As we emerge from the recession, Aberdeen Group’s findings in its 2009 State of the Market Mid-Year Insights report have me scratching my head.

On the one hand, execution of strategy and shortage of labor/talent dropped from first and second place, respectively, to third and fourth on the “Top Three Challenges of 2009” query. This is not very surprising, as economic conditions and market volatility moved into first and second place, respectively, for 2009. The importance of execution of strategy dropped by only 7% (52% to 45%) from 2008 to 2009 – especially in a recession, executing strategy is critical, and management seems to recognize this by keeping shortage of talent as its next most important challenge.

However, and this is what leaves me a bit perplexed, when asked to list their top three strategies for 2009, respondents list “improve business execution” as first at 57%, with “staff development/expansion” dead last at 24%. While I understand that expansion is not in the cards for many right now, development should always be. After all, how do you expect to improve business execution if you are not developing your staff to deliver precisely that needed improvement?

If you’re going to improve your business results, then you must get all of your employees aligned with your changing/changed business strategies. This is a job for the CEO and his/her immediate team, not HR. As I’ve said before, one of the most effective and positive methods for creating alignment is through strategic recognition. These highly structured programs encourage employees to notice, acknowledge and praise the exceptional efforts and behaviors of colleagues that reflect the company values in achievement of the strategic objectives.

What do you think of the Aberdeen findings? What are your top priorities for 2009 and how do you plan to achieve them?