Welcome to part 2 of How to be proactive in business. If you missed the first half, you can catch up here: http://www.businessstrategiesfortradies.com.au/blog/2017/10/8/how-to-be-proactive-in-business-part-i
Now... it’s time to get SMART with your business!
Set SMART business goals.
Setting clear goals for your company is a key business performance strategy. They should serve as the foundation of your original business plan and the compass for your organisation as it moves forward. The most effective goals create clarity of purpose and outline objectives to strive for.
Let’s get SMART using the following process to set the right goals for your business.
To be practical, business goals must be clearly defined. The easiest way to make them specific is by answering the basics of “how”, “who”, “what”, “when”, “where” and “why”.
Creating a measurable business goal means including a specific number. Perhaps it’s a dollar amount, a percentage or another form of measurement, it’s a number based on what you hope to accomplish. Use questions like “how much?” or “how many?” to set a measurable business goal. Developing metrics around a goal helps you understand your progress and communicate your performance.
Ensure priorities and goals are agreed-to beforehand. Getting team members to understand and work towards your goals helps create strategic clarity.
Business goals must be attainable in terms of your abilities and financial situation. While “increase profits by 50 percent in two months” is a wonderful aspiration, if it is not realistic it will not be a helpful goal. Likewise, make sure business goals that you’re setting fit your budget. If you can’t dedicate the requisite resources to the goal, you may want to reconsider if it is the right one.
Business goals must be tied to a defined schedule. A goal isn’t effective if there is no “end date” by which it must be achieved. Set a date for when each milestone can be realistically achieved, or a timeframe during which you want to actively pursue a goal.
Long-term vs. Short-term Goals
Long-term goals should reflect your overall business performance strategy and set the direction your company should move. Keep in mind that too many long-term goals can cause a lack of focus so keep them limited. Additionally, break down long-term goals into a series of shorter-term goals to provide clearer direction, motivate employee performance and gauge progress.
Short-term goals should be clear and specific so that all employees clearly understand objectives and priorities and everyone is on the same page. Short-term goals should also help harness employee enthusiasm and energy by encouraging timely deadlines and key milestones to stay on track toward long-term goals. Both long-term and short-term goals should be easy to understand and to communicate to employees.
No matter how SMART your business goals are, they are useless if their success isn’t measurable. Revisit your goals regularly and assess objectives. Are they being met in the time frame outlined? Additionally, look to see if your goal setting is achieving the following:
1. Motivating the appropriate employee responses and behaviours
2. The right initiatives and activities
3. Moving the company towards your vision for the future
Why not take advantage of our informative free no obligation consultation where we can discuss a proactive mindset and goal setting.
With you in every success,
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