This dual Viewpoint by Professor Malcolm McDonald delivers a sharp warning to managers clinging to outdated budgeting processes — and a rallying call to reinstate long-term strategy as the foundation of commercial success. It also reinforces a timeless truth: strategy must come before tactics, or your best efforts may lead to failure faster.
Part 1 – The Tyranny of Forecasts, Targets and Budgets
Malcolm tears down the false belief that budgets and forecasts equal strategy. He reveals how blind commitment to numerical targets can cause:
- Short-termism that ignores customer needs
- Manipulation and gaming of performance numbers
- Fear-driven culture and widespread inefficiency
- Catastrophic collapses (Enron, NHS, public sector policing)
Key insight: “Even a laptop can create a forecast. Without a market-based strategy, targets just cause chaos.”
Action Points
- Ensure forecasts and budgets are the result of a strategic marketing plan — not the other way around
- Reject target-setting as a substitute for leadership
- Audit every metric: does it reflect value creation or bureaucratic pressure?
Part 2 – Strategy Before Tactics
Drawing on Malcolm’s widely referenced Strategy/Tactics Matrix, this section illustrates how even the most efficient execution is useless — or dangerous — if it’s based on the wrong strategy.
Key distinction:
- Strategy: Doing the right things
- Tactics: Doing things right
Visual frameworks:
- Figure 1: Strategy vs. Tactics Matrix — where bad strategy kills fast, good strategy thrives
- Figure 2: The Salesperson Analogy — hard-working but wrong-minded reps create double the damage
Action Points
- List your key markets by priority and define your differential advantage in each
- Build strategy first — then select the most efficient tactics
- Use Malcolm’s matrix to assess where your team or campaigns fall
Quote
“Doing the wrong thing well isn’t the most productive way forward — it just speeds up the failure.” – Professor Malcolm McDonald
Download the Full Viewpoint
This summary captures the core warnings and methods — the full PDF includes referenced commentary, frameworks, and real-world organisational examples.