Why “Strategy-Only” Fails Small Teams: New Research from University of Michigan Ross MBAs
Sometimes, the most valuable business insights aren't the ones you go looking for—they are the ones that find you.
At Aetos, we pride ourselves on being data-driven. Recently, we engaged a team of MBA candidates from the University of Michigan’s Ross School of Business for a consulting term. Our mandate to them was broad and foundational: We asked them to map the current landscape of the "Fractional" executive industry and to conduct a deep dive into the complexities of business compliance for growing companies.
We were looking for market data, competitive analysis, and regulatory frameworks. We wanted to understand the "What" and the "Where" of the industry.
But during their primary research phase, the team uncovered something else entirely.
While conducting qualitative surveys and open-ended interviews with business leaders, a distinct pattern began to emerge unprompted. We hadn't asked the students to investigate why engagements fail, nor did we ask respondents to complain about previous consultants.
Yet, the feedback was there, loud and clear.
Hidden within the qualitative data was a recurring sentiment that exposed the single greatest friction point in our industry. It wasn't about price, and it wasn't about expertise. It was about bandwidth.
The Insight That Surfaced
One specific response from a business leader stopped us in our tracks. It perfectly articulated the frustrations we saw bubbling up in the qualitative data. When asked about their general experience with fractional support, the respondent wrote:
"...We have had a few people in fractional roles that delivered strategy but didn't help execute the strategy and because we are such a small team, we didn't have the bandwidth to fully execute."
This insight is powerful precisely because we weren't fishing for it.
The Ross team wasn't testing a hypothesis about execution gaps; they were simply listening to the market. And the market was saying that for small and mid-sized businesses (SMBs), good advice is becoming a commodity, but execution is becoming a scarcity.
This "uncovered" truth sheds light on why some fractional engagements, even those led by brilliant, experienced executives, ultimately fail to deliver ROI.
The Disconnect: Why Right Can Be Wrong
The survey respondent didn't say the strategy was bad. In fact, they implied the strategy was delivered successfully ("delivered strategy").
The failure happened in the hand-off.
This highlights a structural flaw in how many fractional executives operate. Many come from "Big Consulting" or large corporate backgrounds where their role was purely strategic. In those environments, you create the roadmap, and a massive army of middle managers and operational teams executes it.
When these leaders enter the fractional space, they often bring that "Advisory-Only" model with them. They look at a client’s problems, prescribe the correct solution, and assume the client has the resources to administer the cure.
But as the qualitative research revealed, small teams do not have "excess capacity."
When a fractional leader drops a strategic plan on a team that is already working at 110% capacity, they aren't helping; they are overwhelming. As the respondent noted, they simply "didn't have the bandwidth."
Compliance: The Dangerous Gap
This disconnect became even more apparent when the Ross team correlated this qualitative feedback with their research on compliance.
Compliance is an area where the "Strategy-Execution Gap" transitions from frustrating to dangerous. The MBA team’s research into regulatory requirements for growing companies showed that compliance is not a static state—it is a series of ongoing actions.
If a "Strategy-Only" consultant advises a business on compliance, they might deliver a gap analysis report. They might tell the business owner, "You are non-compliant with SOC 2 standards regarding data access."
The consultant has done their job. The strategy is correct.
But without execution support, the business owner is left with a "Known Risk." They know they are exposed, but they lack the internal bandwidth to configure the systems, write the policies, and train the staff to fix it.
The research suggests that in these scenarios, the business is often worse off than before—they are now anxious and paralyzed.
Aetos: Validated by the Voice of the Customer
When we reviewed the primary research from the University of Michigan Ross team, it was a moment of validation.
We founded Aetos on the belief that Strategy and Execution cannot be decoupled for growing companies. We have always operated as "Player-Coaches," but seeing this issue surface organically in independent research confirmed that this is a widespread market pain point.
The feedback uncovered by the Ross team is the exact scenario Aetos is designed to prevent.
1. We Don't Rely on Your Bandwidth; We Bring Our Own.
The respondent said, "we didn't have the bandwidth to fully execute." That is the reality for 99% of growing businesses. At Aetos, we view ourselves as a bandwidth injection. We don't just design the plan; we implement it. We take the burden off your internal team, allowing them to focus on their core roles while we build the infrastructure.
2. Execution-Led Strategy.
Because we know we have to execute the plan, our strategies are pragmatic. We don't deliver "Ivory Tower" theory. We deliver operational roadmaps that we are ready to drive.
3. Closing the Compliance Loop.
Drawing on the compliance research, we ensure that governance isn't just a document. We integrate compliance into your daily operations, setting up the workflows and checks that keep you safe, so you don't have to worry about the details.
Conclusion: Listening to the Unspoken Needs
The collaboration with the University of Michigan Ross School of Business was intended to be a landscape study. But thanks to the rigor of their qualitative research, it became a diagnostic tool for the entire industry.
The market spoke up and told us exactly why some engagements fail.
To the leaders who feel like they are drowning in good advice but starving for help—we hear you. You don't need another strategist telling you what you should do. You need a partner who will roll up their sleeves and help you get it done.
At Aetos, we don't just deliver the strategy. We deliver the results.
