Strategy Meets Finance

Is Your Strategy Any Good? What You Need to Know | Ep 205

Dec 29, 2025
Is your business strategy effective? Discover how to clarify your team's understanding and validate strategies through financial metrics. Explore the importance of assessing profit margins against industry benchmarks and recognizing when cash flow issues may indicate deeper strategy flaws. Learn to identify customer-valued advantages and modernize your strategic framework for faster decision-making. Steve compares progress in business to jiu-jitsu, stressing focused effort for better outcomes. Build sustainable strategies for healthy returns!
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ANECDOTE

When Strategy Fails To Stick

  • Steve Coughran describes explaining strategy in an all-hands and finding a leader couldn't repeat it.
  • He took responsibility because leaders must ensure the team actually understands the strategy.
ADVICE

Test Strategy Clarity With One Question

  • Ask your team in one or two sentences to explain the company's strategy to test clarity.
  • Use their responses to reveal gaps and fix communication quickly.
ADVICE

Use Financials To Validate Strategy

  • Pull your income statement and compare operating profit percentage to industry benchmarks.
  • If you're below average, treat that as a sign your strategy lacks a competitive advantage.
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