Abstract

CANDIDO, Carlos  and  SANTOS, Sérgio. Rate of failure in strategy implementation: a controversial issue. Rev. Portuguesa e Brasileira de Gestão [online]. 2009, vol.8, n.2, pp.10-18. ISSN 1645-4464.

Several researchers claim that 70 to 90 percent of strategic initiatives fail. These claims have often been used to propose new management tools and to dismiss others. As we intend to show, although these claims have had a significant impact in management practice and theory, they are, however, controversial. We aim to clarify why this is the case and to emphasise that any attempts to produce a generic estimate of the rate of failure based on the current state of affairs are of little practical value. Based on an extensive review of the literature, we conclude that whilst it is widely acknowledged that the implementation of a new strategy can be a difficult task, no one seems to really know what the true rate of implementation failure is. Much of this uncertainty is due to the fact that some of the estimates presented in the literature are based on evidence that is outdated, fragmentary, fragile, or just absent. Careful consideration is therefore advised before using these estimates to promote changes in the theory and/or practice of strategic management.

Keywords : Business Policy; Business Strategy; Failure; Strategy Implementation; Success.

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