Part of the business planning process is writing business goals and objectives. A goal is a term that we’re all familiar with but the ability to achieve business goals, in a measurable way, is quite a different story.
Goals should be tied to business strategy and the strategic plan which is written to help the organization achieve its mission and vision. The goal development process looks at where the organization is trying to go and maps out the necessary steps to get there. Goal writing does not have to be overly complicated but it does require commitment and discipline to write and follow through to implement and accomplish tactical steps. Business goals need to be thought through and be thorough enough to achieve desired results. Many organizations use the SMART goal model.
SMART Goals are:
Specific
Measurable
Attainable
Realistic
Timely
Organizational goals should be written around activities that will help move the organization forward – increasing revenues, decreasing costs and improving the customer experience.
Examples of SMART Business Goals:
1. Reduce overall budget costs by 10% by 20xx
2. Increase market share by 5% by 20xx
3. Increase revenues by 20% by 20xx
4. Increase customer satisfaction by 5 pts by 20xx
If you take one aspect of budget costs, which could be supply costs, you can write SMART goals to reduce them. The goal development process includes a discussion with the appropriate people and should answer the questions: who, what, when and how. These four questions help to facilitate a discussion and thought process that flushes out the details needed for writing effective goals.
Once the questions are answered a goal setting worksheet can be created as an easy visual of the goal plan.
Now let’s look at a couple of these goals and put them in a goal document.
One of the most important things when writing goals is the follow-up and completion of goals. A goal document is no more than a piece of paper if there is not a person held accountable for achieving those goals. For this reason, it is important to use the document to manage the performance of the employees assigned to complete the tactical steps and should also be part of the annual performance appraisal process. Managers should use this as a guide throughout the year and reinforce deadlines outlined in the document.
A structured performance management process, which includes rewards and recognition for employees, is critical to ensuring goal completion. An organizations’ ability to write and accomplish annual goals is critical to achieving corporate objectives. For a link to this document, click here.
Does your organization write annual goals?
If you are interested in learning more about managing employee performance, check out our new on-line Employee Performance Management class. This is an inexpensive way to train you or your managers and we offer a money back guarantee so you have nothing to lose. Use coupon code smart20 to get 20% off. Click here to learn more!
photo by: Brintam
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