In this chapter, the book challenges the traditional approach of setting fixed, long-term plans and instead promotes empiricism—a method of continuous learning through feedback and adaptation. The key takeaway is that businesses should measure progress based on real-world data rather than rigid assumptions. It also introduces the shift from SMART goals to SM goals, emphasizing flexibility in goal-setting.

Why Businesses Need Empirical Thinking

Many businesses rely on detailed planning and forecasting to drive their strategies. However, the reality is that markets change, customer needs evolve, and new challenges emerge. A rigid plan that worked yesterday may be completely ineffective tomorrow.

This chapter emphasizes the importance of empiricism, which means businesses should:

  • Set goals based on real-world evidence, not assumptions.
  • Continuously test and adjust strategies instead of sticking to a fixed plan.
  • Use feedback loops to refine objectives based on data, not intuition.

By adopting this approach, businesses become more adaptable and responsive, ensuring they are always aligned with the most relevant opportunities.

Shifting from SMART Goals to SM Goals

For years, companies have been advised to use SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound). However, the book argues that only S (Specific) and M (Measurable) are truly essential.

✅ Why drop A, R, and T?

  • Achievable (A) can limit ambition—sometimes the best goals are those that stretch beyond what seems possible.
  • Relevant (R) is often redundant—if a goal isn’t relevant, it shouldn’t be considered in the first place.
  • Time-bound (T) can be restrictive—setting rigid deadlines can force teams to rush rather than focus on value.

Instead, businesses should focus on:

  • Clear and specific objectives that define what needs to be accomplished.
  • Measurable indicators that track whether progress is being made.
  • Flexibility to adjust based on real-world results.

This shift allows for agility in goal-setting, ensuring businesses stay on track without being trapped by predefined constraints.

How to Apply Empiricism in Goal-Setting

To make real progress, organizations should:

1. Break Big Goals into Small Steps
Rather than setting a massive, long-term goal, break it down into:

  • Strategic goals (long-term vision)
  • Intermediate goals (milestones to measure progress)
  • Tactical goals (small, immediate actions to move forward)

2. Use Data to Guide Decisions
Instead of assuming a strategy will work, organizations should run small experiments, gather feedback, and adjust accordingly.

3. Adapt Goals Based on Feedback
A goal that seemed relevant six months ago might not be valid today. Businesses should constantly ask:

  • ✅ Is this still the right goal?
  • ✅ Are we measuring the right things?
  • ✅ What new information should we consider?

By embracing empiricism, organizations become more adaptable, customer-focused, and resilient, ensuring that every decision is grounded in reality.

Final Thoughts: The Path to Business Agility

Rigid planning leads to rigid thinking—and that’s dangerous in today’s fast-changing world. Instead of sticking to fixed plans and outdated goals, businesses should:

  • Use real data to track progress instead of assumptions.
  • Set flexible goals that evolve with market needs.
  • Measure what truly matters and adjust as needed.

By applying empirical thinking, organizations stay agile, competitive, and value-driven, making smarter decisions based on evidence, not guesswork.

* images are created by AI