Focusing too much on hitting quarterly numbers can lead a company to make short-term moves that get in the way of long-term strategy. If revenue has become shorthand for whether your business is working, it’s time to change the conversation, says independent adviser David Hersh in a recent article from Harvard Business Review.
Among his suggestions:
- Focus board meetings around three to five strategic issues and reinforce the quarterly number as a result of the strategy, not the other way around.
- Hire a strategic head of sales who can see the big picture of building a business, not just last-minute heroics to make the numbers.
- Ensure that your strategic plan is still appropriate, clear and embraced by the team. The majority of employees don’t fully understand the company strategy. Update the plan as needed and make sure it can be summarized in a short, clear statement.
- Make sure key performance indicators are aligned with the company’s purpose and support long-term goals.
See the full HBR article, “Stop Letting Quarterly Numbers Dictate Your Strategy.”