You Can't Just Check

More than 50 years ago Bobby Fischer defeated Boris Spassky to become the first American to win the World Chess Championship. The match in Reykjavik is now known as the “Match of the Century.” 

It was bigger than chess in part because it was symbolic of the Cold War. The Soviets had a system that had dominated world chess for decades. In some ways, it was an interesting precursor to Miracle on Ice in 1980.

But this wasn't just chess. In fact, the "match" was actually 21 chess games, with Fischer winning the match 12.5 to 8.5. But Fischer didn't win by simply reacting to the move directly in front of him.

Elite chess players think several moves ahead. They evaluate the board, anticipate consequences, identify risks, and seek opportunities.

In short, they make decisions based on where the game is going, not where it currently sits. 

Financial performance tells you a lot about "the board" as it sits today.

You may think "Financials are strong. EBITDA looks good and revenue is growing," but how do you know revenue is growing for the right reasons?

Financials and EBITDA reflect today, but continuing that performance depends on strong Quality of Growth (QofG).

And the truth is, strong financials can mask average QofG. 

That's a key point because QofG signals what could happen three moves from now. 

• What if sales is depending too heavily on just a few people (maybe just one)? 

• What if marketing is generating just enough demand, but not consistently? 

• What if a strong brand is hiding a weak commercial process? 

• What if leadership is aligned on the numbers but not what's driving them? 

None of these points are likely to show up in today's financials.

But they'll show up in your business eventually.

Hopefully before they carry a high cost.

Just as great chess players don't simply evaluate the pieces, great business leaders can't just "check" on the numbers.

You have to look for what's next. And that requires evaluating your QofG, Mate.