How to Prevent Strategy Fatigue

Cecily, the financial controller of a startup tech firm, describes what typically happens when her CEO returns from a conference. “She always comes back with a ‘great’ idea. And for a while we all put our shoulders to the wheel trying to implement it. But usually, her attention moves on to some other shiny new thing, and it fizzles out.”

Cecily is suffering from strategy fatigue—a phenomenon that’s on the rise. Recent studies show a notable increase in the frequency of strategy shifts. A survey of 1,284 executives revealed that 85 percent of senior leaders have observed “an explosive increase” in transformation projects over the past five years. Gartner reports that the typical organization has undertaken five major firmwide redirections in the past three years with nearly 75 percent of respondents expecting an increase in the number of major initiatives in the next three.

Strategy fatigue is not the same as change fatigue. Change fatigue is triggered by frequent alterations to workplace processes. It results from the sheer volume of changes in how people work. Strategy fatigue, in contrast, is caused by frequent and capricious shifts in an organization’s strategic direction. When leaders continually flipflop on priorities, employees struggle to understand the company’s purpose and objectives. This gives the impression that leaders don’t know what they’re doing. A lack of coherent progress leads to uncertainty and becomes confidence sapping. Strategy fatigue doesn’t discriminate—it can plague scrappy startups, corporate giants, and even public institutions. Let’s review two examples to illustrate: 

• A tech startup that keeps changing course
  The strategy-du-jour CEO in the opening story of a tech firm hinders performance because she changes course “at a moment’s notice,” chasing new ideas before the last one gained traction. Early on, this approach created buzz and energy. But over time, employees grew frustrated with the constant whiplash. One month, the priority was international expansion; the next it was pivoting to a new product—all without clear reasons. Productivity gave way to chaos. As one former team member noted, “the CEO hit a wall and so did the company.” This is strategy fatigue at its most acute: talented people rendered ineffective because leadership can’t stick to a direction long enough to reach a successful finish line.
• A fashion company that keeps flipflopping about its strategic direction
  Jennifer had been Senior Account Manager for a company that sells high-end women’s fashion clothing, bags, and accessories. She had been hired to “expand the business internationally via wholesale” (B2B) and had identified a critical but complicated path to make this happen. But after just two years she had left due to strategy fatigue brought on by her CEO’s flipflopping about corporate direction. When I asked why the CEO kept changing course, Jennifer said she “lacked a retail background, came from a large strategy consulting firm, and didn’t have industry knowledge.” The CEO had trouble staying on track with the plan and “changed the strategy every three months,” switching from international expansion to extra focus on retail (B2C), to opening more stores, to using a different brand for a certain product—to anything the board okayed. “The CEO was always looking for a silver bullet to deliver unrealistic financial results,” Jennifer observed, none of which worked. In the end, the CEO was fired a year after Jennifer left.

How to Fight Strategy Fatigue

Having too many initiatives in play or rapidly switching them for no apparent reason dilutes focus and produces strategy fatigue. So how do you combat this? For leaders, this can be something of a mind game. You need to channel reactive responses to shiny new ideas through sober testing processes:

Set up screening criteria

Create clear screening criteria to evaluate whether a new idea or project aligns with your strategic direction. Be willing to say “no” or defer ideas that don’t align. For example, on returning to Apple, Steve Jobs conducted a comprehensive review of the company’s product lineup eliminating 70 percent of existing models to refocus on core products. This decisive action streamlined operations and redirected employee focus towards innovation. The subsequent introduction of the iMac G3 exemplified this renewed focus, leading to significant commercial success and revitalizing Apple’s market position. At a time when proliferating opportunities in tech were flooding Silicon Valley, Jobs opted to stay on message by offering a limited range of simple, elegant, blockbuster products.

Use data-based scoring frameworks

Adopt a data-driven method to rank ideas by impact and feasibility. Techniques like weighted scoring or a value vs. effort matrix help quantify an idea’s business value against the resources it requires. Netflix for instance employs the Prioritization by Innovation Outcome (PIO) framework which leverages customer usage data, market research, and financial metrics to assess the potential impact of product innovations. Other organizations utilize frameworks like the RICE (Reach, Impact, Confidence, Effort) scoring model to systematically evaluate and prioritize products, ensuring that development efforts are focused on high-impact initiatives. By integrating structured methodologies, companies can avoid strategy fatigue and maintain a competitive edge in the market.

Employ proof-of-concept experiments

One reason companies fall into strategy fatigue is the fear of missing out on the Next Big Thing. So, they greenlight numerous projects hoping one succeeds. A smarter way to go is to adopt a proof-of-concept (PoC) approach—a small-scale test of an idea to validate its feasibility before major resources are committed. For instance, in software development, a PoC can help determine the viability of a new product by assessing its functionality and alignment with user needs, ensuring that only viable solutions progress to full-scale implementation. This approach has two benefits: it prevents the entire company from being dragged into every unproven venture, and it maintains an innovative culture by encouraging a test-and-learn mindset.

Maintain a single, visible pipeline

Keep an idea or project pipeline where all non-business-as-usual initiatives are listed and tracked to avoid strategy fatigue. This provides visibility into how many ideas are in play and avoids duplicate or competing efforts. Regularly review this list with senior leadership to cull lower-priority projects. When organizations map out all ongoing projects and change initiatives, they’re often shocked by the sheer number and must then stop or postpone some initiatives to let higher priorities succeed. Some companies adopt a rule like “one in, one out” for major projects to enforce this balance. Creating a project tracking system not only provides visibility for prioritizing projects it also fosters a culture of accountability and focus.

. . .

In an uncertain business environment, many organizations fall into the trap of adopting reactive strategies under the mistaken impression that the more initiatives, the more chances of success. But as you’ve seen, unchecked proliferation of strategic priorities carries a heavy cost: strategy fatigue can stealthily sap your organization’s strength, eroding employee engagement and blunting performance. You can avoid this outcome and restore your organization’s energy and purpose by applying judicious filters to new strategy initiatives. Your employees will thank you with renewed engagement. And your business will reap the rewards of considered and deliberate strategy that inspires rather than exhausts.