Setting Objectives with Goals
As the year comes to an end, companies and organizations start to evaluate how they performed for the year and what they need to do to make next year better.
The planning for the new year starts with objectives. What is it the company needs to do to be successful in the upcoming year? Reduce costs. Increase sales. Bring new products to market.
Objectives are only half of the work though. Too often, I see companies set objectives above but never publish a goal for the objective.
Can I reduce costs by $1 and be successful? $100 million? What?
How much do I need to grow sales? What part of the company’s market needs to grow in sales?
How many new products need to hit the market? How much revenue to new products need to generate?
Without answers to these questions how are people suppose to know if they are being aggressive enough during the year? Maybe we only need to reduce costs by 5% or maybe it is 25%. The answer to this question will inform how you go about reducing costs, growing revenue or bring new product to market.
As leaders, we need to set goals/targets for each objective. Then we need to give updates during the year to understand how we are progressing towards these objectives.
These isn’t new or earth shattering. But it is something I see quite a few companies neglect.
What are your objectives for next year? What is your goal for that objective?