You may have general ideas, however once you return to the daily operations of the business it’s likely your ideas gets buried deep in the demands of the day-to-day.
Many leaders feel as though they work hard both in and on the business and yet they do not achieve the results or the work life balance they need. Often, for a business leader the key reason is they haven’t dedicated the time to think clearly and strategically without interruption on what exactly it is that they want to achieve.
An important step in defining your business and personal goals is to have a clear vision of what your top priorities are, then outlining the results you want to achieve within a certain amount of time.
In New York Times bestseller What They Don‘t Teach You at Harvard Business School, Mark McCormack shares an interesting study that was conducted in 1979 on Harvard MBA students revealing the real impact of goal setting. He asked students whether they had clear, written goals for their future and if they made plans to accomplish them; 84% of students admitted they had no goals at all, while 13% had goals that were not written down. In fact, only 3% had specific goals in writing.
When interviewed 10 years later, the 13% of students who had goals were earning on average twice as much as those who had never established clear goals. However, the 3% with written goals for success had salaries that were a staggering 10 times more than the other students put together.
Ultimately, identifying effective goals and setting a strategy to achieve them helps leaders organise resources, streamline knowledge acquisition and raise motivation, particularly on long-term projects and objectives. Whether you‘re a business leader, a top athlete or a high achiever in any other field, establishing goals provides the focus needed in order to outperform.
Putting goal setting in place to move the business forward
An example of using goal setting to move the business forward is in a recent case study with TEC member Annie Flannagan, the CEO and Founder of Better Business Basics (BBB), which offers accounting and financial services to a range of organisations throughout Australia.
Working in such a competitive market, Annie learnt early on that the company would need to invest heavily in internal processes in order to succeed. To do this, the company approached the goal-setting process as a set of scales, divided between the front-end user experience and the back-end processes within the organisation.
“We see it like an old-fashioned set of scales – those two must be in balance,” said Annie.
‘Whenever we look at setting goals at the front-end, we create a reciprocal set of goals for the back-end.’
‘All businesses have that, but for use they have to be in balance, because if they are not, we end up with either clients that aren’t being fulfilled or employees that aren’t being fulfilled.’
This has also required a unique leadership approach from Annie, especially around the formulation of company goals and strategy. By putting these processes in place, the company has been able to stay flexible and respond to organisational challenges.
‘If you look at strategy, crafting the strategy is one thing, the delivery of the strategy is the bit which needs to be in balance,’ said Annie.
‘It’s about having the right combination of allowing creative thinking, working out what is not necessary, writing your goals down and then focusing to get them executed.’
For a fast-growing organisation, having multiple perspectives on the development and implementation of company processes around goal setting has been invaluable for developing future strategy.