tasks connect to the company’s overarching goals, you’ll likely be met with blank stares.

So, where is the disconnect?

The Illusion of Alignment

Many companies create strategies to fulfil governance requirements or impress stakeholders. But strategy only works when it’s internalised, not merely announced. If senior leadership isn’t fully aligned, that dissonance trickles down rapidly. A CEO might be focused on innovation, while department heads remain bogged down in short-term firefighting. The result? Conflicting priorities, mixed messages, and inertia.

This misalignment is often invisible on paper. The plan looks solid, but in practice, different teams are rowing in opposite directions.

Execution Lives and Dies with Clarity

One of the most overlooked responsibilities in HR is ensuring that every employee—from the executive suite to entry-level hires—understands their role in executing strategy.

This isn’t just a communications issue; it’s a design issue. Roles must be clearly defined, KPIs must cascade from strategy, and managers must be empowered to coach their teams accordingly.

Employees don’t resist strategy—they resist confusion.

Culture Is the Execution Engine

Organisational culture often determines whether strategy gains traction or stalls. A culture that tolerates silos, punishes failure, or lacks psychological safety will quietly undermine even the most brilliant plan. People won’t speak up, challenge assumptions, or innovate when the cultural environment discourages it.

In Southeast Asia, where hierarchical structures still dominate many organisations, and the power-distance ratio is way above the global average, it’s especially important for HR leaders to consciously build cultures that encourage dialogue, accountability, and cross-functional collaboration.

So What Can HR Do?

HR is uniquely positioned to turn strategy into action by working at the intersection of leadership, communication, and culture. Here’s how:

  • Facilitate Leadership Alignment: Before rolling out any strategic plan, HR should ensure that the leadership team is genuinely on the same page—not just in meetings, but in mindset and priorities.
  • Drive Personal Accountability: Partner with department heads to cascade strategic goals into team-level objectives and individual strategic KPIs, and include these KPIs in their Performance Management System for accountability. Make sure everyone knows the impact of their strategic contribution on their overall appraisal. I’ve found that leading companies make strategic contributions at least 20% of an executive’s overall annual appraisal.
  • Champion Culture Building: Invest in developing the culture necessary for the success of the implementation of the strategies. Remember that when culture and strategy collide, culture always wins. For this reason, successful companies that I’ve worked with usually have a separate culture development strategic plan going in parallel with the main strategic plan.
  • Listen & Coach: Listen deeply, whether by focus groups, one-to-ones, or informal conversations , to spot early warning signs of misalignment or confusion. Also invest in coaching, both in coaching senior management, and developing their own coaching skills, to improve engagement and performance.

It’s Time to Rethink Strategy as a People Discipline

Strategic planning is no longer the sole domain of the C-suite or consultants. For strategies to succeed, HR leaders must take their seat at the table to advocate the people strategies required to drive execution.

Because ultimately, strategy doesn’t fail in the boardroom. It fails—or succeeds—with people.

 


 

stephen-lin-copyAbout the author

Stephen Lin is a Strategic Management Consultant with 22 years of experience in the consulting field. With over 37 years of senior management experience, Stephen has consulted for-profit and non-profit organisations across the Asia Pacific and has helped develop more than 2,500 managers from 41 countries in strategic management competency. He holds a bachelor’s degree in engineering from Germany and a Master’s in Organisational Leadership from Australia.

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