Setting goals is an important part of a company’s success. This article explores how to set the right goals for your business and what you can achieve if you don’t reach them.
The “importance of goals in an organization” is a goal that many companies have. This helps to motivate employees and also gives them something to work towards.
Why is it necessary to define corporate objectives?
Goals are effective because they direct attention toward obtaining desired results. Profitability is one ideal consequence in business. Making sales and properly controlling expenditures are both necessary for profitability. Employees want to know what their bosses expect of them, and objectives give that guidance. Goals channel brain effort toward discovering answers, and the human brain has incredible problem-solving ability.
Business objectives should be detailed, quantifiable, realistic, and timely, whether they are used to guide the company’s course or to motivate employees. Let’s return to the profitability aim we discussed before. “XYZ Corporate will be profitable,” for example, is not a particularly clear company aim. What is the return on investment? Is there a sufficient number of customers to do this? When will the business be profitable? How will you determine whether or not the business is profitable? “XYZ Company will achieve a 10% net profit margin by the end of 2014, based on sales of 100,000 units,” is a better approach to describe that aim. It’s now feasible to plan action steps to achieve that objective and, if required, change your progress toward that target.
Management may sometimes try to shift the direction of a business by pushing personnel to achieve greater heights. In their book “Built To Last,” Jim Collins and Jerry Porras discuss “big, hairy, audacious goals (BHAGs).” On May 25, 1961, then-President John F. Kennedy declared an ambitious aim of getting an American to the moon safely by the end of the decade. On July 20, 1969, the aim was accomplished. No one understood how to make it happen in 1961, but the desire motivated many to strive toward a positive conclusion. Many people’s brainpower was directed into finding a solution.
The accomplishment of a goal is a cause for celebration. Goals that support the company’s objective are established, and personnel are rewarded for a job well done. Setting goals and celebrating successes may help even a solo business. What are the desired objectives you’d want to achieve? Now is the moment to set objectives in order to achieve those achievements.
Do you have a concern concerning your small business? Arlene may be reached at [email protected] or by leaving a comment below!
[ The World Newspaper’s weekly small business advice piece, Down to Business, was first published online by the Oregon Small Business Development Center Network and is reproduced here with permission.]
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