Strategic Architecture for Organizations? Why Term Paper

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Which is more important to the success of an organization, strategy or execution and why?

The instinctive response to this question is, of course, 'the execution' -- obviously, to do what works in the real world is more important than to have an ideal strategy that cannot be put into operation. However, it is also important to remember that merely going with one's gut instincts without a strategic plan for the long and short-term may result in an ineffective course of action and a disappointing result.

Still, according to the popular website Business Balls: "Most companies have strategies, but according to recent studies, between 70% and 90% of organizations that have formulated strategies fail to execute them. A Fortune Magazine study has shown that 7 out of 10 CEOs who fail, do so not because of bad strategy, but because of bad execution.

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In another study of Times 1000 companies, 80% of directors said they had the right strategies but only 14% thought they were implementing them well." (Chapman, 2004) Thus, although having both is ideal, the data supports the idea that an excellent execution may be superior to having a foolproof, ideal strategy in theory.

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