Quick guide: Set a three year strategy without losing focus this quarter

Who this is for

Founders and leadership teams of lower middle market companies that want a clear plan they can run every week without heavy paperwork.

The quick answer

Pick three outcomes for the next three years that tie to value creation. Translate each outcome into one annual target and one quarterly milestone. Run a steady cadence that links weekly work to those milestones. Keep a not this quarter list so good ideas do not derail the plan.

The framework in five steps

1. Choose three outcomes that create value

Three is enough to focus the team and broad enough to cover the business. Use language that your team and your lenders or investors understand.

Common choices

Profitable growth
Mix shift toward higher margin offers or higher value segments
Strong cash position and reliable cash conversion

Write each outcome as a short sentence that names the customer, the offer, and the result you want. Example. Win more multi site contracts in health care. Double revenue from maintenance plans. Keep ninety days of cash on hand with a faster quote to cash cycle.

2. Turn outcomes into annual targets and quarterly milestones

For each outcome set one target for the next twelve months and one milestone for the next quarter. Keep every target measurable and simple to track.

Example targets and milestones

Profitable growth. Grow revenue from twenty million to twenty four million with gross margin at thirty eight percent. Next quarter add one point to gross margin and close one new seven figure account.
Mix shift. Move service revenue from thirty percent of total to forty percent with a plan rate above eighty percent. Next quarter launch two paid pilots with target accounts and sell twenty plan upgrades to current customers.
Cash. Improve the cash conversion cycle from ninety days to seventy five days. Next quarter reduce days sales outstanding by eight days and move ten suppliers to better terms.

Put the three outcomes and the three annual targets on one page. Under each, list the next quarter milestone in one line.

3. Limit projects and assign clear ownership

Tie projects to milestones and limit the count so the company can finish the work. A simple rule is three company objectives per year and no more than five active cross functional projects in a quarter.

For each project capture

A one line purpose that ties to the outcome and milestone
One owner who is accountable for delivery
The few steps that must be finished this quarter with dates
The metric that will move if the project works

Keep a short list of ideas that are not for this quarter. Review that list during the quarterly reset. This protects focus without losing good ideas.

4. Build a simple scorecard

Pick a small set of measures that predict results and that the team can update every week. Show actual, plan, and trend. Review the scorecard in the same order every time.

A useful set for many firms

Revenue and gross margin
EBITDA
Cash and cash conversion cycle
Pipeline value, win rate, and average sales cycle length
Net revenue retention for current accounts
On time delivery or service level

Set targets for the year and for the quarter. Mark a green band and a red band so the team can see when attention is needed.

5. Run an operating cadence that links the plan to weekly work

A good cadence is light and steady. The aim is clarity and follow through.

Weekly leadership meeting for issues and decisions. Review the scorecard and unblock projects. End with owners and due dates.
Monthly review to check metrics, project health, and risks. Adjust the plan only when data requires it.
Quarterly reset to confirm the three outcomes, set the next three milestones, and choose the next set of projects.

Publish a short note after each meeting with decisions and assignments. Keep the agenda the same to reduce noise.

A simple example

You run a service company with twenty million in revenue. The company has two offers. A project offer that is lumpy and a service plan that is recurring. Margin is thirty six percent. Cash conversion is ninety two days. The market is steady. Demand is good when response time is fast.

You choose these outcomes

Grow revenue and improve gross margin
Shift the mix toward service plans
Strengthen cash and speed up quote to cash

You set the next twelve month targets

Revenue to twenty four million and gross margin to thirty eight percent
Service plans to forty percent of revenue with plan churn under six percent
Cash conversion cycle down to seventy five days

You set next quarter milestones

Improve gross margin by one point through price and mix
Sell twenty plan upgrades and launch two paid pilots with target accounts
Reduce days sales outstanding by eight days and sign new terms with ten suppliers

You pick four projects

Pricing tune up on the top ten projects and the top ten service plan packages
Service plan upgrade motion for current customers with a clear playbook
Pilot program with a named list of twenty accounts
Quote to cash clean up that includes invoice timing, credit checks, and collections steps

You run the cadence and tie bonus to the three outcomes. You track the scorecard weekly and adjust resources when red bands show up.

Pitfalls and simple fixes

Too many priorities. Limit to three outcomes and five projects. Park the rest on the not this quarter list.
Targets with no owner. Assign one owner for each project and one executive sponsor for each outcome.
Meetings with no decisions. End every session with a list of owners and dates. Share the list the same day.
New ideas every week. Collect ideas and review them only at the monthly review and the quarterly reset.
No link to cash. Add cash and cash conversion cycle to the scorecard. Tie projects to clear cash gains.

How to communicate the plan

Share one page with the three outcomes, the annual targets, and the current quarter milestones. Add the scorecard to the same page or link it. In the all hands meeting explain what will be different this quarter and who owns each project. Give managers one slide that shows the link between department work and company outcomes. Celebrate wins that move the scorecard.

How to connect pay to the plan

Keep it simple so the link is clear. Tie leadership bonus to the three outcomes. For example split the pool across margin, mix, and cash targets. Tie sales pay to plan upgrades and to new account revenue. Tie delivery bonuses to on time service level and to gross margin by project or by team.

Your planning checklist

Three outcomes that create value are named and written in plain words
One annual target for each outcome with a clear number
One milestone for the current quarter for each outcome
A list of no more than five active cross functional projects
One owner per project and one executive sponsor per outcome
A weekly scorecard with seven to ten measures and clear bands
A steady operating cadence for week, month, and quarter
A not this quarter list that is reviewed each quarter
A short note after meetings with owners and dates
A simple link from pay to the outcomes

Tools and templates

If you want, we can share a one page strategy template, a scorecard template, and a meeting agenda pack that you can copy into your workspace.