Have you set business and personal goals for the coming year?
Successful business people often say having clear goals is instrumental to their success.
They relish thinking about the exciting things they can achieve and enjoy imagining their lives once those goals are attained.
So why doesn’t everyone take goal-setting more seriously?
It could be that setting goals is - to some extent - about predicting the future, which is filled with uncertainty. Who can really say what the economy, world and business climate will look like in 12 months? Another obstacle may be the need to get buy-in from partners, key employees, customers, lenders, investors etc.
Here are some thoughts on effective goal setting which can help overcome these challenges.
1. Think of goal-setting as a process
Get an appropriate group of stakeholders together and set time aside to think about the options. Generate ideas and then allow some time for these to germinate. You may have to go through this cycle a number of times before arriving at an exciting and meaningful set of goals.
2. Less is more
Setting dozens of goals is a recipe for failure. Goals usually relate to strategic objectives (versus more tactical ‘tasks’). One to three goals is usually a good number and they may need to be prioritised.
3. Use the SMART framework
While simple, this well-established framework reminds us that goals should be:
- Specific: Even someone unacquainted with your business should have absolute clarity on what you expect to achieve. Writing goals down forces us to get suitably specific.
- Measurable: How will you know when you succeed? ‘Numeric’ goals (like a target revenue number) provide a lot of clarity. There’s no place for vague goals.
- Attainable: Think what will be required to achieve the goals. Ensure you have the necessary resources or skills AND the buy-in from others, if required.
- Relevant: Goals should be consistent with the grander mission, vision and values. For example, if you have ambitious growth goals, is now the time to take that three-month sabbatical you’ve been considering? Maybe… but the goals should support the broader purpose.
- Timely: The time frame should be specified and may vary considerably, depending on the goal. Examples of short term goals include implementing new business software, improving a business process (like invoicing) or launching a new website. Long term goals might involve growing revenue or the number of customers, launching new products, acquiring a business or appointing a leadership team.
Goal setting helps leaders stay on track, which has positive outcomes for employees and other stakeholders (investors, customers, vendors etc.)
Have you made time to set exciting and meaningful business and personal goals?
Need help with business goal-setting. Get in touch with Alliott NZ's business advisors in Newmarket Auckland on 09 520 9200.
