Setting Goals That Pay Off

By John A. Haas
Management Strategies Group

Even in these fast-paced times well-run companies have learned the value of planning and goal setting. It's a disciplined way to assure you're thinking about the future and forging a compel-ling path to take you there.

Goal-Setting 101

Strategic planning requires answering three questions:

1. Where Are We Today? - Conduct an external analysis (industry, environment, etc.); internal analysis of your organization; and competitive analysis.

2. Where Are We Going? - State your mission or ultimate vision. Set long-term goals that build on competitive strengths and core competencies and provide the financial strength needed to thrive. Assure the organization is aligned to pursue those goals, and set measurable annual performance goals supported by budgets.

3. How Do We Get There? - Translate specific long- and short-term goals to business unit and functional levels and create action plans with specific steps and timetables.

Be Effective, Not "Right"

Experienced planners know there are several possible "right" paths that can be taken. Here are some helpful goal-setting guidelines:

• Budget to plans, don't plan to budget.
• Set realistic, stretch goals rather than blue-sky giant leaps.
• Take the time to assure key stakeholders are "on board."
• Strive to beat your targets and reward success.
• Communicate goals widely to assure mutual consistency and coordinated effort.

Making Plans Happen (or Why Things Go Wrong)

Some keys to increasing the odds of achieving goals:

• Make sure goals are measurable, credible and that progress is easily tracked and reported.
• Realize that to be effective, people need to know what they must do specifically to contribute. Thus, corporate or divisional goals must be translated into individual/unit goals.
• Individual goals must be within jobholder's ability to directly influence results.
• Action planning, with timetables and resource requirements, is where critical, practical thinking is needed to make things happen.
• Performance-based rewards directly tied to specific goals will provide needed "teeth" and help focus individual and team effort. Here's the real payoff!

October 1999 - Volume 9, Number 4