In a business world obsessed with speed, the most successful leaders know that direction matters more than velocity.
After working with dozens of companies over the past two years as an independent consultant, I've identified one consistent factor that separates thriving businesses from struggling ones: they put strategy first. This might sound obvious, but you'd be surprised how often it's overlooked in the rush to create momentum and show immediate results.
Research from McKinsey shows that companies with clearly articulated strategies are 2.5 times more likely to be top performers in their industries. Yet a Harvard Business Review study found that 67% of executives struggle to translate strategic objectives into actionable plans.
The Speed Trap
I see it everywhere—leadership teams caught in the "action equals traction" mindset. There's this persistent belief that "AMP" activities naturally lead to meetings, which lead to pipeline growth. But activity without direction is just motion, not progress.
At a leadership meeting focused on acceleration, I made a point that resonated with everyone. In my discussion group, I started spinning rapidly in circles, then suddenly stopped and asked: "I moved really fast, but how far did I get?"
That's the fundamental issue. Without a destination, speed is meaningless. You need clear coordinates before you can plot an efficient journey.
According to Gartner, organizations that successfully align their operating model with their strategy realize 20% higher performance than those with misalignment. Your algorithm reveals this alignment (or lack thereof).
Your Business as an Algorithm
Think of an algorithm in its simplest form: the fewest number of steps needed to solve a problem efficiently. That's exactly what good strategy is—the optimal path between your current state and desired outcomes, considering your available resources and timeline.
To build this "business algorithm," you need to understand three key elements:
- Your starting state (where you are now)
- Your end state (where you want to be)
- The resources and timeline available to get there
Building Your Strategic Framework
Here's my proven step-by-step approach to creating a business strategy that actually works:
1. Set the right timeframe
Five years is typically too distant for practical planning; one year is often too short for meaningful transformation. For most clients, I recommend a two-year horizon, though three years works better for certain business models.
2. Break down goals into quarters
Take your two-year business goals—whether they focus on revenue, account numbers, pilot locations, new verticals, moving upmarket, or geographic expansion—and break them into quarterly targets.
3. Establish your baseline
Gather your most current metrics to understand exactly where you're starting from.
4. Map your complete business flow
Run a whiteboard session mapping your entire business process from left to right:
- Sales lead sources
- Sales pipeline process
- Win/loss ratios
- Customer onboarding process
- Customer support steps
- Attrition points (including win-back initiatives)
5. Add timelines to each stage
Assign realistic timeframes to every step of your sales process, onboarding sequence, and customer lifecycle.
6. Quantify everything
- Assign percentage of revenue from each lead source
- Document win/loss percentages
- List customer characteristics and average revenues
- Calculate attrition percentages
- Determine lifetime value for each customer segment
For profitability-focused businesses, also include cost-to-serve metrics for different customer types.
7. Align resources with your framework
Now comes the crucial part—assigning people and money to execute your strategy:
- What internal/external programs, people, or companies supply your leads?
- How efficient and scalable are these sources?
- Are your lead channels balanced or overly dependent on one source?
- What new channels align with your customer focus and minimum deal economics?
- What additional resources will you need to support your required growth rate?
- What funding limitations might constrain lead generation and scaling efforts?
Running Your Business Algorithm
With this framework complete, you can now identify the fewest steps with the lowest risk profile to achieve your goals. The result isn't a foolproof plan—nothing in business ever is—but it creates a sound strategy that mitigates risk and maximizes your chances of success.
The Patience Paradox
Here's the irony: taking time for strategic planning ultimately saves time in execution. As the old saying goes, "Give me six hours to chop down a tree, and I will spend the first four sharpening the axe."
In today's fast-paced business environment, the pressure to act quickly often undermines the careful planning that enables sustainable growth. The most successful leaders resist this pressure, understanding that strategy first doesn't mean action later—it means more effective action now.
By developing your business algorithm before accelerating execution, you won't just move faster—you'll actually get somewhere worth going.
And isn't that the whole point?
Need some strategic help? Schedule a meeting and let's discuss.