Business Goals
The first step to strategic planning is to set achievable goals. Step two, design strategies and tactics to achieve your goals. If your organization does the planning, but falls short on implementation, it may be time to try the SMART approach.
The SMART system was first introduced to the business world in the early 1980s. Although the acronym’s letters have been associated with different meanings over the years, they’re commonly defined as goals that are:
Specific. Goals must be precise. If your strategic plan includes growing the business, your goals must then explicitly state how you’ll do so. For each goal, define the “5 Ws”.
- Who is responsible? Name the team members responsible.
- What exactly will they achieve?
- Where? What division, products, geographic location?
- When? Within six months? A year? Set short- and long-term expectations.
- Why? Clearly define why the goal is set and its impact on business so everyone understands the reason driving it.
Measurable. If you don’t measure it, how will you know you achieved it? Setting goals is of little value if you can’t easily assess your progress toward them. Pair each goal with one or more metrics to measure progress and success. This may mean increasing revenue by a certain percentage, expanding your customer base by winning a certain number of new accounts, or something else.
Achievable. Unrealistic aggressive goals can crush motivation. No one wants to put time and effort into something that’s likely to fail. Ensure your goals can be accomplished, but don’t make them too easy. The best ones are usually somewhat of a stretch but still doable. Rely on your own business experience and the feedback of your trusted managers to find the right balance.
Relevant. Make sure your goals will move your business forward and challenge your team. Focus on achievable goals that will deliver results. Goals should directly and clearly support your long-term strategic plan. Sometimes companies can be tempted by “low-hanging fruit” — goals that are easy to accomplish but lead nowhere.
Timely. Set a deadline for each goal. Doing so will motivate those involved by creating a sense of urgency. Also, once you’ve established a deadline, work backwards and set periodic milestones to help everyone pace themselves toward the goal. Regularly remind everyone of the goal and report progress to the group regularly so they see how far they’ve come and how much further they need to go.
Additionally, make sure you are continuously assessing your goals for relevance. Once goals are achieved assess the next step. Do we continue on to something else or reset? Do we set additional goals? What worked and what didn’t. And then start strategic planning for the next phase of business.
Need help? Ciuni & Panichi, Inc. has been helping businesses be successful for more than 45 years. To learn what we can do to help your business, contact Dan Hout-Reilly, CPA, CVA, Ciuni & Panichi, Inc. Accounting and Audit Services Senior Manager at 216-831-7171 or by email here.
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