In a world of relentless disruption, a sharp strategy isn’t enough—execution separates winning organizations from the rest. Too often, bold initiatives launch with fanfare only to fizzle out: 44 percent of organizations lose momentum during redesign efforts, and a third fail to deliver after implementation.
Strategy is like a map—it offers a path forward. But you have to follow it to reach your destination. This requires building an execution engine, powered by tech-enabled infrastructure and a relentless focus on performance.
The healthiest organizations embed execution rigor through four critical elements: accountability, coordination and control, capabilities, and motivation. These elements can determine whether an initiative ends up a smooth or rocky journey.
Accountability
How well does your organization hold employees accountable and clarify decision making? These aren’t just operational details—they’re the foundation of sustainable growth.
Accountability starts with clarity, including what’s expected—what needs to be done, by who, and by when—and what’s at stake. Clear goals, constructive feedback, and leaders that ignite ownership also drive accountability. It’s transformative. For example, organizations with strong role clarity are over twice as likely to hold employees accountable and nearly five times more likely to be healthy.*
Consider a tech company that struggled with duplicative roles and unclear responsibilities, which led to bureaucratic decision making, turf wars, silos, and a lack of collaboration. To address this, the company introduced standardized role cards for all employees, published on the company intranet. This transparency held individuals accountable, highlighted role duplications, and made responsibilities clear. It helped foster better collaboration and efficiency. It also empowered employees to take ownership, creating a culture of accountability that felt freeing.
The takeaway? Accountability isn’t about oversight—it’s about enabling success. When employees understand their roles and are encouraged to shape their contributions, organizations don’t just execute better—they thrive.
Coordination and control
How well does your organization measure and manage what matters in the business to drive the right behaviors?
Healthy organizations use rigorous processes to drive execution. Defining the full range of metrics that matter—spanning financial, operational, and risk management—is a cornerstone of success. Managing these metrics with excellence requires structuring a steady cadence of daily work that supports seamless execution with clear expectations for employee behavior.
Consider a car parts supplier that historically incentivized employees based on shipment quantity and delivery speed. While this approach aimed to maximize throughput, it overlooked critical factors like quality and operational efficiency. Employees were penalized for pausing production to fix defects, even when it was the right thing to do. By expanding metrics to include quality and integrity, the company aligned incentives with strategic objectives, driving better outcomes across the board.
When organizations measure what matters—and ensure those metrics guide daily actions—they create the foundation for sustainable success.
Capabilities
How does your organization build the talent engine to thrive in a rapidly evolving future?
Thriving organizations establish a talent engine, ensuring the right people are in the right roles with the right skills to execute effectively. But how can companies prepare their workforce to meet strategic goals amid constant change?
The answer lies in a proactive, agile approach to talent management, looking beyond immediate needs to anticipate future challenges. By integrating employees into workflows, encouraging adaptability, and rethinking traditional structures, organizations can reallocate resources efficiently, embrace technological advancements, and maintain a competitive edge.
Consider a mid-sized bank preparing for the rise of automation and gen AI. Instead of focusing solely on hiring, the company has taken a strategic approach to building capabilities with an initiative to identify critical roles and skills needed over the next decade. It partnered with technology providers for expertise, created cross-functional teams to encourage collaboration, and introduced rotational programs to provide hands-on experience. Leaders continue to regularly assess workforce readiness, then reallocate resources and adjust priorities as needed, to ensure changes stick.
Building capabilities is an ongoing effort. Companies that align capability building with their long-term goals are better positioned to adapt, innovate, and succeed in a rapidly changing world.
Motivation
Does your organization inspire employees to perform at their best?
While each employee may have unique drivers, universal elements—inspirational leadership, meaningful values, career growth opportunities, recognition—can ignite passion and commitment across the workforce. When employees feel motivated and connected to the mission, they’re more likely to take ownership and drive results.
Values are often where organizations falter, anchoring themselves to universal prerequisites. The real power of values lies in defining the unique behaviors and mindsets that will drive an organization forward. Take an insurance company that realized its existing values—a stale list of platitudes—were holding it back. The leadership team asked a bold question: What specific behaviors will help solve problems faster, innovate smarter, and deliver greater value to customers?
The result was a complete overhaul. For example, valuing bold experimentation empowered teams to test new ideas quickly, embrace small failures, and focus on learning and innovation. To embed new values deeply, the company redesigned performance reviews and recognition programs to reward not just alignment with values but their tangible impact.
A motivated organization sustains success through a reinforcing system, energizing employees to excel by recognizing achievements, inspiring them to push beyond perceived limits, and opening doors to meaningful career opportunities.
Call to action
Flawless execution is the driving force that transforms organizations from good to exceptional. Standouts achieve a powerful balance, building unshakable systems and processes while remaining agile enough to adapt and thrive regardless of the terrain.
Prioritizing execution and embedding these principles doesn’t just improve performance—it unlocks the full potential of an organization’s strategy, people, and future. The challenge is clear: Will you make execution your ultimate competitive edge?
The authors wish to thank Nicolette Rainone and Marta Blazejewska for their contributions to this blog post.
*McKinsey OrgHealth Refresh Survey of 3,940 English-speaking employees across the United States (2,068 participants), the United Kingdom (525 participants), Canada (519 participants), Australia (433 participants), and Singapore (395 participants), conducted from May to July 2023.
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This blog post is part of a four-part series on the Organizational Health Index, exploring the core axes of organizational health—alignment, execution, and renewal—and sharing lessons learned from organizations that achieved health and performance gains.