Why Strategy Must Come Before Target-Setting: A Common Misunderstanding

“Setting targets without strategy is like setting sail without a map — you might move fast, but you’ll drift aimlessly.”

Every CEO loves setting bold targets. It feels decisive. It sounds inspiring. It gives everyone something to chase.

But here’s the trap: too many leadership teams jump straight to the numbers before they’ve defined the direction.

In boardrooms across the world, ambitious revenue targets are being set with little conversation about how the company will actually win in its market. The result? Misaligned priorities, frustrated teams, and numbers that look great in theory — but crumble in execution.

Let’s unpack why strategy must come first, and how skipping it can quietly sabotage long-term success.

1. Strategy Starts with Purpose — Not Numbers

A target like “increase revenue by 15%” or “launch five new products” might sound compelling. But if you don’t know why those goals matter or how they connect to your company’s purpose, they’re just noise.

Good strategy starts by answering three foundational questions:

• Why does our business exist?
• Where do we want to go?
• How will we win?

Takeaway: Targets without context lead to confusion. Strategy defines meaning — and meaning drives motivation.

 Example: Kodak once had clear revenue targets, but no strategy for digital disruption. Canon and Nikon, by contrast, linked their goals to a strategic bet on digital photography — and thrived.

2. Targets Without Strategy = Short-Term Thinking

It’s tempting to set targets first. After all, you “need a number” to focus the team. But this approach often leads to tactical firefighting — chasing quarterly wins at the expense of long-term advantage.

Roger Martin’s Playing to Win framework makes it simple:

Strategy is about making choices — where to play, how to win, and what capabilities to build.

Without those choices, your targets might drive activity — but not progress.

 Takeaway: Targets should be milestones on a map, not a substitute for the map itself.

3. Strategy Aligns People — Targets Alone Don’t

Targets create accountability. Strategy creates alignment.

If every department sets its own goals in isolation, the company ends up pulling in multiple directions. When you build strategy first, every goal supports a common purpose — creating momentum, not fragmentation.

Example: Amazon’s obsession with the customer isn’t just a value — it’s a strategy. Every goal, from Prime to AWS, ladders up to that single, unifying purpose.

Takeaway: Alignment beats ambition. A company moving in the same direction at 80% speed will always outperform one sprinting in 10 directions.

4. Targets Are Tactical — Strategy Is Transformational

Targets are about “what.” Strategy is about “why” and “how.”

A target might tell you what success looks like this quarter. Strategy ensures that success compounds year after year.

By focusing too quickly on metrics, leaders risk creating a culture obsessed with performance — not progress.

Takeaway: Targets measure the journey; strategy decides the destination.

5. Strategy Creates Focus — and Focus Wins

Great strategy is about making trade-offs. You can’t be everything to everyone — and neither can your goals.

Netflix didn’t just set targets for customer growth; it made a strategic choice to pivot from DVDs to streaming, realigning all targets around that vision. Blockbuster clung to its revenue goals — and lost the war.

Takeaway: Strategy forces focus. Focus creates power.

6. Targets Without Execution Are Empty

WeWork had one of the fastest growth trajectories in modern business — until it collapsed. Why? Because it scaled without a clear strategy for profitability or execution discipline.

Strategy defines not only what to achieve but how to deliver it. Without that execution backbone, targets are just numbers on a slide.

Takeaway: A goal without execution is a wish.

Final Thought — Fix the Root, Not the Result

When leaders ask me, “Ted, why haven’t we set targets yet?” my answer is always the same:

“If you don’t fix the issues causing underperformance, how will you ever hit the numbers?”

Hope is not a strategy.

The best-performing companies know this truth: targets follow clarity.

Start with vision. Make deliberate strategic choices. Build alignment. Then — and only then — set targets that actually mean something.

Ready to align your targets with a winning strategy?

At Strategy & Execution Advisors, we help leadership teams move beyond arbitrary targets to build clarity, focus, and momentum.

Contact tedb@strategyandexecution.com.au for a free 30-minute discovery session.

Numbers don’t drive greatness — clarity does.

TED BONEL, SCALING UP PRACTITIONER – STRATEGY & EXECUTION BUSINESS ADVISORS

Are you looking to scale your business and execute strategy with clarity and impact? I help CEOs and founders turn big ideas into real-world results, guiding small to mid-market companies through tailored strategic insights that drive growth.

My expertise lies in simplifying complexity – bridging high-level strategic frameworks with the practical realities of running a business. Unlike many consultants who focus solely on theory or execution, I specialise in both—translating strategy into actionable, transformative steps that deliver lasting results.

Ready to measure and strengthen leadership in your organisation?

Contact me at tedb@strategyandexecution.com.au to schedule a free 30-minute discovery meeting.

ABOUT STRATEGY & EXECUTION

For over 20 years, Strategy & Execution has supported leaders and organisations in developing and executing winning strategies. We provide expert facilitation, executive education, and hands-on consulting to help businesses refine their strategic direction and implement it effectively.

Using proven methodologies like Scaling Up, E-Myth Mastery, Outthinker, and more, we challenge conventional thinking and equip organisations with the tools to accelerate growth. Our approach is dynamic—combining deep business experience with practical execution. We don’t just advise; we roll up our sleeves and work alongside you to make strategy happen.

If you’re preparing for a strategy development or execution challenge and are committed to creating real value, we’d love to hear from you. Learn more about our work or upcoming workshops