A new survey of UK enterprises by Strategy Management Partners, reveals a stark contrast between the growth aspirations of these companies and their ability to execute effectively.
Only 18.4% of businesses achieve more than 80% of their aspirational growth goals within three years of setting them. Additionally, almost half (41.2%) of companies fail to achieve 60% or more of their stated targets in this timeframe, indicating a widespread struggle with consistent execution.
While growth remains a top priority, many UK businesses are falling short in execution and innovation. The research highlights significant strategic and operational gaps that hinder performance and the realisation of aspirational growth targets.
Key findings
One of the most significant findings from the research is the role of people in either enabling or impeding strategy execution. Over half of decision-makers (50.4%) identified talent and capability gaps as the primary barrier to effective strategy delivery. These gaps reflect a shortage of the right skills, insufficient capacity, lack of empowerment to execute the strategy effectively, and incentives not aligned to strategic priorities.
The study also found that despite widespread ambition, only 23.6% of large UK companies are embracing a truly innovative and disruptive mindset. The majority (61.20%) were found to only pursue innovation incrementally and/or when necessary, rather than proactively.
Only 46% of firms have a clearly measurable value gap between their current and desired future state —a key metric for aligning strategy with outcomes. This lack of clarity limits organisational focus and hinders agility.
However, the study also highlighted five critical drivers that businesses should follow to enable strategic execution success:
External macroeconomic factors are also stifling growth ambitions. UK business leaders cited ongoing economic instability (72%), disruptions in the global supply chain (76.4%), and challenges stemming from monetary policy—such as inflation, interest rate volatility, and exchange rate fluctuations (79.2%)—as major threats. Furthermore, the increasing cost of doing business, including tax burdens and compliance requirements, continues to constrain strategic flexibility according to 79.2% of business leaders.
Commenting on the results of the survey, Muibat Ijaiya, Partner at Strategy Management Partners said: “Overall, this research provides valuable insights into what UK enterprise leaders are experiencing in terms of executing growth strategies in a globally connected world. As businesses navigate this complex environment, a sharper focus on execution readiness, talent development, and data-driven performance monitoring will be essential to bridging the gap between ambition and achievement.”
A growth ambition refers to a company's aspirations to expand its market share, revenue, or overall business size within a specific timeframe.
Strategy execution is the process of implementing a company's strategic plan to achieve its goals and objectives effectively.
Talent gaps occur when an organization lacks the necessary skills or capabilities in its workforce to meet its strategic goals.
An innovative mindset is a way of thinking that encourages creativity, experimentation, and the pursuit of new ideas to drive progress and improvement.
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