Which approach best describes what drives action in your company?

Our reader poll today asks: Which approach best describes what drives action in your company?

• Finances determine which actions we should take and business outcomes are the result 55.00%
• The market environment dictates which business actions to take and finances are the result 45.00%

Beware of numbers driving strategy. A very common strategy mistake I see companies make is letting their financial results dictate their strategy. “Last year’s budget plus 10%” is not a strategy – it’s a goal. If you use that approach to drive strategy, you might pursue short-term financial results that are not aligned with market trends. For example, that approach may lead you to invest in declining technologies and avoid investments in new areas like AI. While that approach may deliver short-term financial results, you could be harming yourself long-term. I strongly advise companies to assess the market and competition, decide where they want to differentiate themselves to compete most effectively, then assess the financial results that come from that strategy. If the financial results are acceptable, pursue the strategy. If they’re not, consider other ways to attack the market.

– Mike Figliuolo at thoughtLEADERS, LLC

Did you enjoy this post?  If so, I highly encourage you to take about 30 seconds to become a regular subscriber to this blog.  It’s free, fun, practical, and only a few emails a week (I promise!).  SIGN UP HERE to get the thoughtLEADERS blog conveniently delivered right to your inbox!

These results were originally a SmartPulse poll in SmartBrief on Leadership which tracks feedback from more than 240,000 business leaders. Get smarter on leadership and sign up for the SmartBrief on Leadership e-newsletter.