1. Strategy Implementation 2016 Survey Results © Bridges Business Consultancy Int Pte Ltd, 2016

2. Introduction For the last 14 years, Bridges has been researching strategy implementation. The research is part of our mantra to support leaders to succeed in implementing their strategy. It has revealed interesting trends, none more important than knowing leaders are now improving in their ability to execute strategy. This year’s results show that one in three organizations is now succeeding compared with Bridges’ first research in 2002 that revealed nine out of ten were failing. Our current research has also contributed to our chief executive's new book Excellence in Execution—HOW to Implement Strategy, to be released in September 2016, as well as developing new tools and techniques to support leaders. As leaders have become more knowledgeable about the subject of execution, we have noticed a shift from asking why strategy implementation is important to how it’s achieved. Our latest research involved 144 leaders (92% from C-suite) from 38 organizations in 18 different countries. Among the organizations represented were 43% multi-national companies, 42% small or medium-sized enterprises and 15% public sector. Industries represented in the survey included IT, financial institutions, manufacturing, consultancy, telecoms, oil and gas, life science and legal. © Bridges Business Consultancy Int Pte Ltd, 2016

3. Executive Overview The good news is that organizations are improving in their ability to implement strategy and the failure rate has fallen from 90% (2002) to 67% (2016). One in every two leaders rated implementation as equal in importance to strategy. Most people (78%) feel recognized for their implementation efforts in their organizations It is of concern, though, that leaders spend only one day a month discussing their strategy’s implementation. Also concerning is that fewer leaders (down from 80% to 68%) believe their organization is good at developing strategy compared with 2012 research, and that one in three leaders rates its organization as being poor or very poor in its ability to implement. The reasons that implementation is failing fluctuate depending on organizational circumstances. In 2016, the top three reasons it is failing are 1) Poor Communication, 2) Lack of Leadership and 3) Using the Wrong Measures. Communication remains a constant issue that organizations have yet to resolve. Only one in five organizations reviews its execution monthly and only half of the leaders (46%) believe their organization is good at implementing strategy. However, two-thirds (67%) of leaders believe their organization has the talent required to successfully execute. © Bridges Business Consultancy Int Pte Ltd, 2016

4. Q1: Which initiatives are you currently undertaking or have conducted in the past three years? From our surveys and this year’s new geographical markets, Vision, Mission and Values and New Corporate Strategy are consistently among the top three initiatives undertaken. Merger/Acquisitions continues to be in the top six. Digital Mindset and Big Data are new entrants to the list. © Bridges Business Consultancy Int Pte Ltd, 2016

5. Q2: Do you believe your organization is good at crafting strategy? Two thirds (67%) of leaders believe their organization is good at crafting strategy but only 47% believe their organization is good at implementing strategy. Q3: Do you believe your organization is good at implementing strategy? No Yes No 47% 53% © Bridges Business Consultancy Int Pte Ltd, 2016

6. Q4: What percentage of strategy implementations are successful in your organization (achieving at least 50% of goals)? Only 10% of organizations surveyed achieve at least two-thirds of their strategy objectives, with 36% achieving between 50%-67% and 54% achieving less than 50%. © Bridges Business Consultancy Int Pte Ltd, 2016

7. Q5: What is the single greatest challenge your organization faces to implement its strategy? Lack of people alignment and collaboration No clear direction/goals Unmotivated to participate Lack of resources Poor communication Feel unsafe changing culture Lack of leadership Unwilling to change Corruption in the system Politics and conflicts Lack of support from the board Multiple stakeholders Strategy is not consistent The verbatim comments have been consistent over the 14 years of Bridges’ research. Lack of buy-in Issues linking tactical ops with strategic objectives Why change from what we always do Lack of clarity Rigid, historical mindset Poor measures Gaining traction at the start Not making deadlines Lack of alignment across the businesses Poor follow up Lack of time Lack of budget Getting everyone on the same page Verbatim comments: © Bridges Business Consultancy Int Pte Ltd, 2016

8. Q6: How much time do leaders spend (approximately) discussing strategy in a month as opposed to discussing operations and day-to-day challenges? More than 40 hours 30-40 hours 20-30 hours 10-20 hours 1-10 hours Less than one hour In an alarming 49% of organizations, leaders spend only one day a month reviewing their implementation. © Bridges Business Consultancy Int Pte Ltd, 2016

9. Q7: Which is perceived as more important in your organization? Q8: How do you rate your organization's performance in implementing strategy? Strategy Implem- entation Equal Importance Encouragingly, almost 50% of leaders rate implementation as important as strategy, but there is still plenty of room for improvement. One in three leaders rates its organization as poor or very poor at implementing strategy. © Bridges Business Consultancy Int Pte Ltd, 2016

10. Q9: My organization has the leadership talent required to successfully implement the strategy. Agree Disagree 33% 67% Q10: Does your immediate boss recognize you for your implementation contribution? Two-thirds (67%) of leaders believe their organization has the talent required to implement and 8 out of 10 (78%) people feel recognized for their efforts. 22% 78% No Yes © Bridges Business Consultancy Int Pte Ltd, 2016

11. Q11: Please rank the reasons you think implementation fails, with 1 being the top reason. In 2016, the top three reasons for implementation failures are 1) Poor Communication, 2) Lack of Leadership and 3) Using the Wrong Measures. © Bridges Business Consultancy Int Pte Ltd, 2016

12. Q12: Do you have an effective measurement system in place for tracking implementation, such as the Balanced Scorecard? Q13: How often do you review the implementation for the whole organization? Leaders in over half the organizations interviewed have a measurement system in place. The leaders in only one in five organizations review their implementation monthly. No Yes © Bridges Business Consultancy Int Pte Ltd, 2016

13. Bridges Business Consultancy IntBridges Business Consultancy Int, a global pioneer in the field of strategy implementation, was founded at the start of the millennium to research, develop and integrate corporate strategy implementation. It is our singular focus and we work with governments, multi- national organizations and local businesses in five continents to assist them in executing their strategy. Bridges has been working ferociously to reverse the poor record of successful implementations through consulting, offering public and in-house seminars, and publishing various material. We have also developed the Implementation Hub – your portal to strategy implementation success. This website is packed with over 400 resources from speeches conducted around the world to the Implementation Compass™ explaining the eight directions leaders need to consider to achieve excellence in execution.Implementation Hub Our chief executive and founder, Robin Speculand, has two best-selling books on strategy implementation. This first is Bricks to Bridges: Make Your Strategy Come Alive. It introduced the Implementation Compass and spurred Bridges’ signature seminar, which runs in more than 35 cities around the world. The second book Beyond Strategy: The Leader’s Role in Successful Implementation specifically identifies the actions leaders must take to reverse the staggering failure rate of strategy implementation. Bridges Consultancy’s work has been featured on global and local media, including the BBC Global, CNBC, Financial Times and various strategy journals. Strategy implementation is not rocket science; it is common sense. Just because it is common sense, however, does not mean it is common practice. At heart, we are a team of people who truly believe in—and passionately focus on—strategy implementation. We are here to share best practices in this important field. All the best on your implementation journey. The Bridges Team IF YOU REQUIRE MORE INFORMATION OR SUPPORT PLEASE CONTACT US: bridges@bridgesconsultancy.com +65 68860123