The importance of Goal Setting

Why do we set goals?

In business we set goals to make sure the business is focussed on what it needs to achieve in order to support its mission, vision and strategy, and give value back to its shareholders.

Similarly in life we also need to set goals to make sure we are focussed on what we need to achieve, to take us in the direction we need to go in order to fulfil our life’s purpose, and give value back to ourselves in terms of happiness.

However a business can exist without goals and strategies, but it won’t be hugely successful or achieve anywhere near its potential. Similarly we can also exist without goals, a direction or knowing our purpose in life, but we will never realise our true potential or achieve anywhere near what is possible for us.

So setting goals gives us direction and focus. When we know what we want, for ourselves or our business, we can go and get it.

How do we set goals?

Business goals are generally driven from the mission and vision statements which form the strategic direction of the company. This in turn gets broken down into a series of goals which collectively will deliver the strategy.  SMART goals are written for the business, departments, teams and drill down to individual goals in terms of targets or some form of measurable KPI which are used in performance reviews at appraisal time. Well that’s the intention anyway, but the very thought of appraisals gives me a shudder down the spine as I recall the incompetence of most of my previous managers in the corporate world (with the exception of those reading this of course!).  

So if everybody achieves their goals and delivers to their KPIs, the various teams and departments achieve their goals and bingo - the company strategy is delivered. Well that’s the theory but it’s never quite as simple as that.    

The only problem with this process of synchronised goal setting up and down the business is that people are involved, and we are unpredictable beings. We have a life outside of work, we have limiting beliefs and working with others requires social interaction, and egos can get in the way and conflict can occur. How a business can help resolve all this will be the subject of another newsletter.

In your personal life, you have more than just work or business goals to focus on. You are a ‘whole’ person and to get that elusive life balance, you need as much energy and focus on the other areas of your life too. As in the above process, life goals should similarly be drilled down from our life’s mission or purpose to identify out long term and short term goals. For those who know what their purpose is, life is made so much easier as decisions and choices become simple to make as they either fulfil this purpose or not.  For others it can be a little more difficult as without any direction or focus, decisions and choices are not so clear cut – but then again if you don’t have any direction, does it really matter what decision or choice you make anyway, as either one will take you somewhere and if you don’t care where you end up……

For those without a clear life purpose, the Life Wheel can give you a quick MOT on where you are right now and some clues as to what needs improvement. From there goals can be set in your personal life and eventually a purpose can be identified. Again, the Life Wheel and identifying life’s purpose is a newsletter topic for another day.

Back to goals and how we set them. Once we know what we are after we need to build it up into an inspiring and motivating goal. For life goals I prefer to use the acronym SMERTIE:

Specific – Be clear about exactly what you want in detail (and not what you don’t want)

Measurable – How you know you are progressing and if on track  

Evidential – What shows you what you’ve achieved and tells you when the goal is reached.

Responsible – Be sure that the goal is down to you to achieve and take responsibility for the outcome

Timed – The specific date it will be achieved

Inspirational – Your motivation behind the goal, the inspiration to get started

Emotional -   What the goal will ultimately give you and how it will improve your life

If you don’t have goals you will not have direction, and you will drift along wasting time, money and energy chasing things you only think you want, and when you get them you will be surprised at how they don’t actually make you as happy as you thought they would – sound familiar?  It’s because you haven’t worked out what it is you really want.

In business, especially in the current economic turmoil, you cannot afford to waste resources going in a direction that will not make you money. Your goals need to be as clear and precise as ever to ensure the focus of everybody in your business is on the same outcome.

back to newsletters, hints and tips