Does Strategy Determine Performance?

The short answer is yes, but it’s not as simple as cause-effect.

• Having a solid strategy is important, but it doesn’t guarantee optimal performance.

• Yet peak productivity rarely happens without direction and focus.

To go deeper, let’s dive into the relationship between the two.

As a visual learner, I like the analogy of long-term vs. short-term.

If vision is to strategy, then tracking progress is to performance.

Take KPI’s as a measurement tool or the M (measurable) in SMART goals.

Achieving goals matter, but only if they are leading towards a bigger picture.

Take this sports example: golf is an individual sport, but strategy matters more in a team format competition.

That means personality, strengths, mindset, etc. are factors to consider within strategy.

And leadership’s responsibility is to set the stage, aka strategy, for optimal results.

It won’t ensure success, but being “busy” without having an end goal in mind is useless.

I’d argue as you move up in position in the corporate world, strategy becomes more of your role, not less.

The more senior you become, the further away from the frontline you’re positioned.

Therefore strategy becomes the leadership imprint you leave.

In leadership, your performance is based on your team’s output plus the strategy you implement.

That can be a scary concept for control freaks, yet it highlights the importance of putting the right strategy in place.

So strategy isn’t as simple as the chicken-egg argument…

But leadership needs to know without the proper strategy in place you leave your people “lost” and without a crucial resource.

Strategy is like having a target to aim at.

Without the target, how do you know which darts are hitting the bullseye?

You cannot control individual performance, but you can impact it by cultivating a strategy that unites effort.

When consulting companies, I use the equation leadership + strategy = culture.

But where does performance land in the formula above?

According to Betterworks, when your employees see how their work directly contributes to your organization’s goals, they become 35% more efficient and productive.

So that’s why strategy matters towards performance.

As leaders, control what you can control (strategy) and stop trying to control people’s performance.

That happens when the direction, guidelines and accountability are in place.

If you need help closing the gap between strategy and performance management, contact me here.

God Bless,

Scott

If you found this helpful and you’re looking to improve your soft skills as a leader, here are ways to work with me directly

• 🗣 Hire me to speak at your company or next event (watch my speaking reel here)

• 🎤 Invite me to lead an interactive training workshop, remotely or in-person (depending on location)

• 🤝 Start 1:1 coaching with me as a new manager, current leader or executive (I once managed 30 people 1:1 weekly❗️)

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