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It turns out, though, that, if teams’ goals are set in terms of changing customer behavior rather than shipping a set of features, they end up delivering superior results.

Sense and Respond

Jeff Gothelf, Josh Seiden

Rather, the term “strategy” should mean a cohesive response to an important challenge. Unlike a stand-alone decision or a goal, a strategy is a coherent set of analyses, concepts, policies, arguments, and actions that respond to a high-stakes challenge.

Good Strategy/Bad Strategy

Richard Rumelt

Indeed, this is what has happened at AutoTrader UK, where teams are no longer funded annually to build a set of features. Instead, the organization now checks in with each team on a quarterly basis to see how it’s tracking against initiative goals. Initiative goals are quantitative and based on changing customer behavior in some way that benefits the business. Teams get funded to change these behaviors, one quarter at a time. As the quarter nears its end the company assesses, with the team, whether it’s worthwhile to continue working toward those outcomes. If so, the team gets another quarter’s worth of runway. If not, it moves on to a new initiative.

Sense and Respond

Jeff Gothelf, Josh Seiden

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