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\n\t\tOpinions expressed by Entrepreneur contributors are their own.\t<\/p>\n
Over the years, I\u2019ve seen many CEOs make a common mistake heading into Q4. Instead of taking action, they wait. They tell themselves an underperforming program or leader will work itself out before the calendar switches to January. That almost never happens. CEOs who push out hard decisions invariably find themselves in the same difficult situation in the coming year.<\/p>\n
Every quarter has its own nuances and characteristics. This Q4 carries extra weight. The noise around AI is deafening, and CEOs who keep kicking that strategy down the road will regret it. <\/p>\n
Vistage\u2019s recent research<\/a> found that 84% of small and midsize U.S. businesses have already started using generative AI, and 76% of CEOs use it themselves. But only 22% have a\u00a0governance plan behind it. Wages are also ticking back up, making it more expensive to retain great people. On top of that, customers increasingly want clear justification and communication of the value companies are delivering, especially amid increased prices.<\/p>\n The following are five time-tested strategies I\u2019ve seen effective CEOs use to run a Q4 course correction.<\/p>\n The first move is the hardest: Stop waiting. If months of data have clearly shown that a program, product or person isn\u2019t working, the right answer is almost always to stop investing further. Don\u2019t give it one more quarter.<\/p>\n This is the \u201csunk cost fallacy\u201d at work. We tell ourselves we\u2019ve put in too much to walk away now. But that time and money are gone either way. The only question that matters is whether continuing will produce a different result. If not, the best CEOs shut it down.<\/p>\n That also applies to opportunities. Many of the best leaders spread themselves across too many initiatives, hoping one breaks through. But focusing on the handful of things that genuinely move the needle creates the clarity a team needs to execute.<\/p>\n Every course correction meeting I\u2019ve seen work well includes clearly articulated customer stories: real outcomes customers are receiving from a company\u2019s product or service. <\/p>\n Doing a better job for existing customers \u2014 and winning more like them \u2014 is the catalyst that energizes a team and points everyone toward the one path that can reliably get a business back on track.<\/p>\n \u201cCourse correct\u201d assumes leaders already know what isn\u2019t working. Most CEOs do not, at least not at first. It\u2019s usually a combination of things, and untangling them requires a carefully planned process.<\/p>\n Great CEOs start by making sure everyone understands the overarching strategy and how their objectives connect to it. From there, confirm people are committing to the activities the plan requires. Then, check for resources: Do teams have the skills and tools they need to execute?<\/p>\n When CEOs are confident that they\u2019ve addressed these key issues, they can drive results by making sure objectives are met and plans are implemented. Now that the \u201cproductivity machine\u201d is operating optimally, it will be much easier to tell if there really are market issues or macroeconomic issues impacting the business. These can be addressed through a strategy modification \u2014 but only if the productivity machine is still working at full speed.<\/p>\n Every CEO knows surprises are coming. Almost none of us plans well for them. But planning for surprise can be the difference between implementing an effective, well-timed course correction \u2014 and missing an opportunity.<\/p>\n The first discipline of being prepared for surprise is trust. Great leaders trust their teams to hit their objectives when unexpected challenges arise. When surprises turn into excuses and accountability gets diffused, a downward spiral begins that\u2019s hard to reverse.<\/p>\n The second discipline is staying anchored. Pivots typically won\u2019t be dramatic if every decision connects back to the company\u2019s mission, vision, purpose and values. On the other hand, if each surprise causes questions at the very roots of the company, leaders end up like a tumbleweed tossed around by whatever wind blows through next.<\/p>\n The best mindset going into a course correction is fact-based and ego-less. It\u2019s tempting for leaders to believe they designed the perfect strategy and the team simply failed to execute it. The truth is usually somewhere in between. Knowing when something isn\u2019t working \u2014 and shifting away without taking it personally \u2014 is one of the most valuable skills a CEO can develop.<\/p>\n It\u2019s also why experienced CEOs lean on a peer group or a coach to uncover blind spots. An outside perspective, from someone with no stake in the original idea, makes a better diagnosis possible.<\/p>\n Course correction is not a sign the year failed. It is a practice the best CEOs build into every fourth quarter. Leaders who run this sprint now turn this year\u2019s misses into next year\u2019s advantage.<\/p>\n<\/p><\/div>\n Over the years, I\u2019ve seen many CEOs make a common mistake heading into Q4. Instead of taking action, they wait. They tell themselves an underperforming program or leader will work itself out before the calendar switches to January. That almost never happens. CEOs who push out hard decisions invariably find themselves in the same difficult situation in the coming year.<\/p>\n Every quarter has its own nuances and characteristics. This Q4 carries extra weight. The noise around AI is deafening, and CEOs who keep kicking that strategy down the road will regret it. <\/p>\n1. Stop waiting for the calendar to fix what\u2019s broken<\/h2>\n
2. Start with customers<\/h2>\n
3. Uncover the real problem<\/h2>\n
4. Build room for a surprise or two<\/h2>\n
5. Check ego<\/h2>\n
Key Takeaways<\/h2>\n
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