Making Strategies Come to Life: Lessons from United Airlines and IBM

Why Do Business Strategies Fail?

Have you ever wondered why some big companies with great ideas still fail? It’s like having a perfect recipe but still not getting the cake right. Let’s look at two big names, United Airlines and IBM, and see what we can learn from their mistakes.

United Airlines: A Good Idea That Didn’t Fly

United Airlines tried to start a cheaper airline to compete with others like Southwest. Their idea was good: offer low prices and get more passengers. But they had a problem. They couldn’t find a way to keep prices low and still make enough money. It’s like trying to sell lemonade for 50 cents when it costs you $1 to make it. That just doesn’t work.

IBM: Missing the Computer Wave

IBM knew a lot about computers and should have been the leader in personal computers. But they made a mistake. They kept focusing on big, old-style computers and didn’t pay enough attention to the new personal computers that everyone wanted. It’s like a baker who’s great at making bread but doesn’t notice that everyone wants cupcakes now.

What’s the Real Problem?

These stories tell us something important. It’s not enough to have a good plan. You need to be able to make it work. Many big bosses in companies admit they’re not great at this. They can think of great ideas but can’t always put them into action. This can lead to losing customers, money, and sometimes even the whole business.

How to Fix It

‍To fix this, you need to be good at two things: making the plan and making the plan work. It’s like knowing what to cook and how to cook it. You need the right tools and the right steps to follow.

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Key Takeaways

• ‍Clear Focus: Maintaining a sharp focus on current market demands is essential for the success of any business strategy.
• Resource Alignment: Aligning organizational resources and capabilities with the strategy ensures efficient and effective execution.
• Leverage Expertise: Utilizing the insights and tools from industry experts can greatly enhance a company's strategic execution.

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Learning from Business Strategy Execution Failures

Unfortunately, there are more stories about failures than there are about successful companies that executed a strategy successfully. However, it is important to note that like anything in business there is a way to win and that requires the empathy to understand that you need to collaborate with cross functional team members in a business in order to formulate, get buy in, communicate and execute a winning strategy. The leadership at companies small or large that miss these steps are sure to end in failure.

In short, having a great idea is just the start. Making that idea work is the real challenge. It’s like saying you’re going to build a house. That’s a great plan, but the real success is in actually building it, making sure it stands strong and looks good. So, let’s remember, it’s not just about the good ideas; it’s about making them happen!

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