What is a critical indicator that a company's strategy is working effectively?

A critical indicator that a company's strategy is working effectively is when it achieves its financial and strategic objectives and performs above average. This outcome demonstrates that the company's strategic choices are resulting in operational success and competitive advantage.

When a company meets its financial objectives, it signifies that it is generating sufficient revenue, managing costs effectively, and maximizing profitability. Additionally, achieving strategic objectives indicates that the company is successfully implementing its long-term goals, whether through market share acquisition, customer satisfaction, or brand reputation.

Performing above average in the industry reflects the company's effectiveness in leveraging its resources and capabilities, suggesting that it has a robust strategy that resonates in its market. Such performance typically results from a well-defined strategy that not only addresses current market conditions but also anticipates future trends and challenges.

While having more core competencies than rivals, aligning with industry success factors, and leading in product innovations are all important aspects of a successful strategy, they do not inherently guarantee overall effectiveness. Achieving and surpassing financial and strategic milestones is the most comprehensive indicator of success, incorporating elements of operational excellence, market positioning, and long-term sustainability.