Why Good Strategies Go Bad—and What You Can Do About It

Strategies fade. But they don't have to.

Ever launched a strategy full of energy and insight, only to find that six months down the line, it feels like no one remembers what it was really about?

You're not alone. Strategy dilution is real. And it's surprisingly common.

But why does it happen? And more importantly, what can you do to prevent it?

Three Root Causes of Strategy Dilution

External Pressures Undermine Differentiation

Sometimes, external changes eat away at your strategy:

• Competition & Mimicry: Patagonia pioneered sustainability. But when everyone else jumps on the same trend, it no longer feels unique.

• Shifting Preferences: Starbucks built its brand on being a 'third place' between home and work. Then customers demanded convenience, and mobile orders took over.

• Short-Termism: The pressure to hit quarterly numbers often leads to compromises that sacrifice long-term goals for short-term wins.

Internal Factors Weaken Focus

Other times, dilution comes from within:

• Buzzwords Without Backbone: Many jumped on Balanced Scorecards or OKRs without understanding them. When results didn't come, the method was blamed instead of the implementation.

• Speed Over Strategy: Projects start off aligned to strategy. But the pressure to deliver on time and budget means strategic outcomes are often sacrificed.

• Energy Fades: Initial enthusiasm gives way to business-as-usual firefighting. "Shiny new things" distract from the core mission.

Poorly Formulated or Communicated Strategy

Strategy is a human system. And humans adapt systems for their own benefit.

When strategies aren't clear or well-communicated, people fill in the blanks. Sometimes they guess right. Sometimes they don't.

Worse, organisations:

• Set targets with no plan (e.g., ESG goals without a delivery roadmap).

• Stick with outdated plans due to sunk costs or fear of challenging past decisions.

• Allow power dynamics and misaligned incentives to warp implementation.

What Can You Do to Stop Strategy Dilution?

Dilution is natural. But it's not inevitable. Here's how to fight back:

🔄 Make Strategy a Dynamic Process

Your strategy isn't a document. It's an hypothesis.

It should evolve based on new data, new challenges, and ongoing execution.

✉️ Pro Tip: Run strategy reviews at least quarterly. Update your research. Track deviations. Adjust as needed—without blame.

🗱 Engage Broadly Across the Organisation

Don't lock strategy in the C-suite. The more people involved, the stronger the commitment.

• Appoint Strategy Champions for key areas.

• Invite cross-functional feedback early and often.

🧠 Use "Future-Back" Thinking

Start with your long-term vision. Work backward.

This approach avoids reacting blindly to today's problems with tactical fixes.

🛡 Build Self-Correcting Mechanisms

Good governance protects strategy:

• Three lines of defence: management, compliance, internal audit.

• External review: boards, audits, certifications.

• Transparent reporting: use a strategy scorecard.

📈 Incentivise for Strategic Outcomes

Don’t just reward what’s easy to measure. Reward what matters.

Balance input (effort), output (tasks), and outcomes (impact). A Balanced Scorecard helps.

Final Thought: Strategy vs. Human Nature

Even empires fall. So it's no surprise that business strategies lose clarity and power over time.

But the good news? You can plan for it:

👉 Build strategies that adapt to change.

👉 Design for resilience, not perfection.

👉 Accept that entropy is natural—but fight it anyway.

👉 Keep the energy alive.

Ready to protect your strategy from dilution?

StratNavApp.com is built to help you keep strategy dynamic, aligned, and evidence-based:

• Try it for general users

• Try it for C-suite

• Try it for consultants

• Try it for startups

Or book a call to discuss how we can support your strategy journey.