The #1 Mistake Leaders Make When Setting Ambitions

Setting clear, actionable ambitions is a foundational element of any successful business strategy. Yet, far too often, I see leaders fall into a common pitfall that ends up sabotaging their growth. What is it?

The #1 mistake leaders make when setting ambitions:

They set ambitions based on what they think should be done, rather than what can actually be accomplished with focus, execution, and alignment.

Let’s break this down.

Why This Happens:

In the rush to impress stakeholders, drive growth, or simply do something "big," leaders often adopt ambitions that seem aspirational on paper but are disconnected from the reality of their team's capabilities and market conditions. They’re driven by external pressures like:

• Investor expectations
• Competitor benchmarks
• The need to look visionary

This leads to the creation of goals that sound impressive but aren't rooted in the strategic context of the business. Ambitions like “Double revenue in one year” or “Become the #1 player in the market” may look good at first glance, but they can set the entire organization on the wrong path if they're not realistic, actionable, and aligned with the core strengths of the business.

The Consequences:

1. Team Disengagement:
   When the team knows the ambition is too grand or unrealistic, motivation takes a nosedive. They feel disconnected from a goal that seems far-fetched, and it erodes trust in leadership. Instead of driving them to action, the ambition becomes a source of frustration.

2. Wasted Resources:
   Stretch goals can lead to misaligned spending, too much focus on low-priority initiatives, and resources being thrown at things that don't move the needle. This is how businesses end up with great ideas that don't work because their resources are spread too thin.

3. Strategy Paralysis:
   If the ambition is too broad or vague, the strategy to reach it becomes unclear. The business becomes paralyzed by the weight of the goal and spends too much time trying to figure out how to get there, without making any progress.

The Solution: Realistic and Aligned Ambitions

So, how do we avoid this? Simple: Set ambitions that are both inspiring and achievable.

Here’s how:

1. Ground Ambitions in Reality
   Instead of thinking about “where you want to be,” focus on where you can realistically be in the next 12–24 months based on market conditions, capabilities, and resources. Set an ambition that stretches the team, but doesn’t break them. It needs to feel achievable if they execute well.

2. Align Ambitions with Core Strengths
   Your ambition should leverage what you’re already good at. For instance, if you’ve built a strong customer base but haven’t cracked your product-market fit, an ambition like “Expand into 10 new markets” may be too soon. Instead, focus on deepening relationships and improving your product offering within existing markets before scaling.

3. Set Ambitions with Your Team in Mind
   Get input from your leadership team and key stakeholders when setting ambitions. If they don't believe in the goal, it will be hard to get them to rally behind it. This ensures that everyone is aligned and on the same page.

4. Break Down Big Ambitions into Actionable Steps
   Ambitions should drive clear, actionable steps. Rather than saying, “Become the leader in innovation,” break that down into strategic actions like “Develop 3 new products that target unmet customer needs” or “Increase R&D investment by 20%.”

The Bottom Line:

Your ambition should be both inspiring and achievable—big enough to challenge the team but grounded in what’s possible. Setting an ambition that’s too lofty or disconnected from reality will leave your team feeling defeated and waste precious resources.

But when your ambition is rooted in reality, aligned with your business’s core strengths, and broken down into manageable, actionable steps, that’s when the magic happens.

It becomes the North Star that pulls everyone together and drives meaningful, sustainable growth.

So ask yourself:
Are your ambitions grounded in reality?
Do they align with your team's strengths?
Are they clear enough to guide your strategy?

Take a hard look at the goals you’ve set for your business. Are they the kind of ambitions that will truly take your business to the next level, or are they just a shiny, distant idea that sounds great on paper?

If you want to dig deeper into setting the right ambitions and designing a winning strategy, I encourage you to explore the Business Strategy Lab—a space where we help leaders like you go beyond theory and implement actionable, real-world strategies.

Ready to turn your business ambitions into actionable strategies?
[Join the Business Strategy Lab Today]