Leadership Insights from PPG SVP Amy Ericson: Why Growth Strategies Fail Without Operational Alignment

Every company wants to grow. Most have a strategy to get there. Yet many still fall short. For business leaders, the issue is rarely the strategy itself. More often, companies struggle because the organization is not aligned behind it.

Recent McKinsey research found that even high-performing companies leave about 30% of a strategy’s potential value unrealized because their operating models fail to fully support execution.

That finding reflects what I’ve seen throughout my career. Growth is not driven by one team alone. Commercial teams are experts in customers, markets and opportunities, while manufacturing, supply chain, research and development (R&D), digital, and other critical functions bring the expertise that bring those opportunities to life. Neither succeeds in isolation.

When all functions are aligned, companies execute faster, solve problems sooner and create more value for customers.

Focus creates momentum

One of the biggest obstacles to growth is trying to do too much.

Industrial coatings companies have no shortage of opportunities. When organizations pursue too many priorities at once, resources become stretched, decision making slows and teams lose focus. That’s why over the past several years, our business has narrowed its strategic priorities. We identified the markets where we believe we can best add value for the customer, and for PPG.

That approach changed more than our investment decisions. It changed how we worked together. Every function understood where the business was headed and how it contributed to achieving those goals. Focus gave us clarity. Clarity improved execution.

Strategy belongs to the entire organization

The strongest organizations treat manufacturing, supply chain, digital, R&D and other centralized teams as strategic partners with the business units. I think of them as centers of expertise. They bring capabilities that individual business units cannot build on their own. The key is making sure everyone understands the business strategy. One of my favorite questions from a functional leader is, “Can I get a copy of your business strategy?”

That tells me they want to understand where we are going before deciding how they can contribute. Those conversations lead to better decisions, stronger partnerships, better business outcomes and customer experiences.

Alignment also requires communication. Important issues deserve a conversation. I have learned that picking up the phone or meeting face to face almost always produces a better outcome than sending another email. Regular conversations build trust, and trust helps organizations solve problems more quickly.

Innovation requires alignment

Innovation is another area where operational alignment matters. It begins with understanding a customer’s purpose and challenges and bringing together the right expertise to solve it. A good example is our work in the marine industry. PPG introduced electrostatic application technology for marine coatings in 2023. By combining chemistry with an advanced application process, shipyards can improve transfer efficiency, reduce overspray and lower material waste. In one case study, a shipyard reduced overspray by approximately 40%.

That result did not come from one team working alone. Electrostatic application, for example, began with our commercial teams identifying a real challenge: coating overspray, which is ultimately waste, in shipyards. Our technical teams worked to develop an innovative solution, leveraging technologies from PPG’s aerospace and automotive businesses. Our supply chain teams help us turn it into a reality, and allow us to execute globally. Our field technical service teams provided on-site insights, while our digital teams helped tell us what’s next. Every function played a role in turning a promising idea into a practical, outside-the-can, solution.

We see the same opportunity in data centers. The rapid growth of artificial intelligence is driving unprecedented investment in all parts of digital infrastructure. Operators need to build facilities faster while improving energy efficiency, managing water resources and protecting critical assets over decades of operation.

Protective coatings contribute to each of those goals. They help protect structural steel from corrosion, support passive fire protection systems, improve the durability and efficiency of cooling water infrastructure and reduce maintenance over the life of the facility.

Meeting those demands requires close coordination across the business. Technical experts, manufacturing teams, supply chain and commercial organizations all need to understand where the market is going and how they can help customers succeed.

Stay disciplined during uncertainty

Every business experiences uncertainty. Markets move, regulations change, supply chains tighten and customer priorities evolve. Those conditions create pressure to constantly adjust strategy.

One of the most important responsibilities of leadership is distinguishing between temporary challenges and long-term shifts in the market. Not every headwind requires a new strategy.

Employees appreciate honesty about the obstacles ahead. They also want confidence that leadership has a clear direction. Consistent communication helps people stay focused on what matters most, even during difficult periods.

Growth is a team effort

The companies that consistently outperform execute well because every function understands its role in delivering results. While the business strategy sets the direction, operational alignment determines whether you arrive. When leaders create clarity, establish shared priorities and bring the right expertise together, organizations move faster, innovate more effectively and build sustainable growth.

Amy Ericson is PPG Senior Vice President, Protective and Marine Coatings, where she leads the global business focused on coatings that protect and extend the life of industrial assets in the world’s most demanding environments. To learn more, visit www.ppg.com/pmc.