By Guest Contributor Johan Grönstedt

Picture a CFO meticulously recording transactions in a leather-bound ledger, quill scratching against parchment. Imagine rows of bookkeepers hunched over desks, their debit and credit recorded in a symphony of rustling paper. Now, shift your gaze to the Sales Manager’s office. Instead of sleek CRMs, you find a cluttered desk with a rolodex spinning endlessly. Fax machines whirring as contracts are sent out, and sales activities summarized as handwritten notes. The absence of digital marketing strategies, lead generation tools, sales funnels, and opportunity boards paints an archaic picture.

It might sound like a scene from a bygone era, but for many CEOs, this antiquated picture isn’t far from reality when it comes to strategy execution. Sure, they’re not completely cut off from the digital world – emails fly back and forth, and virtual meetings are the norm. But when it comes to the core of their strategic work, many CEOs remain stubbornly analog.

This disconnect is more than just an interesting observation. Accenture’s research reveals a startling paradox: while CEOs acknowledge the urgent need for digital transformation in strategy, only a meager 5% of organizations are fully leveraging purpose-built software for strategy execution.[1] This statistic not only highlights a missed opportunity but also indicates a huge issue: the reliance on traditional tools, while familiar, restricts their capability to manage the complexities of strategic planning and execution, choosing instead to maintain an alarmingly analog approach in a progressively digital world.

The Perils of Analog Strategy in a Digital World

While having a digital snapshot of daily operations is undoubtedly helpful, it’s not enough.  Attempting to shoehorn strategy into the framework of Business Intelligence (BI) is like trying to fit a square peg into a round hole. It simply doesn’t work.

BI systems are excellent at collecting and analyzing historical data. They can tell you where you’ve been, what worked, and what didn’t.  But they’re less adept at charting a course for the future.  Even “real-time” data in BI is often a reflection of past decisions, a rearview mirror in a world that demands a clear view of the road ahead.

Boards, stakeholders, and the market are clamoring for more than just innovation; they want to see swift, tangible progress.  This urgency is amplified by an era of unprecedented disruption, where technological advancements and shifting consumer behaviors can upend entire industries overnight.

CEOs need tools that can keep pace with this breakneck speed of change.  They need insights that offer foresight, not just hindsight. They need the ability to pivot quickly and decisively in response to new challenges and opportunities.  In short, they need a strategic GPS, not just a historical record.

The Mirage of Financial Promises

As the CEO’s role becomes increasingly complex and demanding, a clear strategic view is more crucial than ever. Yet, in many organizations, this view is obscured by a fog of “beautified” data. Managers, eager to please, often highlight successes while downplaying setbacks, creating a skewed understanding of performance.

This leaves senior executives in a constant game of detective, piecing together the full picture from fragmented and often misleading reports. They’re forced to rely on an encyclopedic memory, recalling overlooked KPIs, missed milestones, and looming deadlines. The role shifts from strategic overseer to relentless inquisitor, creating a mentally and emotionally draining cycle of doubt and interrogation.

As these polished reports climb the corporate ladder, they gain layers of optimism, further obscuring reality. By the time they reach the CEO, they’re often a far cry from the ground truth. This embellishment comes at a steep price: Harvard Business Review reveals that companies typically achieve only 63% of their projected financial growth, a testament to the high cost of looking good.[2] This disconnect erodes trust and can ultimately derail a CEO’s career.

The problem is compounded by the prevalence of “hockey-stick” projections – strategic plans that promise cautious growth in the near term, followed by ambitious leaps in later years. When these early years fall short, strategies are reset, and new plans emerge, perpetuating a cycle of over-promise and under-delivery.

For a CEO navigating a company through change, relying on such data is like steering a ship with a faulty compass. Conventional KPIs offer limited insights, and are often too late. Leaders need real-time progress insights to identify and address bottlenecks and resistance proactively. They need tools that cut through the fog of embellished data and provide a clear, unobstructed view of the strategic landscape.

It’s time to turn the page on outdated practices and embrace a culture of transparency and realism. Strategies and reports must reflect the true situation, allowing for course corrections and sustainable growth. The speed at which leaders can pinpoint and resolve execution roadblocks is crucial; it directly impacts the success or failure of their strategic initiatives.

The Evolution of Strategic Software: Simplifying Growth in the Digital Age

The evolution of strategic software has been hampered by a disconnect between traditional software providers and the unique needs of CEOs. These companies often prioritize operational tasks and incremental improvements, overlooking the big-picture strategic vision that CEOs grapple with daily. Their solutions, while flexible, can lead to a fragmented strategic landscape, with multiple disconnected methods of execution creating confusion rather than clarity.

Similarly, while strategy consultants offer valuable guidance, their project-based approach is not suitable for ongoing execution. The issue is that offering guidance on an hourly basis is not scalable across an organization – you’ll never achieve the critical mass necessary for impactful change. While these consultants excel in strategy development, delegating execution to consultants is a very expensive way of getting things done in the 21^st century.

This leaves many senior leaders clinging to outdated tools like PowerPoint and Excel, playing by an old playbook in a game that’s rapidly evolving. It’s time for a change.

The Digital Imperative: Leading from the Front

In every field, tools and techniques evolve to meet the demands of the times. A carpenter wouldn’t dream of using a hand drill when a power drill is available, just as a surgeon wouldn’t trade a scalpel for a rusty hacksaw. Yet, many business leaders cling to outdated methods, hindering their ability to navigate today’s complex landscape.

A study by MIT Sloan Management Review underscores this point. It found that companies led by digitally competent teams significantly outperform their peers.[3] The message is clear: CEOs who embrace digital tools don’t just survive; they thrive.

As a CEO, you have a unique responsibility to guide your organization’s evolution. I understand the challenges you face. It’s easy to default to familiar, operationally-focused software when seeking input from your team. But remember, you have the overarching vision that no one else possesses.

This is your permission to lead with conviction. If you see the need for change, for modern tools that align with your strategic agenda, don’t hesitate to push for them. It’s not about exerting authority; it’s about embracing your responsibility as a leader.

To every CEO reading this: trust your instincts. Don’t shy away from being the catalyst for change. Your ability to say, “We need this,” and lead the charge, even when it’s easier to maintain the status quo, is what sets you apart. Simply put; the era of the analog CEO is ending. The future belongs to those who leverage technology to simplify growth, amplify impact, and achieve strategic success.

The message is clear. CEOs must embrace the most advanced and suitable digital tools available. It’s not just about keeping up; it’s about leading effectively, efficiently, and with vision. CEOs who lag behind on this will be left behind.

 

[1] Accenture. “CEOs Identify Combination of Data, Technology, and People as Future Growth Driver, Yet Only 5 Percent of Organizations Realizing Its Value” Newsroom, 2023. https://newsroom.accenture.com/news/2023/ceos-identify-combination-of-data-technology-and-people-as-future-growth-driver-yet-only-5-percent-of-organizations-realizing-its-value

[2] [2] Mankins, Michael C., and Richard Steele. “Turning Great Strategy into Great Performance” Harvard Business Review, July 2005. https://hbr.org/2005/07/turning-great-strategy-into-great-performance

[3] Kane, Gerald C., et al. “Does Your C-Suite Have Enough Digital Smarts?” MIT Sloan Management Review. https://sloanreview.mit.edu/article/does-your-c-suite-have-enough-digital-smarts/

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