Are mainstream strategy applications leading to mismanagement in the financial services industry? This paper suggests that the financial services industry's application of mainstream strategy literature gives ample consideration to an organization’s task and technical environment. However, this level of analysis may not explicitly deal with the larger institutional context. Demonstrating the utility of institutional theory in understanding conformity pressures, the study uses the Canadian banking industry as an exemplar of a highly institutionalized financial services industry. The author calls this conformist strategy "mismanagement." This research challenges the traditional approaches to strategy within the financial sector, offering a new perspective for understanding institutional pressures. The study contributes valuable insights for those seeking to navigate the complexities of the financial services industry