Lever 4 of 7 · Strategy Execution by Design

Governance and accountability

Every forum in your governance system can be well run, and execution can still break. It breaks in the seams between them, where the dependencies and the trade-offs live and nobody owns the join.

What this lever is

Governance and accountability is the fourth of seven levers in the Strategy Execution by Design Maturity Model. It is whether governance has been deliberately designed for the strategy you are running now, whether decision rights are explicit, whether leaders have genuine line of sight into execution reality, whether the layers of governance connect, and whether escalation ends in a course correction rather than a conversation.

What falls within this lever

What it looks like in practice

When this lever is strong
  • Every forum has a stated purpose and a decision it owns.
  • People at tier three make tier three calls without checking upward.
  • Bad news reaches leaders while options still exist.
  • Dependencies surface while there is still time to resequence.
  • Escalations end in a decision, a re-baseline and an owner.
When this lever is weak
  • Forums accumulated over time and nobody has removed one.
  • Decisions drift to the most senior person in the room.
  • The pack is green and the programme is fragile.
  • Each forum runs well and the seams between them fail.
  • Issues arrive too late, or everything arrives at once.

Governance should accelerate execution, not absorb it

Most governance systems were not designed. They accumulated. A forum was added when a delivery risk looked high. Another was created to improve visibility. Before long there is a collection of forums that each feel important on their own and do not create coherence together.

The effect is that execution starts to drag long before anyone names it. Leaders spend their days in back-to-back meetings. Decisions take too long. Priorities conflict across the business. Teams operate with half the context they need.

It is quick to read that as a people problem. In my experience it is almost always the architecture wrapped around the people. When governance is engineered rather than accumulated, execution speeds up without anyone working harder.

Every forum can be well run and the system still fails, because nobody owns the seams between them.Observation from practice

Five elements determine whether governance works as an execution system or becomes the thing execution has to survive.

1

Governance architecture: designed, or accumulated?

Governance architecture is the structural backbone that decides whether your strategy accelerates or gets stuck. It is the set of forums that exist, the reason each one exists, and how they connect up and down the chain.

The test is whether you can explain why each forum is there. In most organisations at least one exists because of a risk that was live three years ago, and nobody has retired it. Each addition looked sensible on the day. The accumulation is what costs you.

When governance is not engineered it becomes a constraint rather than an enabler. Decisions get made in isolation and land at the wrong level. Leaders act without seeing the whole system. Information moves at the pace of the reporting cycle rather than the pace of the strategy.

Organisations that do this well design governance on purpose. They are clear about which forums exist and why, which decisions sit where, what pace the strategy requires, where risk is managed, and how information flows so people can act with confidence. And they make sure leaders have the skills to govern, not just to attend.

This is the distinction between governance as compliance and governance as an execution system. Compliance governance asks whether the process was followed. Execution governance asks whether the organisation can still make the calls the strategy needs, at the speed it needs them.

What leaders should consider
  • List every governance forum and write down the decision each one owns.
  • Retire any forum that cannot name a decision it makes.
  • Set the cadence from what the strategy needs, not from the calendar.
  • Check that leaders have been equipped to govern, not just to turn up.
Field notesWhat deliberately designed governance looks like
  1. Which forums exist, and why. Every forum has a stated purpose that someone could defend.
  2. How each forum connects up and down the chain, so decisions have a path.
  3. Which decisions sit where. Explicit, not inferred from who happens to be in the room.
  4. What pace is required to match the strategy, rather than inherited meeting rhythms.
  5. Where risk is managed, and by whom, so it is not everywhere and nowhere.
  6. How information flows so staff can act with confidence between forums.
  7. Whether leaders can govern. The capability to chair, challenge and decide is a skill, not a title.
2

Decision rights: who is actually allowed to decide?

Decision making is the wiring that runs through execution. It works when you have deliberately designed where decisions sit and who owns the call. Most organisations never define, communicate or monitor it, and then wonder why execution slows.

When the decision system is not designed, the organisation improvises. Teams do not simply slow down. They start guessing, escalating, and reworking decisions that should have been clean. Decisions drift to the safest place, the biggest meeting, or the most senior person in it.

I watched this on a major enterprise systems programme. The organisation valued collaboration, so it ran a weekly steering committee with most of the executive team, regularly pulling tier three leaders into the room. It looked robust. It also trained the organisation to escalate. Because key decisions had never been agreed up front, everything defaulted to the committee, including decisions those tier three leaders were entirely capable of making.

The hidden cost was not meeting time. Teams spent more time explaining and justifying decisions than designing and delivering. Ownership blurred. Decision velocity dropped. Trust eroded.

The design principle is simple. Some decisions need a forum where leaders trade off cross-functional impacts. Others need a single owner with the remit and the expertise to make the call. Losing that distinction is what turns governance into a queue.

Escalation is not a culture problem. It is what capable people do when they are not certain they are allowed to decide. The fix is not encouragement, it is design.

What leaders should consider
  • Name the decisions that actually matter, then say where each one sits.
  • Separate decisions that need a forum from decisions that need an owner.
  • Communicate decision rights as deliberately as you communicate the strategy.
  • Watch where decisions actually get made, not where the framework says they should.
Field notesHow to design decision rights that hold
  1. Identify the decisions that matter. Not every decision needs designing, but the consequential ones do.
  2. Decide forum or owner. Cross-functional trade-off goes to a forum. Everything else gets a named owner.
  3. Push authority to the level with the context. The people closest to the work usually have it.
  4. Make the boundaries explicit, so people know what they can settle without checking.
  5. Monitor where decisions land. Drift upward is the earliest warning sign you will get.
  6. Stop re-litigating. A decision reopened in a bigger room teaches everyone to wait for the bigger room.
3

Execution visibility: is the pack telling you the truth?

Once the machine is running, leaders need line of sight to govern well. Not more updates. Enough clarity, and enough trust in the integrity of the information, to make good calls early rather than late.

Four things need to be visible. Pace, meaning what decisions are needed next and what is slowing momentum. Risk, meaning what is exposed and whether it is being managed. Value, meaning what trade-offs are being made and whether they are compromising the outcome. And truth, meaning whether what leaders are hearing reflects what is actually happening.

That does not appear in a pack by itself. Early in my career I watched an enterprise CRM project stay green until user acceptance testing. The sponsor was engaged and well intentioned, but updates flowed almost entirely through the project manager, and the steering committee rarely heard from the business owner or the leads closest to the affected processes. Requirements had never been locked down and end-to-end processes had not been validated. Because that reality did not travel up through the governance mechanisms, it did not surface as a risk. It surfaced later as defects.

By the time testing started it was not a handful of bugs, it was fundamental workflow failure. The programme went red quickly, not because people were not working hard, but because leaders had not had line of sight early enough to challenge the assumptions.

Governance that reports is easy to build. Governance that decides, and that surfaces bad news early enough to act on, has to be designed that way from the start.

A useful standard: nothing comes to a forum unless it is decision-ready. That means a clear recommendation, the options considered, the trade-offs, the unknowns, and what would change the call.

What leaders should consider
  • Ask what decision each report is meant to inform. If there is not one, stop producing it.
  • Build forums to decide rather than to update.
  • Create a route for leaders to hear directly from delivery leads and business owners.
  • Treat a permanently green pack as a signal to look harder, not a reason to relax.
Field notesThree mechanisms that create real line of sight
  1. Decision-grade reporting that surfaces evidence, trade-offs and unknowns, not just milestones.
  2. Forums designed to decide, with the agenda built around the few calls that matter.
  3. Direct connection to reality, where leaders step outside the pack to validate assumptions and hear weak signals early.
4

Cross-functional alignment: who owns the seams?

Most people do not experience governance as a system. They experience their slice of it: a project steering committee, a programme board, a portfolio checkpoint, a functional leadership forum.

Each of those can be well run in isolation while execution breaks in the seams between them, where dependencies, trade-offs and decision pathways cross boundaries. This came through strongly in my research. Leaders described how limited their visibility was beyond their own forums, and how the cost shows up later as rework, slow decisions, and escalations that feel unavoidable.

Interlocks are the answer, and they are not extra meetings. They are the minimum touchpoints and rules that connect the governance system, surfacing cross-functional dependencies early and keeping them visible as the work moves.

They operate at two levels. At governance level, leaders surface and route enterprise dependencies, priorities and trade-offs, set decision boundaries, and track what has to be resolved outside the forum. At delivery level, teams solve sequencing, capacity and dependency tension themselves, and elevate only what genuinely needs enterprise judgement.

In one organisation we ran both: a cross-functional leadership forum that prioritised the roadmap and managed interlocks across functions, and delivery-level planning where teams mapped dependencies, flagged decision points and exposed constraints early. The result was not more alignment. It was faster execution, with fewer surprises and cleaner decisions, because leaders could see what was being managed between the forums.

The failure mode here is subtle, because nothing looks broken. Every forum has an owner, an agenda and minutes. The gaps between them have none of those things, and that is where the delay accumulates.

What leaders should consider
  • Map where your governance layers are supposed to connect, and who owns each join.
  • Surface dependencies while resequencing is still an option.
  • Name trade-offs explicitly. Unnamed trade-offs still happen, just later and more expensively.
  • Keep interlocks light enough that people actually use them.
Field notesThree shifts you see when interlocks are working
  1. Dependencies surface early, while you still have options to resequence, reassign or make a call.
  2. Trade-offs are explicit, because if they are not named they happen anyway, late and at cost.
  3. Escalation is deliberate. Teams resolve what they can at the lowest responsible level, and the steering committee handles genuine enterprise calls rather than day-to-day dependency friction.
5

Escalation and resolution: does it end in a reset?

Escalation tells you the truth about execution. In strong environments it is normal, early and useful, and it protects value. That only works when decision rights are clear and escalation thresholds are explicit, so teams know what to resolve and what genuinely needs enterprise judgement.

In weaker environments teams swing to extremes. They sit on issues until they are urgent, or they escalate everything and call it governance. Both are expensive.

This came through continually in my research. The pain was not the escalation itself, it was the pattern. Leaders either found out late or were flooded with noise, and by the time an issue arrived the options had already narrowed.

Healthy escalation has one job: to surface drift early enough to reset course. If an escalation does not end in a decision, a re-baseline, a named owner and an updated guardrail, it was not an escalation. It was venting, and the same issue will climb again next month.

Escalation patterns are not a behaviour problem either. They are what people do when thresholds were never set, so nobody knows what they are allowed to settle.

The question worth asking your leadership team is deliberately uncomfortable: do issues reach you too late, or do they reach you too often? Both answers point at the same missing design.

What leaders should consider
  • Set explicit thresholds for what gets resolved locally and what escalates.
  • Require every escalation to arrive with a recommendation, not just a problem.
  • Close every escalation with a decision, a re-baseline and an owner.
  • Update the guardrail afterwards, so the same issue does not keep climbing.
Field notesWhat healthy escalation requires
  1. Clear thresholds, so teams know what they are expected to resolve themselves.
  2. Early timing, while there are still options rather than only consequences.
  3. A recommendation attached, so the forum is deciding rather than discovering.
  4. A decision at the end, not a discussion that adjourns.
  5. A re-baseline and an owner, so the reset is real.
  6. An updated guardrail, so the next instance is handled lower down.

Bringing it together

These five elements fail as a chain, and they fail in order.

Architecture without decision rights gives you well-designed forums that still decide everything at the top. Decision rights without visibility gives you empowered people acting on information that is already stale. Visibility without interlocks gives every forum a clear view of its own slice and nobody a view of the joins. And all four without healthy escalation means the drift you have carefully made visible still arrives too late to do anything about.

The pattern I see most often is organisations treating this as a meetings problem. They redesign the pack, add a forum, tighten the template, and wonder why the pace has not changed. The pack was never the constraint. The constraint was that nobody had decided where decisions sit, so they all travelled upward, and the system quietly optimised for explaining rather than deciding.

Governance is not the paperwork around execution. It is the mechanism by which an organisation makes the calls its strategy depends on, at the speed the strategy needs.

Where to start

Take one strategic priority and five questions to your leadership team.

Five questions
  1. Can every forum in the chain name the decision it owns? If not, governance architecture is the issue.
  2. Can a tier three leader name a decision they are allowed to make without checking upward? If not, decision rights is the issue.
  3. When did a leader last hear something uncomfortable early enough to act on it? If nothing comes to mind, execution visibility is the issue.
  4. Where do your governance layers connect, and who owns that join? If nobody does, cross-functional alignment is the issue.
  5. Did your last escalation end in a decision, a re-baseline and an owner? If not, escalation and resolution is the issue.

If those answers come easily, the system is working. If they do not, your people are not the problem. They are making sensible choices inside a structure that has never told them what they are allowed to decide.

Not sure which of the seven conditions is holding your execution back?

The Strategy Execution Maturity Model Assessment scores your organisation across all seven levers.

Take the assessment → See the full framework

Written by Rebecca Reti, strategy and execution consultant working with boards and executive teams across Australia and New Zealand. Her research on strategy execution in large firms was completed through Massey University in 2022.

References drawn upon for Lever 4
  1. Reti, R. (2022). Maximising firm performance through strategy execution. Massey University.
  2. Sull, D., Homkes, R., & Sull, C. (2015). Why strategy execution unravels, and what to do about it. Harvard Business Review, 93(3), 57–66.
  3. Rogers, P., & Blenko, M. (2006). Who has the D? How clear decision roles enhance organizational performance. Harvard Business Review, 84(1), 52–61.
  4. Mankins, M., & Steele, R. (2005). Turning great strategy into great performance. Harvard Business Review, 83(7), 64–72.