Because strategic direction defines the nature of the desired relationship between a business and its customers, objectives are only strategic when they lead to outcomes that are recognised by customers. Strategy objectives, therefore, are always externally focused. Internal objectives – creating better employee involvement, or becoming one of the best work places in America – do not qualify as strategic objectives unless they create changes that are recognised by customers. Businesses should not neglect internal improvements, but, in order to be strategic, internal improvements should be directed at improving performance in ways that are noticeable to customers.
Real Time Strategy pg 67