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Recognized in Gartner® Market Guide for Retail Workforce Management Technology

Recognized in Gartner® Market Guide for Retail Workforce Management Technology

A manager checking his phone above the warehouse floor
Sara SiddeeqSep 15, 2026, 1:38:39 PM6 min read

The strategy–execution gap in WFM: why leadership decisions and frontline reality often diverge

The strategy–execution gap in WFM: why leadership decisions and frontline reality often diverge
9:34

Most workforce management strategies make perfect sense in the boardroom. Centralise scheduling. Give managers real-time visibility. Offer employees greater flexibility. Reduce the administrative burden on frontline leaders so they can spend more time coaching their teams.

Then the strategy reaches the frontline, and something gets lost.

The schedule is still being built in a spreadsheet on a Tuesday night. The manager who was meant to be freed up for coaching is fielding shift-swap requests over WhatsApp. The technology introduced to reduce administration has simply moved it somewhere less visible.

The strategy has not failed at the boardroom door. It has broken down somewhere between the fifth floor and the shop floor.

This is the strategy–execution gap in workforce management: the distance between WFM as leaders define it and WFM as managers and employees experience it every day. It is one of the most persistent challenges in frontline operations – and one of the hardest for individual leaders to see clearly.

That is because the gap is rarely caused by one person failing to do their job. More often, it is created by a system in which priorities, tools, and operating realities do not align.

A manager writing on sticky notes

 

A familiar gap that is difficult to diagnose

The challenge extends well beyond workforce management. McKinsey’s 2024–2025 Strategy Method survey of 416 senior executives found that only 21% of organisations’ strategies passed four or more of its Ten Tests of Strategy – a marked decline from 15 years earlier.

More revealingly, when McKinsey compared organisations that consistently execute well with those that do not, the greatest capability gap was not in strategy design. It was in mobilisation: translating strategic choices into the incentives, resources, and operating rhythms that enable people to act on them.

Workforce management is particularly exposed to this problem because it sits at the point where corporate intent meets hour-by-hour operational reality.

A cost-reduction strategy set at headquarters becomes a decision about who works Saturday’s late shift. A compliance strategy becomes a supervisor remembering to record a break during the busiest part of the day. A commitment to flexibility becomes a manager deciding whether they can approve a last-minute shift swap without leaving the team short.

There is no layer of abstraction left to absorb the difference between the plan and its execution. The gap appears immediately – on the frontline, every day.

 

Why the gap is structural – not a failure of frontline managers

Three forces consistently separate WFM strategy from frontline reality. None comes down to managers lacking capability or commitment.

1. Incentives point in different directions

Senior leaders are typically measured against strategic milestones: a platform rollout completed, a policy implemented, or an aggregate cost target achieved.

Frontline managers face a more immediate test: is today’s shift covered?

When those priorities compete, managers will understandably focus on keeping the operation running. That is the outcome for which they are most visibly and immediately accountable.

This tension has intensified as management layers have thinned. Gallup’s workplace research found that the average number of people reporting to a manager in the US rose to 12.1 in 2025, up from 10.9 the previous year and nearly 50% higher than in 2013. Gartner’s research into organisation design found that 75% of surveyed CHROs believed managers were overwhelmed by the growing scope of their responsibilities.

When managers are responsible for more people, more administration, and more strategic objectives – without any meaningful redesign of their working day – they will default to whatever keeps the shift running.

The problem is not that managers are resisting the strategy. It is that the organisation has not created the conditions in which they can deliver it.

A retail manager walking and talking

2. Managers are working without the tools the strategy assumes

WFM strategies often assume a level of real-time visibility, reliable data, and operational agility that does not exist at the point of execution.

The strategy calls for dynamic, demand-led scheduling. The manager has a spreadsheet, a paper rota, and a group chat.

Our research among 12,500 frontline workers across the US, UK, Germany, the Netherlands, Sweden, Finland, Norway, and Denmark found that 69% were dissatisfied with the technology their employer provided. Schedule communication was frequently fragmented across apps, text messages, and word of mouth rather than managed through a single source of truth.

This mismatch – between the infrastructure leaders believe is in place and the tools managers can actually use – is where strategic intent quietly stalls.

The consequences become more serious when regulation raises the cost of getting workforce management wrong.

In Germany, a 2022 Federal Labour Court ruling, reinforced by moves towards mandatory electronic time recording, means employers must record the start, end, and duration of each employee’s working day, with potential fines of up to €15,000 per violation. A strategy built around compliance confidence cannot be executed reliably by a manager recording hours on paper.

In the Netherlands, tightening rules governing flexible contracts, including the proposed More Security for Flex Workers Act, are reducing the staffing flexibility on which many operators have traditionally relied. Dutch central bank data shows that more than half of staffing firms were already reporting shortages of both permanent and temporary workers by the end of 2025.

In both cases, leadership may have chosen the right strategic direction. What is missing is the management-layer capability to translate it into consistent daily decisions.

3. Strategy is designed without enough operational reality in the room

WFM strategies are often shaped by aggregate measures: turnover, labour cost as a percentage of revenue, absence levels, and engagement scores.

These figures matter, but they cannot fully explain what happens during an understaffed Saturday shift, why managers override labour forecasts, or why employees continue arranging shift swaps outside the official system.

That distance from frontline reality has consequences. CIPD’s Good Work Index 2025, based on responses from almost 5,000 UK workers, found that only 37% felt managers genuinely allowed employees or their representatives to influence final decisions. Even where organisations seek frontline input, it does not always reach the point at which strategic choices are made.

The implications vary by sector.

In US limited-service restaurants, Deloitte reports that hourly employee turnover reached 135% in the third quarter of 2024, while management turnover rose to 55%, up from 45% in 2019. At that level of churn, any workforce strategy dependent on manager tenure or institutional knowledge is structurally fragile.

Across the Nordics, Nordregio’s State of the Nordic Region highlights growing labour shortages, particularly in health and social care. A workforce strategy designed around a fully staffed operation may therefore be addressing a reality that no longer exists. Its assumptions about labour availability can be outdated before the strategy ever reaches the frontline.

A healthcare worker being comforted by a colleague

 

What it takes to close the gap

The strategy–execution gap cannot be closed with a better strategy document, a new mission statement, or another tool added to an unchanged process.

It requires three elements to move together:

  • Strategy shaped by operational reality, with frontline insight treated as an input rather than an afterthought.
  • Technology that gives managers the visibility, intelligence, and control to act on strategic priorities at the point of the shift.
  • Incentives and operating rhythms that make managers’ immediate responsibilities compatible with the outcomes leadership wants to achieve.

Gartner’s 2026 Market Guide for Retail Workforce Management Technology reports that 67% of CIOs plan to increase investment in associate-facing GenAI assistants in 2026. It also predicts that, by 2028, AI-enabled skills management will autonomously fill 40% of open shifts.

But investment and automation alone will not close the strategy–execution gap. The organisations that succeed will be those that treat WFM as a strategic system connecting the boardroom to the shift floor – not simply as a scheduling tool sitting beneath a strategy developed without frontline execution in mind.

The distance between strategic intent and frontline reality is also one of the clearest indicators of an organisation’s WFM maturity. The wider the gap, the earlier the organisation is likely to be in its journey.

Closing it is not about finding a single fix. It is about building the alignment, visibility, and management capability that allow strategy and execution to operate as one system.

 

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Sara Siddeeq

Senior Content Manager | Global Brand & Content