Successful companies set goals. Without them, they have no defined purpose and nothing to strive for; consequently, they stagnate and struggle for meaningful accomplishments. Goals are stepping stones to an end result. They must be present in every business plan and become a regular part of ongoing business operations.
Business owners should not fear setting goals or projections because there is absolutely no downside to doing so. Also, it is important to remember that goal setting doesn’t have to be only about revenue. It could relate to innovation, employee retention, service offerings, or anything that is important to enhancing your business.
What are Goals?
Goals are resolutions to achieve a desired result. Whether short or long-term, they provide a clear understanding of what the company is striving to accomplish. Setting short-term goals to reach related long-term goals is a key to success for most any business. Thinking of short-term goals as “stops along the way” to large goals can compartmentalize processes without losing sight of the big picture. Having goals gives everyday tasks more meaning and clarifies the reasoning behind company decisions.
Here are reasons why you should be setting goals for your organization:
Goals Provide Focus
When a company sets goals, it makes its priorities clear for everyone involved in the organization. The purpose of goal setting is to show employees what they need to focus on the most during the upcoming quarter, which then helps them to be able to prioritize their tasks. For managers, it helps them decide which major projects to focus on and how best to hand out the work to employees.
Goals Keep Everyone Motivated
No matter how much you love your job or industry, there are times when you just don’t want to go into work, or you feel like being lazy for a day or two. Part of the importance of goal setting in an organization is that it helps keep everyone motivated even in times where he or she may not necessarily feel like putting in much work. Although someone may not feel like giving 100%, they will if they know that there is some sort of award at the end of the tunnel.
Goals Promote Teamwork
In addition to keeping everyone motivated, setting goals also helps encourage people to work together. When everyone is working towards a common goal, they are more likely to come together to accomplish it. If there are group rewards in place, this encourages people to work together even more since they cannot earn the reward on their own.
Goals Increase Morale
When people go to work every day with no end in sight and no goals to achieve, it wears down on them emotionally. Everything starts to feel the same, and people just start going through the motions. However, goals help workers take ownership and pride in their work. When they achieve a goal that you set for them, it makes them feel good inside. That little bit of motivation can increase workplace morale significantly.
Goals Help You Measure Success
If you plan your goals the right way, it will help you measure your company’s success in ways that you never could if you had not set any goals. The SMART way to setting goals is a proven method that helps ensure your success. The SMART method is as follows: specific, measurable, attainable, relevant, and timely. For your goals to be successful, you have to be able to measure progress, and your employees have to be able to feel that they have a chance at attaining the goal. You can then judge progress and adjust goals as necessary.
It is incredibly important to remember that setting business goals will not ensure success for any organization. However, there’s also a lot to be said for not flying by the seat of your pants. Taking the time to look at your organization from a broader perspective will give you greater confidence in what lies ahead and how your organization will be able to optimize it. We can’t predict the future, but we can certainly plan for it.
