There is no third way.

All projects and organizations can achieve goals using only two paths: iterative and deductive.

“Iterative” describes an approach in which each step builds on already accomplished results. The outcome is slow yet controlled progress. The evolution of species is one of the most prominent examples. In business life, the “continuous improvement process” follows this principle. At the start, one never knows the outcome.

By contrast, the “deductive” approach derives all action from vision and goals. The targeted results are known before the process begins. Only this method can generate the achievement of specific objectives in the shortest time. Logically, all strategic programs and all leadership activities should be deductive by default.

In many organizations, leaders and managers confuse these two approaches, with disastrous consequences when it comes to strategy definition:

Many strategies that I see are iterative (i.e., derived from a status quo and laid out as a set of trivial improvement actions).

An iterative “strategy” is no strategy!

Countless managers have led their businesses into failure by trying to replace a real strategy with some adjustments here and there.

Sure, a case can be made for either the iterative or the deductive approach, depending on the situation and the goals. As a leader, it is essential that you understand that you have a choice and indeed must choose. Many managers confuse the two modes and then wonder about mediocre success.

Real leaders think and act in a deductive way.

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