Company without goals? Impossible, if you believe the large number of popular science and specialized books about management topics. Goals, target agreements, and bonus systems connected to target achievement are all part of every organization.By aligning company goals with employee (or personal) goals, an organization can be more productive throughout the year, including the holiday season. Goals are essential to your development and success.
“Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion.” – Jack Welch, former CEO of General Electric
Employee motivation and organizational performance
Goals increase motivation and work performance. Using goal-setting techniques can increase workers motivation and performance.Individual work goals can increase performance, whether assigned by management or chosen by the worker. Even when monetary incentives are already high, complementing those incentives with goal setting can improve performance.
Goals align focus
Goals allow us to focus our attention and activities. The big picture is sidelined and often forgotten. Goal setting helps you align focus with behavior because you get feedback on your progress. The actions you take or avoid offer clues about your values, beliefs, challenges, strengths and weaknesses which allow you to course correct as necessary and reset your goal achievement strategy (and subsequently, your focus).
Goals sustain momentum
Seeing progress is addicting. No seriously, it’s literally addicting because of the dopamine released in your brain after attaining a reward. Just as a snowball grows in size as it’s rolled down a hill, momentum works the same way. Just think of the last time you were really “in the groove” where you said to yourself, “I’m on a roll!” That’s momentum. Momentum is built by ensuring that everything goes as planned. Therefore in business, momentum can be expressed as momentum = production x motivation
Goals improve employer/employee communication
Nothing drives an employee madder than when their “out of touch” boss sets a ludicrous goal. However, at the same time, goals are a valuable tool to encourage communication, cooperation and productivity for viable and smart goals. By setting a reasonably tough goal, as the founder, you can also inspire healthy competition between team members, encouraging them to work smarter and and put their best foot forward.
Goals gives you a way to track progress
Goals are a really powerful way to track your progress and personal growth in an organization. By regularly sitting down and looking at how close you are to achieving your targets or how many targets you’ve met, you can see in what areas you’re succeeding and where you need a bit more work. You’ll also be able to see what actions are paying off the most based on how quickly or easily you’re achieving your goals.
Goals sustain future growth of the organization
Goals are powerful they can focus attention on achieving desirable outcomes. In business, one desirable outcome would be profitability. Whether business goals are to set company direction or provide motivation, they should be specific, measurable, achievable, and timely. By creating company-wide goals, a business owner can ensure the company can survive without their daily presence. A sustainable business can only survive when the owner knows that he cannot micromanage everything. Business goals matter. They help ensure that a company understands the necessary steps needed to get to wherever they want to go. So, think carefully about what kind of business you want to build, and set goals accordingly. It is one of the most vital steps you can take to create a successful business.