Magical thinking in business typically evidences itself as a disconnect between the capabilities, skills, and capacity of the teams that are actually doing the day-to-day work of the business, and what management believes are the capabilities, skills, and capacity of those same teams.

In my experience, run rate and momentum are the most important things that determine a business’s performance early in the new year. You can have glorious PowerPoint presentations that illustrate a bright, shiny New Year, but if there’s no momentum and your teams haven’t already upskilled and allocated significant resources to the plan, then you’re almost certainly going to face disappointment in Q1.