Focus:  Setting Goals & Objectives

The process of setting Goals and Objectives for your business begins with your Strategic Plan. The Strategic Plan sets the direction of the business and the road to success. The business goals support the strategic direction and the objectives that you set for your business will support the goals and will state how you will attain those goals.

1. Goals can be established for many categories    
of a business. Examples of  goals:
a.       Financial Objectives such a business revenue growth 
and profitability

b.       New product development
c.       New market development; market share
d.      Customer Satisfaction
e.      Operational & technological improvements
f.       Community & social involvement

g.      Maximizing shareholder value
h.      Employee hiring, training, communication, development
i.        Mergers & Acquisitions

j.        Business Exit Strategy- Sale

2. Objectives must be set for all levels of an organization & must align between departments.  Objectives tied to company goals need to be given to departments, teams, and individuals. Objectives will be different for managers versus non-managers. It is important that objectives reflect the level of authority and accountability for that individual. Department objectives must not conflict.

3.     Everyone knows the acronym of SMART when referring to developing Objectives: Specific, Measurable, Achievable, Realistic and Timed. Let’s add “Clear Accountability” to the list. It is critical that employees know who is accountable for what, especially if that “who” is themselves. Objectives also need to be tied to a goal or why have the objective?

4.     Establish Monthly, Quarterly, Annual Objective Reviews. Objectives need to be made real and relevant and one way to ensure that focus is to establish monthly, quarterly and annual reviews and status of the achievement of the objectives. If objectives are not on schedule, plans should be made for achievement.

5.     Objectives are critical in establishing a Pay for Performance Culture. Make the objective setting and review process significant by tying performance reviews to the attainment of objectives. Performance reviews should be the basis for establishing annual salary increases and bonuses.