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Strategy implementation: What is the failure rate?

Published online by Cambridge University Press:  14 January 2015

Carlos J F Cândido  and
Sérgio P Santos
Carlos J F Cândido*
Affiliation:
CEFAGE, Évora, Portugal; and Faculty of Economics, University of Algarve, Faro, Portugal
Sérgio P Santos
Affiliation:
CEFAGE, Évora, Portugal; and Faculty of Economics, University of Algarve, Faro, Portugal
*
Corresponding author: ccandido@ualg.pt
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Abstract

It is often claimed that 50–90% of strategic initiatives fail. Although these claims have had a significant impact on management theory and practice, they are controversial. We aim to clarify why this is the case. Towards this end, an extensive review of the literature is presented, assessed, compared and discussed. We conclude that while it is widely acknowledged that the implementation of a new strategy can be a difficult task, the true rate of implementation failure remains to be determined. Most of the estimates presented in the literature are based on evidence that is outdated, fragmentary, fragile or just absent. Careful consideration is advised before using current estimates to justify changes in the theory and practice. A set of guiding principles is presented for assisting researchers to produce better estimates of the rates of failure.

Keywords

strategy implementationbusiness strategystrategic change managementfailure ratesuccess
Type
Research Article
Information
Journal of Management & Organization , Volume 21 , Issue 2 , March 2015 , pp. 237 - 262
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2015 

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