setting business goals

How To Set Quality Business Goals

2 MIN READ

Goal setting in business is the holy grail of success. As they say, what gets measured gets improved. If you can quantify the current performance of you and your team, you can then begin to track how things are improving or diminishing over a period of time. That’s where Performance Goals come in. Not all businesses operate in the same manner, so not all Performance Goals will be equally suited to all companies. 

When you’re setting goals with each member of your team you need to understand the type of goals that will be most helpful for creating accountability and enhancing performance. 

setting business goals

“Reduce your plan to writing. The moment you complete this, you will have definitely given concrete form to the intangible desire.”
Napoleon Hill

Setting Lag Goals

Lag goals are usually results-oriented, meaning their achievement comes directly from your routine business activity. Lag goals are easy to measure but not as easy to improve or influence. These goals target outcomes such as the number of sales made or the amount of revenue produced. 

Setting Lead Goals

Lead goals measure what is actually being done in the here and now. They are easier to influence or improve because they deal with immediate progress and show the likelihood that you will reach your aims.

To put it simply, the difference between lead goals and lag goals is the difference between counting the number of workouts you do and counting the number of kilos you lose. The workouts are directly within your control, while the weight loss is something you cross your fingers for in hope. 

When you’re setting your business goals, be clear on the difference between lead goals (which target your daily and weekly routine activities) and lag goals (which target the results or the output of that activity).

 

Goals Should Be Countable

Performance goals are lead goals so they must always measure countable, finite things. Tracking subjectivities like feelings or experiences is best done using survey ratings, or by tracking a tell-tale action at work.  

Quality Goals Solve Problems

Performance Goals are most valuable when they are focused on solving specific problems in your business such as improving your sales, revenue, accuracy, and customer satisfaction.

Direct Your Business Goals Towards Your Company Mission

Make sure some of your Performance Goals relate directly to how you’re going with fulfilling your company mission and vision.

Track Progress Of  Your Achievements

Your Performance Goals should also track your progress towards keeping your company promises to your staff and also your customers. 

Make Your Goals Sustainable

To make your Performance Goals sustainable, set up routines to track and measure performance, then routines to review the data. 

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