{"id":8680,"date":"2026-03-27T13:29:00","date_gmt":"2026-03-27T18:29:00","guid":{"rendered":"https:\/\/www.mhisolutionsmag.com\/?p=8680"},"modified":"2026-03-27T08:07:26","modified_gmt":"2026-03-27T13:07:26","slug":"turning-strategy-into-results-the-ai-advantage","status":"publish","type":"post","link":"https:\/\/www.mhisolutionsmag.com\/index.php\/2026\/03\/27\/turning-strategy-into-results-the-ai-advantage\/","title":{"rendered":"Turning Strategy Into Results: The AI Advantage"},"content":{"rendered":"<div class=\"htmlBody article_div\">\n<h4 class=\"roofHeader\">Building high\u2011performing supply chains and achieving other key business objectives starts with a clear strategic vision, but even the most brilliant strategies often fail due to poor execution, stranding organizations short of their goals and leaving billions in unrealized value on the table. Experts see potential in leveraging artificial intelligence to overcome barriers to implementing strategy and close the strategy\u2011execution gap.<\/h4>\n<div>\u00a0<\/div>\n<div class=\"byline\">BY <span class=\"author-name\">DAVID H. COBURN<\/span><\/div>\n<figure class=\"picture\"><img decoding=\"async\" src=\"https:\/\/www.mhisolutionsmag.com\/wp-content\/uploads\/2026\/03\/020.jpg\" alt=\"turning strategy into results\" \/>\n<figcaption><\/figcaption>\n<\/figure>\n<p><strong><span class=\"dropCap\">W<\/span>HEN FORMER WALMART<\/strong> CEO Doug McMillon announced the retail behemoth had used a generative artificial intelligence (AI) tool to optimize its search function, making it faster and easier for online shoppers to find what they\u2019re looking for, it was just another example of the company\u2019s success in bringing a core strategic vision to life.<\/p>\n<p>The generative AI project, which, along with others, has juiced e\u2011commerce sales by 20% annually since 2024, was the latest in a string of initiatives the world\u2019s largest retailer has implemented across its supply chain to deliver on its high\u2011level strategy of driving growth by enhancing the customer experience.<\/p>\n<p>Walmart\u2019s consistent growth over six decades provides a resounding answer to the question posed rhetorically by the author of a circa\u20111995 case study: &#8220;Why is Wal\u2011Mart so successful? Is it Good Strategy or Good Strategy Implementation?&#8221;<\/p>\n<p>Few observers today would disagree with the author\u2019s conclusion that the company has succeeded beyond Sam Walton\u2019s dreams &#8220;not only because it makes sound strategic management decisions but also for its innovative implementation of those strategic decisions.&#8221;<\/p>\n<p>Indeed, Walmart has mastered what, for many companies, is a daunting challenge: not just developing a winning strategy but executing it successfully. Most companies fall short of their broader objectives not because their strategic vision is flawed, but because they fail to turn strategy into action.<\/p>\n<p>Cesare Mainardi, former CEO of Booz &amp; Company and now an adjunct professor of strategy at Northwestern University\u2019s Kellogg School of Management, uses the term &#8220;coherence&#8221; to describe alignment between strategy and execution. In his view, companies achieve coherence by leveraging capabilities that differentiate them from competitors and by focusing execution relentlessly on strengthening those capabilities to create sustained competitive advantage.<\/p>\n<p>&#8220;Companies that connect what they promise\u2014their value proposition to customers\u2014to what they do better than their competition outperform and win,&#8221; Mainardi said. &#8220;In short, they succeed because they are far more coherent than their competitors. This is the \u2018what\u2019 of a successful strategy. The \u2018how\u2019 requires connecting strategy to execution, and this is where most companies fail.&#8221;<\/p>\n<p>The strategy\u2011execution gap is real, and its impact on organizations\u2019 competitiveness and financial strength is substantial. Statistics drawn from a range of strategy and execution studies paint a picture of the scope of the problem:<\/p>\n<ul>\n<li>Sixty\u2011seven percent of companies say their strategies fail due to poor execution, according to the Balanced Scorecard Institute (BSI).<\/li>\n<li>According to the Brightline Project Management Institute, 90% of senior executives admit they fail to reach all their strategic goals due to weak implementation.<\/li>\n<li>Organizations lose 10% of annual revenue due to mismanaged execution of strategic initiatives, according to the Project Management Institute.<\/li>\n<li>Harvard Business Review (HBR) found that 40% of strategic value is lost due to breakdowns in execution.<\/li>\n<\/ul>\n<p>But there\u2019s hope: Just as AI is enabling innovations in tactical supply chain and logistics functions that support broader strategic objectives\u2014such as demand planning, inventory\/warehouse management and procurement\/route optimization\u2014strategic management experts see a wide range of opportunities for AI to help organizations overcome implementation roadblocks. In doing so, AI can help close the strategy\u2011execution gap.<\/p>\n<h4 tabindex=\"0\">STRATEGIC CLARITY AS A STARTING POINT<\/h4>\n<p>AI tools can synthesize vast datasets to help leaders clarify strategic direction, provide real\u2011time insights for faster decision\u2011making and improve communication of higher\u2011level goals and objectives across the organization. In addition, they can foster cross\u2011functional collaboration and alignment on objectives through advanced supply chain orchestration while enhancing the effectiveness of strategy management tools and methodologies such as the Balanced Scorecard and Lean Six Sigma.<\/p>\n<p>Strategic clarity in the supply chain is often compromised by attempts to serve competing goals that exacerbate the gap between strategy and execution, Mainardi said. Companies pursue growth only to get trapped on a growth treadmill, strive for functional excellence and become world\u2011class at everything, but master nothing, and reorganize repeatedly in the name of change. They go lean across the board and end up cutting not just the fat but also the bone, while efforts to become agile and resilient often devolve into reactive decision\u2011making that pulls the organization away from its strategy.<\/p>\n<p>&#8220;All of these tendencies show up vividly in supply chains, where pursuing every objective at once (cost, risk, resilience, sustainability) often produces the incoherence leaders should avoid,&#8221; Mainardi said.<\/p>\n<p>David Floyd, principal consultant for consulting firm BrightOrg Services, sees potential for AI to improve strategic clarity. He said the technology helps leaders synthesize the vast amount of data they need to make sound decisions when developing strategies\u2014and also to mitigate the bias that frequently colors those decisions.<\/p>\n<p>&#8220;At the end of the day, strategy is about making choices, and there\u2019s only so much information that a person or a team can process mentally to make those different choices,&#8221; Floyd said. &#8220;An AI tool can take in an immense quantity of complexity information and then be a thought partner [in making strategic choices]in a more objective way.&#8221;<\/p>\n<p>Leaders will ultimately make decisions based on their own experience and knowledge, their understanding of their teams and human intuition. While AI tools do not replace these, the technology\u2019s ability to help hone strategy and accelerate its development will benefit organizations significantly, Floyd said.<\/p>\n<p>Mainardi envisions AI having widespread applications in aligning strategy and execution, but achieving strategic clarity is the non\u2011negotiable starting point for any organization that hopes to close the strategy\u2011execution gap.<\/p>\n<p>&#8220;Supply chains and value chains are messy, complicated combinations of people, companies, technologies, processes and knowledge that take a long time to perfect, and they need to be surgically designed to support the strategic intent rather than being buffeted by changing objectives every few years,&#8221; Mainardi said. &#8220;When leaders are clear\u2011minded about their strategy and the supply chain they need to build, they can focus AI on supporting design choices, monitoring execution and reinforcing coherence over time.&#8221;<\/p>\n<h4 tabindex=\"0\">ENHANCING EXISTING TOOLS<\/h4>\n<p>Strategy management frameworks such as the Balanced Scorecard\u2014which provides organizations with a way to evaluate performance on strategic initiatives across four key perspectives, including financial, customer, internal processes and learning and growth\u2014already are widely used across industries and represent a major opportunity for companies to benefit from AI\u2011driven enhancements.<\/p>\n<p>Walmart, for example, has used it in its Supply Chain Optimization Program to monitor and improve supply chain performance, reducing cycle times by 15% and inventory levels by 10%. In addition, Procter &amp; Gamble\u2019s Supply Chain Excellence Initiative implemented the Balanced Scorecard to enhance supply chain innovation, increase supply chain velocity by 25% and reduce costs by 10%, according to published reports.<\/p>\n<p>Together with project management methodologies like Agile that allow teams to pivot quickly and tweak execution in the face of rapidly changing conditions, AI is contributing to a &#8220;transformational shift&#8221; in how companies implement strategy to an &#8220;adaptive execution&#8221; model, according to Adam Asch, senior consulting associate for Strategy Management Group (SMG), the parent company of BSI.<\/p>\n<p>Asch describes three ways AI is &#8220;supercharging&#8221; strategy execution in a blog for SMG\u2019s website:<\/p>\n<ul>\n<li>Real\u2011time performance dashboards: Instead of relying on quarterly reports or manual spreadsheets, AI automates the collection and analysis of performance data. Leaders can see at a glance how objectives are progressing, which initiatives are lagging and where corrective action is needed before it\u2019s too late.<\/li>\n<li>Predictive analytics for risk and opportunity: AI doesn\u2019t just explain what happened; it helps predict what\u2019s next. Imagine knowing months in advance that a workforce capacity gap will hinder your growth initiative, or that shifting customer sentiment poses a threat to a strategic objective. With predictive analytics, strategy execution becomes proactive rather than reactive.<\/li>\n<li>Intelligent Objectives and Key Results (OKRs) and Balanced Scorecard alignment: One of the biggest challenges in execution is ensuring alignment across business units. AI can analyze objectives, detect redundancies and recommend opportunities for alignment. It becomes far easier to keep OKRs and Balanced Scorecard measures aligned with strategic themes and outcomes, thereby reducing wasted effort and maximizing impact, Asch wrote.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.mhisolutions-digital.com\/mhiq\/library\/item\/0226_volume_14__issue_2\/4330414\/\"><em>Click here to read the full article.<\/em><\/a><\/p>\n<\/div>\n\n\n<h6 class=\"wp-block-heading\">INKOLY\/<a href=\"http:\/\/SHUTTERSTOCK.COM\">SHUTTERSTOCK.COM<\/a><\/h6>\n","protected":false},"excerpt":{"rendered":"<p>Building high\u2011performing supply chains and achieving other key business objectives starts with a clear strategic vision, but even the most brilliant strategies often fail due to poor execution, stranding organizations short of their goals and leaving billions in unrealized value on the table. Experts see potential in leveraging artificial intelligence to overcome barriers to implementing &#8230;<\/p>\n","protected":false},"author":40,"featured_media":8681,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,5,10,13],"tags":[173,428,2097,442,1907,4097,466,441],"class_list":["post-8680","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured-article","category-features","category-industry-trends","category-technology","tag-ai","tag-artificial-intelligence","tag-emerging-technology","tag-mhi-solutions","tag-mhisolutionsmag","tag-strategyexecution-gap","tag-supply-chain","tag-supply-chain-innovation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Turning Strategy Into Results: The AI Advantage - MHI Solutions<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.mhisolutions-digital.com\/mhiq\/library\/item\/0226_volume_14__issue_2\/4330414\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Turning Strategy Into Results: The AI Advantage - MHI Solutions\" \/>\n<meta property=\"og:description\" content=\"Building high\u2011performing supply chains and achieving other key business objectives starts with a clear strategic vision, but even the most brilliant strategies often fail due to poor execution, stranding organizations short of their goals and leaving billions in unrealized value on the table. 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