An Annual Review: Constant Firefighting Usually Signals a Problem with Strategy and Goals

Robin: ‘The fourth quarter of 2023 begins today. Take a look back at each decision and action you, your organization, or your company took in the first three quarters of 2023. Or break the review down into monthly, weekly, and daily actions and decisions. Were they coherent and consistent? Did they move in an established direction, or were you simply responding to whatever came along each day? If every day is improvised, and events, problems, and new customers all arise at random, there is probably something wrong with your strategy and goal-setting.’ ---- Ning Xiangdong: Strategic management must begin by clarifying the goal. Strategy must take the form of a goal and a direction. Only then can it guide every action. In the view of Carl von Clausewitz, author of On War, the most important thing in business, warfare, or even political struggle is that every person and activity revolve around the overall objective. Clausewitz says that every small engagement is part of a larger campaign. Commanders must know that their small actions serve the single objective of winning that campaign. In many companies, strategy is ultimately condensed into a slogan. That is because an organization’s goals and actions depend on the joint efforts of many people. Their actions need to align: one person must not undermine another, and one department must not create problems that another department has to expend great effort cleaning up. Coordinated action requires an especially clear goal to guide everyone. The work each person and department does every day should also connect coherently. There is a question of continuity across all work and action. Actions should form a combination of punches, rather than isolated shots. That requires a very clear goal toward which everyone can keep working. To summarize, strategy’s task is to maintain consistency in action and ensure that team members and other people understand the team’s goals deeply enough to coordinate. Coherent action and coordination among members are why we need an explicit strategy. A goal is therefore an important element of strategy. But remember: a goal is an important part of strategy; strategy must never be reduced simply to a ‘goal.’