Identity first: The key to lasting strategic impact

Many of us have heard the numbers… 60-70% of all strategies fail. And if we go all the way back to Harvard Business School Professor Robert Kaplan’s book, The Balanced Scorecard: Translating Strategy into Action, up to 90% of organisations fail to execute their strategies successfully. Regardless of the actual number, it is terrifying that so many strategies end up being unsuccessful.
In today’s competitive landscape, organisations face constant pressure to evolve and adapt rapidly. Amid the drive for growth, one crucial step is often overlooked: defining the company’s identity before developing or refining strategy. For the board and C-suite alike, prioritising identity can be transformative, positioning the organisation for long-term success rather than quick wins. Here’s our take on why an identity-first approach makes all the difference.

Change happens in the process

Often, strategy work is done by a small group from the C-suite, sometimes accompanied by external consultants. This is of course done for a reason. However, can we begin the strategic considerations in another manner? By starting out with defining the identity all employees will be involved – right from the start. By keeping the organisation ‘in the loop’, there is a higher chance of internal buy-in, as the strategy work is built upon something they recognise and have influenced. What we have also experienced from these projects is, that throughout the identity work, the internal language changes. Those participating in workshops begin to see the organisation through a ‘different lens’ and thus becomes ambassadors for the work to come. The identity project results in a condensed, easy-to-remember tool that enables everyone in the company to communicate its business target, purpose, and how to achieve goals while staying true to its values – all essential cornerstones of a well-defined strategy.

Identity as the anchor for decision-making

An organisation’s identity isn’t just its brand or culture; it’s the core essence – the ‘Why’, ‘How’ and ‘What’ of the company. Defining this enables the management team to align the entire organisation around a shared purpose, a business target and a long-term vision. An established identity provides a stronger sense of belonging and a common language across functions, fostering cohesive decision-making. When the identity is defined, strategic initiatives are easier to assess and prioritise, ensuring that all efforts are aligned with the company’s true nature.

“We have become a completely aligned management team, which has erased all major discussions on priorities and directions. We have established a shared reference and foundation for the years to come. Many strategic discussions and decisions were easier after having defined the Identity Compass. Establishing our playing field from the beginning gave us a great start as a new management team”.

Stina Glavind, FDM

Enhancing strategic focus

With so many trends and data points to consider, focus is paramount. Identity acts as a filter that helps executives evaluate which market trends and growth opportunities align with the company’s core DNA, focus and purpose. This approach not only prevents resource dilution but also strengthens market positioning. Instead of chasing every opportunity, an identity-led strategy allows the company or organisation to pursue initiatives that feel authentically aligned and, thus, more sustainable.

Building true stakeholder relationships

For many companies, relationships with stakeholders – clients, investors, and employees—are built on trust and reliability. An identity-driven approach fosters authenticity, making it clear that the company operates with a stable foundation and a genuine commitment to its core values. When identity leads, external stakeholders experience consistency in brand interactions, increasing loyalty and credibility. For employees, a clear identity strengthens engagement and retention, as they can see and feel alignment between organisational actions and stated values.

Enabling agility & creating sustainable growth

While strategies must adapt to shifting markets, a well-defined identity provides a stable framework, enabling organisations to adapt strategically without losing their essence and guiding resilient transformation.

Growth must be about more than numbers. Identity-driven growth ensures that expansion aligns with what makes the company unique and competitive. This approach ensures that strategic changes – whether entering new markets, acquiring new companies, launching products, or restructuring – are true to the core DNA of the company. This alignment not only makes growth sustainable but also helps to differentiate in a competitive market.

” With a defined Identity, the output of the strategy process is more long-term focused, more visionary and ambitious, and it stands on a stronger foundation.”

Stina Glavind, FDM

The Identity-Strategy Nexus

Professor Majken Schultz’s research supports the synergy between identity and strategy, guiding organisations through change without losing the core. In the ‘identity-strategy nexus‘ concept, she captures the dynamic interplay as a valuable framework for navigating complex challenges. Schultz argues that identity serves as a strategic asset, providing coherence and adaptability when aligned with evolving strategies.

For leaders, this means viewing identity as an ongoing reference point that informs each strategic decision, especially when responding to external pressures or pursuing ambitious goals. By aligning identity with strategy, organisations can ensure that their growth and transformation efforts are both authentic and sustainable. This approach enables companies and organisations to stay rooted in their unique values and heritage while adapting strategies to meet emerging challenges, ensuring that the company remains both resilient and relevant.

Conclusion: Identity should serve as the foundation for strategy development

An identity-first approach doesn’t pro-long the strategy development; it amplifies it by acting as a guide – a compass. By defining and embracing identity, leaders can shape adaptive, sustainable strategies that resonate with stakeholders and secure the organisation’s lasting success.