On Goal Setting: Paving the Path for Tomorrow, Today

There is a saying that goes something like this, “Before you know where you’re going, you have to know where you’ve been.” Very wise words, and very truthful, but I’d like to add to that statement, “Before you know where you’re going, you better plan ahead.” The last time I took a vacation, I planned out the path, and I made alternate routes incase the main route was blocked. Goal setting is nothing different from planning a vacation, or planning anything really. It takes time, focus, vision, execution, and S.M.A.R.T.S.

Time is money, this is a true statement most if not all business owners and managers will agree upon. So if this is true, why waste it to being a quarter into a new fiscal year and still not having a plan put in place. Let my dispel some a myth, an operating budget is NOT a plan, nor are they goals. To properly formulate an operating budget you need to first set the goals you wan to attain. How can you properly allocate capital if you have direction? When you plan for a vacation you save and allot the money to be sure you have everything covered. Goal planning should begin in July/August, or 4-5 months prior to the beginning of a new fiscal year. This will reserve time for brainstorming, formulating, Board approval (if necessary), and implementation through the budget.

For goal setting to be effective you need to devote energy and focus on the task. Haphazard goal setting will lead to haphazard results. Do whatever it takes to gain focus. Many entrepreneurs fail to understand the concept of retreat. Even if you are a one-man shop, you need time away to gather your thoughts, recoup your body, and open the doors of your mind. That is where innovation and imagination are given free reign is in retreat. Try this exercise, get away for 5 days, and leave behind the work phone, laptop, and anything else tying you to your company. Find someplace that relaxes you. Take the first day to detoxify your mind, and then take the next 3 days to become a free thinker. Grab a pen and paper and write down every idea that comes into your mind. No matter how ridiculous. Be sure this is done on un-lined paper no rules, no guidelines, and no restrictions. On the last day, prepare yourself to come back fresh, meditate. When you get back to your company take a look at the paper and begin to eliminate the ideas, until you reach those that are S.M.A.R.T.S (later in the article).

Vision is important in goal setting. For without vision we’re lost. You have to be looking out into the horizon, beyond the sight of employees and competitors. To find your goals you have to look forward and not behind.

Finally we reach execution. Execution is a fairly simple process; many people make it too hard. With each goal there should be a set of action plans. These are simply steps needed to attain the goal. For example if your goal is to increase sales by 3% in a certain market, then the action steps would be to increase the effectiveness of sales reps in that area through training. Step two could be to increase marketing by adding another advertising channel, and attaining better brand recognition and exposure. Executions then leads to you walk out the steps necessary to attain the goal(s) you have set.

A brief word on S.M.A.R.T.S this is an acronym that many people recognize but, I have added another letter. The first S stands for Specific. Your goals need to be specific, general goals do not push you to achieve success. The M is Measurable, without a way to quantify your goal(s), you have no idea if you are making progress. The A is for Attainable, goals that can not be achieved are goals you don’t want to set. R is for Realistic, this means your goals should line up with your company and be within the realm of possibility. T is for Time Orientated, not putting a limited time frame (6 mo. 1 yr, 3 yrs, 5 yrs, 10 yrs) means you can reach that goal whenever and it leads to laziness. The final S is my own addition, it stands for Stretch. Goals should stretch your thinking and ability. Making goals that are too easy to achieve will lead you no where. Yet setting a goal that is just at the tips of your fingers while you’re standing on your toes will cause you to achieve greater then that you thought you could. It pushes you, your company, your employees, and it is the stretch that leads you into greatness.