The Role of Level of Ambition in Strategy Formulation
As discussed in a previous article, the first step in strategy formulation involves defining your vision and mission. These statements provide direction and purpose. However, since they are expressed in words, they may be open to interpretation.
To bring clarity, the next step is to define the Level of Ambition—a tool that translates vision and mission into measurable outcomes.
What Is the Level of Ambition?
Strategy is a journey that moves an organization from its current position to a future destination. If the vision is a picture of that destination, and the mission is the reason for the journey, then the Level of Ambition acts as the GPS. It defines the specific path and milestones.
More precisely, the Level of Ambition turns vision and mission into a set of Measures of Success. These are measurable targets with clear “from” and “to” values. The “to” should be directionally accurate but not overly rigid. It should encourage problem-solving rather than lock the organization into inflexible benchmarks.
For example, let’s say a company currently generates €95.7 million in revenue. The Level of Ambition, aligned with its strategic vision, might set a five-year revenue target of €335 million. If the company reaches this number, it has successfully fulfilled its vision.
How to Define the Level of Ambition
Step 1: Identify Relevant Measures of Success
Once your vision and mission are in place, the next step is selecting the few Measures of Success that best reflect progress toward those goals.
A powerful tool for this is the Balanced Scorecard, developed by Kaplan and Norton. It encourages a broader view of success, looking beyond financials.
The Five Strategic Perspectives:
- Financial – Metrics include revenue growth, EBIT margin, ROI, and liquidity ratios.
- Customer – Includes Net Promoter Score, churn rate, lifetime value, and market share.
- Internal Business Processes – Covers process efficiency, time-to-market, and quality.
- Learning and Growth – Tracks employee engagement, innovation rate, and training coverage.
- ESG (Environmental, Social, Governance) – Monitors emissions, board diversity, labor practices, and gender pay equity.
Each metric should be clearly defined, easy to understand, and directly linked to strategic goals. This ensures employees across all levels know what success looks like and how their role contributes.
Step 2: Define “From” and “To” Values
With your success metrics defined, set realistic yet challenging “from” and “to” targets. These represent your starting point and your desired outcomes.
Effective strategy requires stretch goals—targets that push boundaries but remain achievable. These goals inspire innovation, demand collaboration, and promote a growth mindset.
However, ambition must be balanced. Goals that are too extreme can lead to burnout or disengagement. That’s why it’s essential to base them on a clear understanding of your organization’s capabilities, market dynamics, and available resources—be it capital, people, or technology.
Strategy in a Page: Making It Clear for Everyone
To communicate your strategic direction across the organization, use a tool like Strategy in a Page. This one-page document outlines your Vision, Mission, and Level of Ambition in a concise and visual format.
Once shared across teams, it becomes a powerful alignment tool. Everyone—from senior leadership to frontline employees—can see how their work connects to the company’s broader goals. This fosters unity, clarity, and purpose across the organization.
Crucially, the strategy must remain flexible. Business environments evolve, and your strategy should evolve with them. Revisit and revise your “Strategy in a Page” as needed.
Why the Level of Ambition Matters
A clearly defined Level of Ambition helps organizations:
- Translate strategy into measurable goals
- Align teams and departments toward shared objectives
- Encourage high performance and strategic thinking
- Monitor progress and adapt to change effectively
By setting ambitious yet achievable goals, companies can inspire excellence, attract top talent, and fuel innovation.
Final Thoughts
An ambitious strategy is only as strong as the goals that support it. By defining your Level of Ambition with precision and purpose, you create a clear path to your vision.
Aim high. Execute strategically. Exceed expectations.
