The transition from the first quarter to the second is often where the “New Year momentum” starts to fade.
Here’s a pattern I see constantly across many mid-sized businesses: Leadership Teams begin the year with a bang. During annual planning, sometimes an expensive off-site, a long list of priorities are shared and there’s genuine energy around them, only to find that by the third month, the needle hasn’t moved on that plan.
The daily whirlwind took over and pulled the team off course, the plan started to fade and became more of a project in the background, and now another quarter is slipping by.
If you fell short of your revenue goals in Q1, or if the organization simply feels like it’s losing focus, this isn’t necessarily a strategy problem. Execution failures have multiple root causes; weaknesses and gaps across the six components every business needs to get right: Vision, People, Data, Issues, Process, and Traction.
But one of the values of investing the time and resources into a quarterly planning cadence, are that those gaps become impossible to ignore. It’s in these moments when you lift your head up out of the weeds, and assess the distance between where you said you’d be, and where you actually are that helps you to take action. Taking a hard look at what’s getting in your way, and deciding which priorities matter most for the next 90 days. When quarterly planning is done well, it’s the difference between the teams that stay busy, and the teams that are actually moving and achieving big results.
Q2 is a different kind of planning moment. Q2 planning is unique. Unlike the “clean slate” feel of January, Q2 doesn’t have that same luxury. Three months in, while the scoreboard might be behind, there’s possibly enough runway to do something about it. That combination of reality and opportunity is what makes April one of the highest-leverage moments in the business calendar.
A disciplined Q2 planning session forces the conversations that got deferred in the day-to-day. It forces the following:
- Alignment: Your key stakeholders and the entire team pulling in the same direction, not just blowing past what’s not happening or what’s not working
- Resource Allocation: People, structure, and budget constraints don’t fix themselves… identifying them here, and taking action, before they stall another quarter.
- Honest Reflection and Continuous Improvement: You and your team learn from where you fell short in the previous quarter. You identify what needs to be adjusted, makes necessary changes, decisions and commitments for moving forward rather than repeating the same patterns.
- Clarity around Executable Priorities: You break down broader business goals into concrete initiatives that a scrum team or department can actually execute on. Not just what needs to get done, but what does “done” actually look like for a 90-day world, who owns it, and how does it move the business forward?
That last point is worth pressure testing. Before locking in your Q2 priorities, poke holes in them.
- What will get in the way of us executing this quarter?
- What needs to change or be resolved to overcome that obstacle?
- Does each goal actually connect to what matters most?
A useful gut-check I use with clients is this: Every meaningful 90 day priority should tie back to at least one of these four outcomes: directly impacting revenue, directly impacting profitability, helping the team move faster and smarter or , delivering better results and satisfaction for your customers.
If a goal doesn’t touch any of these, it probably shouldn’t be a priority.
A Step by Step Guide to Your Q2 Planning Session
To run an effective quarterly planning meeting, you need a plan for the plan. You cannot simply walk into a room and “talk about the business.” You need a structured process and agenda to identify the top priorities for the coming quarter.
1. Reflect on the Past Quarter
Before looking forward, you must look back. Review the results of the last quarter. Did you hit your specific objectives and revenue goals? Which projects were completed, and which ones stalled? Use this time to celebrate success but also to be brutally honest about where the team fell short. This reflection is critical for mid sized businesses to avoid repeating the same mistakes in the new quarter.
2. Evaluate Progress Toward Annual Planning
Your Q2 planning should never happen in a vacuum. It must stay aligned with your broader business goals established during annual planning. Review your quarterly calendar to see if you are on track for the four quarters of the year. If Q1 was slow, Q2 might require stretch goals to catch up.
3. Define the Top Priorities (The Rocks)
In the Entrepreneurial Operating System® (EOS®), we call these Rocks. These are the 3 to 7 most important 90 day goals likely to move the business forward. It is critical for each rock to have clear and dated milestones with a named owner responsible for driving it to completion. When you define these milestones, ensure they are SMART goals: Specific, Measurable, Achievable, Relevant (to the annual plan), and Time bound. For example, instead of saying “Improve or Scale Marketing,” a clear objective would be “Generate 50 qualified leads by the end of June. Identify top lead sources. Define, document and implement V1 of our repeatable process to generating quality leads. Track performance for 30-days to capture key insights for action”
If find that a lot of teams don’t spend enough time here. This is pivotal as being clear on dated milestones can help teams delegate better. Especially if there are tasks that need to be ‘activated” early enough in the 90 days to drive impact, allocating dates these milestones helps teams start implementing and testing early to give the best chance of achieving results.
4. Address Resource Needs and Budget Constraints
A plan is just a wish list if you don’t have the resources to back it up. During the planning process, discuss resource allocation. Does the team have the capacity to take on these new projects? If you have budget constraints, you may need to kill a “good” idea to save a “great” one.
5. Establish Contingency Plans
Market conditions can change in an instant. While you need a firm plan, you also need the ability to pivot your execution strategy in the event that you might need to change course. Your teams’ outcomes should be clear, easily aligned and relevant to the vision but it is critical to have a Plan B for failed executions.
This is so that if an execution fails, the teams needs to respond quickly and course correct, not keep at it and hope for the best . Teams must be able to discuss potential “what-ifs” and establish high-level contingency plans for your most critical objectives.
Maintaining momentum throughout the Quarter
The planning session is just the beginning. To track progress and ensure the entire team stays involved, you must establish a rhythm of weekly meetings. This is how you evaluate progress, highlight accountability in real-time and keep things on track. If a quarterly goal is slipping in May, you have time to adjust strategies before the quarter ends.
Why Q2 Planning is Critical
Effective quarterly planning is what separates the dreamers from the doers. By following a structured quarterly planning process, you provide your organization with the focus it needs to thrive. You move from being reactive to being proactive, ensuring that every quarter builds upon the last.
Don’t let the coming quarter happen to you. Take control of your strategic direction, define your priorities, and lead your team toward a successful Q2.
Stop Guessing. Start Executing.
The biggest mistake leaders make is trying to do it all. You have a vision for where you want to be in a year, but right now, you are stuck in the weeds.
Like I always say, hope is not a strategy…you need a plan.
If after reading it you realize you need someone to walk you through building your Q2 strategy, I’m opening four spots for a Private Q2 Planning Intensive – a full day with your leadership team to get focused, get aligned, build a quarter quarter executing, and explore what it’s like to have an objective third party, professional leadership coach in the room facilitating your meeting. Just grab a spot in my calendar and let’s talk.
