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Over the years, I’ve seen many CEOs make a common mistake heading into Q4. Instead of taking action, they wait. They tell themselves an underperforming program or leader will work itself out before the calendar switches to January. That almost never happens. CEOs who push out hard decisions invariably find themselves in the same difficult situation in the coming year.

Every quarter has its own nuances and characteristics. This Q4 carries extra weight. The noise around AI is deafening, and CEOs who keep kicking that strategy down the road will regret it.

Vistage’s found that 84% of small and midsize U.S. businesses have already started using generative AI, and 76% of CEOs use it themselves. But only 22% have a governance plan behind it. Wages are also ticking back up, making it more expensive to retain great people. On top of that, customers increasingly want clear justification and communication of the value companies are delivering, especially amid increased prices.

The following are five time-tested strategies I’ve seen effective CEOs use to run a Q4 course correction.

1. Stop waiting for the calendar to fix what’s broken

The first move is the hardest: Stop waiting. If months of data have clearly shown that a program, product or person isn’t working, the right answer is almost always to stop investing further. Don’t give it one more quarter.

This is the “sunk cost fallacy” at work. We tell ourselves we’ve put in too much to walk away now. But that time and money are gone either way. The only question that matters is whether continuing will produce a different result. If not, the best CEOs shut it down.

That also applies to opportunities. Many of the best leaders spread themselves across too many initiatives, hoping one breaks through. But focusing on the handful of things that genuinely move the needle creates the clarity a team needs to execute.

2. Start with customers

Every course correction meeting I’ve seen work well includes clearly articulated customer stories: real outcomes customers are receiving from a company’s product or service.

Doing a better job for existing customers — and winning more like them — is the catalyst that energizes a team and points everyone toward the one path that can reliably get a business back on track.

3. Uncover the real problem

“Course correct” assumes leaders already know what isn’t working. Most CEOs do not, at least not at first. It’s usually a combination of things, and untangling them requires a carefully planned process.

Great CEOs start by making sure everyone understands the overarching strategy and how their objectives connect to it. From there, confirm people are committing to the activities the plan requires. Then, check for resources: Do teams have the skills and tools they need to execute?

When CEOs are confident that they’ve addressed these key issues, they can drive results by making sure objectives are met and plans are implemented. Now that the “productivity machine” is operating optimally, it will be much easier to tell if there really are market issues or macroeconomic issues impacting the business. These can be addressed through a strategy modification — but only if the productivity machine is still working at full speed.

4. Build room for a surprise or two

Every CEO knows surprises are coming. Almost none of us plans well for them. But planning for surprise can be the difference between implementing an effective, well-timed course correction — and missing an opportunity.

The first discipline of being prepared for surprise is trust. Great leaders trust their teams to hit their objectives when unexpected challenges arise. When surprises turn into excuses and accountability gets diffused, a downward spiral begins that’s hard to reverse.

The second discipline is staying anchored. Pivots typically won’t be dramatic if every decision connects back to the company’s mission, vision, purpose and values. On the other hand, if each surprise causes questions at the very roots of the company, leaders end up like a tumbleweed tossed around by whatever wind blows through next.

5. Check ego

The best mindset going into a course correction is fact-based and ego-less. It’s tempting for leaders to believe they designed the perfect strategy and the team simply failed to execute it. The truth is usually somewhere in between. Knowing when something isn’t working — and shifting away without taking it personally — is one of the most valuable skills a CEO can develop.

It’s also why experienced CEOs lean on a peer group or a coach to uncover blind spots. An outside perspective, from someone with no stake in the original idea, makes a better diagnosis possible.

Course correction is not a sign the year failed. It is a practice the best CEOs build into every fourth quarter. Leaders who run this sprint now turn this year’s misses into next year’s advantage.