2.01 – Knowing Where You’re Going
Setting goals is one of the most important responsibilities of management. In small and start-up companies, the owner typically sets the overall purpose or vision of the organization and then develops goals and plans to achieve that vision. Owners and employees work together to set goals and create schedules for attaining them.
The Importance of Goals
As a business owner, you’re likely juggling numerous goals for yourself, your employees, and your organization. This can lead to stress and frustration as you try to prioritize:
- Should I focus on improving turnaround time first or finishing the budget?
- Maybe improving customer service is more pressing.
- And don’t forget to set aside some time for lunch!
Having too many goals can be as problematic as having none. This lesson will help you understand why setting strong, focused goals is essential for your success and that of your employees. It also provides guidance on communicating visions and goals effectively, ensuring everyone stays on track.
Goals Provide Direction and Purpose
Goals are essential for providing direction and purpose. If you can visualize it, you can achieve it. Goals help you see where you’re going and outline the steps to get there. The way you set goals can also impact their motivational power.
Knowing Where You’re Going
Lewis Carroll’s “Alice’s Adventures in Wonderland” offers a valuable lesson for business relationships. Consider the following passage where Alice asks the Cheshire Cat for advice:
- “Would you tell me, please, which way I ought to go from here?”
- “That depends a good deal on where you want to go,” said the Cat.
- “I don’t much care where -,” said Alice.
- “Then it doesn’t matter which way you go,” said the Cat.
- “- so long as I get somewhere,” Alice added.
- “Oh, you’re sure to do that,” said the Cat, “if you only walk long enough.”
It takes no effort to end up somewhere. Just do nothing, and you’re there. However, if you want to get somewhere meaningful and succeed as a business owner, you need to know where you want to go and make plans to get there.
For example, suppose your vision is to start a second dry cleaning store in a nearby suburb to grow your business. You have three approaches:
- Unplanned, non-goal-oriented approach
- Planned, goal-oriented approach
- A hope and a prayer
Which approach do you think will get you to your goal? If you guessed the planned, goal-oriented approach, you’re on the right track.
Why Should You Set Goals?
Here are the main reasons to set goals when you want to accomplish something significant:
- Goals Provide Direction: Goals create a definite vision – a target to aim for. This focus helps guide the efforts of you and your organization, ensuring that you’re all working towards the same objectives.
- Goals Measure Progress: Goals serve as milestones to track your progress. They help you see how far you’ve come and how much further you need to go to reach your vision.
- Goals Make Vision Attainable: Achieving a vision requires breaking it down into smaller, manageable goals. Each step you accomplish brings you closer to your ultimate objective.
- Goals Clarify Roles: Setting goals with your team ensures everyone understands their tasks and responsibilities. This prevents duplication of efforts and keeps everyone aligned.
- Goals Motivate: Challenging goals, known as stretch goals, motivate people by giving them something to strive for. These goals provide a sense of purpose and can alleviate the monotony of routine tasks.
What Makes Goals Effective?
Effective goals are directly linked to the owner’s vision and are essential for maintaining a competitive edge. The best goals:
- Are Few but Specific: Focus on a limited number of clear, specific goals rather than an overwhelming list.
- Are Stretch Goals: They should be challenging yet attainable, pushing the team to perform at their best.
- Involve People: Collaborating with your team in the goal-setting process ensures buy-in and shared commitment.
By setting well-defined and motivating goals, you can lead your team to success, ensuring that everyone knows where they’re headed and how to get there.
