Can you guess what is the one and only thing that can allow you to achieve more in your business or even personal life? Yes, you have guessed it right. Goals are the fuel to the engine of your performance because they let you see where you are headed and how you can make it possible to get what you want. While solely talking about an organization, goal setting is something that allows the employees and higher management to decide where the company should be headed in the next quarter or 1 year and how each of the team members can contribute in reaching to those goals.
Importance of Goal Setting:
It Helps Motivates Employees:
Whether you have hundreds of employees working for you or just a dozen, it’s always a good idea to set goals for them. These goals will not only keep them motivated but they will also provide a clear guideline about where the company is headed and how they can actually contribute to taking the company to the next level. The power of achievement is something that forces employees to efficiently working and better performance.
Goal Setting Improves Teamwork:
Teamwork is something that every organization hopes to achieve. When everyone in the company or at least in one department works as a single entity, there is no hurdle that can keep that business success continuously. Team work is so important that most of the underachieved companies get to the result that better teamwork could have resulted in better performance for the business. Goal setting is important for the business from the point of view of team work because it allows the employees to work with each other in order to achieve individual set goals for each department.
It helps seeing where you came from and where you are going:
Someone said that without your past, you have no future. When you set goals for your company, it allows you to see where you company was 5 years ago and how much success your business had in the past. This way you can evaluate the percentage of progress in your company which not only helps you set achievable goals for future but it also keeps you motivated for trying to achieve the goals as well. This is a great tool as well to check for mistakes or weaknesses that kept you from achieving required progress in the past and helps you eliminate weak links in company policies or even hierarchies to achieve company goals.
It Helps with Business Expansion:
As a business owner you can understand that when you want to expand your business or allow a new partner in the business, you need to give financial proposals and future plans to them. These are the elements that motivate or attract new clients to your company and without goal setting, this can’t be done. Goals that you set for your organization help future business partners to see where your company is headed and why it’s a good idea to be a part of the wining team.
Goal Setting Helps Accountability:
When there are no goals set for your organization, it’s not only hard but actually kind of impossible to see if you are heading to the right direction and if your progress is at the right percentage. On the contrary, when there are definitive goals in your company, accountability is easier than ever. Not only that you know the steps that you need to take to achieve the goals but it allows you to see where you made a mistake and why a particular goal was not achieved in the past.
Guidelines for Goal Settings in Business Ventures:
If you own a business, there is no problem convincing you about how important it is to set goals for your organization. But, the more important thing here is to evaluate if the decided goals are actually achievable. It’s very easy to see your company as an entity that has the power to increase sales by 20% in next quarter but a thorough analysis will determine if it’s possible to achieve that percentage or if you should keep it to 10-15%. Here are some simple guidelines for goal setting;
- Before setting the goals, it’s important to actually have a survey done on your business. This will allow you to see your strengths, weaknesses and vulnerabilities. This survey will also help you to check the departments that are doing well and the ones that need improvements.
- Another important part of goal setting is to analyze the market where your company belongs along with your competitors. There should be couple of other companies that offer same products or services as your company which means if they are doing better in the market, you should be checking their operations as well as analyze the market to see where it lies in next 3-5 years.
- Asking your employees to actually participate in setting goals for your company is a smart idea. Many companies do this and the key benefit here is that employees are the ones who do most of the work and they understand organization’s weaknesses and strengths better than higher management. Here it also needs to be decided about who will actually take part in setting the goals i.e. higher management or middle managers.
Free Goal Setting Templates
Here are 27 Goal Setting Templates for you to download for free.