Published: 15 February 2024
Summary
Only a minority of ongoing business actions align with corporate strategy, too often making already-set corporate strategy obsolete. CFOs should use this research to identify the high-leverage points where they can drive better strategic alignment via their business-facing finance staff.
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Overview
Key Findings
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Often, business actions are not aligned with already-set corporate strategy. Only 46% of business executives and managers believe their own efforts align with corporate strategy, and only 30% of corporate strategists report their organizations’ execution efforts align with corporate strategy.
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Strategic misalignment occurs for two primary reasons: Business decision makers lack ongoing visibility into critical project interdependencies and make poor in-the-moment choices when under pressure to react to change.
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CFOs themselves can’t and shouldn’t intervene in the everyday decisions that drive strategic misalignment, but they can act preemptively to alert their business-facing finance staff (primarily business unit CFOs and finance
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Analysts:
Finance Research Team