9 out of every 10 start-ups failed. Many of them made a great start with their innovative product and caught the attention of the community. However, they failed to sustain in long-term. The most important factor for effectively driving your business to success is setting your business goals. Defining your goal is very important not only for building a strategy but also for assessing the business progress. Setting realistic and clear goals enables the organization to effectively drive its strategy performance and result evaluation.
Setting SMART goals
When setting goals for an organization, the top-level management should avoid setting overly ambitious goals because they have the potential to make a serious dent in the company’s finances, productivity, and employee morale. At the same time, an overly modest goal would be easily achievable but it wouldn’t amount to the needful progress of the business. Realistic goals need to be SMART (Specific, Measurable, Attainable, Relevant and Time-bound). Defining a business goal of increasing market share of the product from 10% to 20% in the period of 2 years is a more effective and clear goal as compared to saying that business wants to grow its product’s popularity in the market.
The former clearly defines the achievable and relevant target for the product growth and puts forward a quantifiable parameter to assess the progress in a time-bound manner. This specific goal is instrumental in defining the strategy that is to be pursued and the employees are clear about the goal that they would be working towards. The latter goal is so vague that it does not bring clarity to the employees as to what the defining parameter for growth pursued by the top management might be.
Communicating the Goals Effectively
Setting a SMART goal is just building a base for pursuing the organizational strategy, effective communication is required to build the holistic framework of the organization. SMART goals only hold importance and relevance when they are effectively communicated to the employees and stakeholders so that they can align their specific goals and activities with the business objective. In the increasingly complex nature of current organizations, Corporate Governance and structure play a very important role in understanding the set roles of every employee which facilitates a better understanding of individual work responsibilities.
The clear understanding of smaller and specific goals involves clearly stating to the person WHY is he required to do a task, HOW it will help the organization in achieving its objectives, WHO is responsible to comply with it, defining WHAT the goal is, and by WHEN it needs to be completed.
Track your goals
Effective setting and communication of goals do not guarantee business success. Tracking the goal’s progress and constant intervention with the employee reinforces the management and employees’ focus on the goal and helps to further develop effective measures and actions to speed up the progress or avoid an undesirable outcome.
VComply provides an easy to use interactive platform for organizations to effectively communicate and manage the specific goals of individuals in order to align with an overall objective and track the fulfilment of the objectives by its employees.
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