Setting Organizational Goals and Targets is the 4th Step in implement the "10 Essential Steps to Organize Your Business.
What direction is your business going in?
Speak with your accounts manager, ask for the information down below,
- What is the profit target for this month?
- How much turn over or sales or revenue is required to meet the profit target?
- How much have we grown over last year on revenue & profit?
- Top 10 expenses that overshoot compared to last year?
Both you and your accounts guy can expand this list with many more questions pertaining to company performance.
Questions and information that are thrown show where the organization is heading towards.
Taking Action for business organizing
Setting organizational goals and target is the 4th step in organizing your business. You started with business information gathering, leadership formation and done the mind mapping. If you had done with first 3 steps, you can easily decide on the organization goals for the year or next 3 years or more.
Tangible organizational goals
Are like Targets, Annual Operating Plan, Budget. Target tells your business and team that what you want to achieve for each specific business function within a timeline. AOP (annual operating plan) give the plans for a year in advance. Budget reveals, what is actually achieved against the plan as well as deviations.
Intangible organizational goals
Organizational goals must include intangible business results also. Customer satisfaction, brand name and goodwill, employee and channel partner happiness are examples.
In addition to regular business performance parameters, entrepreneur’s stake like wealth creation, business valuation are also to be included.
Benefits
Quite a large number of businesses miss this action. Benefits of setting organization goals are,
- Focus your efforts to get higher results with lesser efforts.
- Stake holders, leadership and team have the same focus point for achieving same result. When focus is single, efforts get synchronized. Synchronized efforts have exponential effect. It ensures team work with harmony.
- Organizational goals reviews what is planned, achieved and deviations. This helps you to initiate corrective and preventive action. Yu can plan your actions and strategies better based on the learning from every month, week, day.
- This brings self-discipline for the work force. As every member knows what is expected from him, his team and his division.
Goals and targets must be extended to every business operation. Revenue verticals, sales, expense controlling, price negotiations, employee performance all to be taken care. Infra and technology upgradation, employee training, brand building, market penetration etc. to be included in goals as well.
Goals and Targets tells you and team about what to be achieved in coming months and years.
