Business Goals are the target or endpoint which any organization wishes to achieve in a particular span of time. Setting an appropriate goal is very crucial to any organization as it will help the employees to work in an aligned manner.
IMPORTANCE OF BUSINESS GOALS.
- Clear Focus:
Setting up of Business goals will give a clear focus to all the resources as where to reach after a stipulated amount of time. This will help in giving a clear vision to the employees about the tasks which are expected out of them.
- Increase profits/revenues:
Ultimate aim of any organization is to become profitable and increase revenue. Hence setting up of a business goal plays a very important role as these goals are established keeping in mind the growth of the company.
- Determine success
Setting up of a Business Goal will help any organization to determine its success. For any organization to be successful, realistic Business Goals are to be established and these goals should be completed within the defined timelines.
- Leadership management
Setting the Business goals will help the leaders/ team leads to monitor their resources effectively. As they will have a set parameter to measure the performance of each resource in their team.
- Evaluation of resources
Establishment of Business goals will help in evaluating the performance of the resources as it will keep the employees on a single page as what is expected out of them.
HOW TO SET BUSINESS GOALS.
Before setting a business goal every organization will have to keep many things in mind and do the proper analysis before finalization of the goals. Few things that are to be considered are:
- Swot Analysis:
It is the analysis which has to be done before setting up the goals. SWOT means Strength, weakness, opportunity and threats. Before establishing the goals, every organization should find out its strengths, weaknesses, what opportunities are available in the Market and what could be the threats.
- Market Analysis
Market analysis is done to understand the dynamics of the Market. It will help us understand the demands of the market so that any organization can accordingly set their business goals.
- Past achievement
Before establishing the Business goals every organization should consider their past performance to understand what went well, what was missing, what can be done better etc.
- Feasibility Study:
It is done to consider all the critical aspects of the proposed Business goal in order to determine the chances to success.
- Inputs from Resources
Resources should be involved while selecting the Business goals of any organization as they are in a better position to judge the situation from the ground level.
HOW TO MONITOR BUSINESS GOALS FOR SUCCESFUL COMPLETION
Regularly monitoring the progress is very important in order to achieve any Business Goal. We can monitor the same by following means:
- Regular Meetings:
Regular Meetings should be held to monitor the progress. In case resources are facing some challenges, those should be addressed regularly and a solution should be provided during these meetings.
- Set a Deadline:
Small small deadlines should be set to monitor the overall performance of the goal.
TYPES OF BUSINESS GOALS:
- Time based goals:
These are the goals which have to be completed in a set timeline.
- Performance Based:
These goals focus on the job roles and productivity of a resource. These goals help in measuring the performance of the employees of an organization.
- Process oriented goals
These goals focus on the efforts in a single direction. Here the focus is on the path and not the destination.
WHY BUSINESS GOALS FAIL:
Business goals are very important for any company so before establishing the goals the company has to make sure that the set goals are achievable. On many occasions organization is unable to complete the set goals. Few reasons for failure could be:
- Setting unrealistic targets.:
The Business Goals should be achievable so that resources are motivated to work towards it. Setting unrealistic targets will only demotivate the employees and will not result in anything.
- No regular reviews:
Regular monitoring of progress is very important for achieving any target. If the progress is not reviewed periodically, resources will not be able to know whether they are going in the right direction or not.
- Non-cooperation amongst the various departments of the company
Proper coordination and cooperation between the various departments of the organization is very important to achieve the set goals.
- Improper communication regarding the set goals/ No proper description of set goals
All goals should be properly defined and downloaded to all the resources so that there is no confusion amongst the employees and they are working together to achieve the goals.
- Giving up too soon/ negative thinking
Occasionally Business goals are failed because the employees give up soon thinking that the set goals are impossible to achieve and they stop doing any efforts. The employees should be motivated regularly and open discussion should be held to discuss the issues.
- Responsibility amongst employees
Responsibilities should be assigned to every resource so that there are no clashes and every resource is working towards achieving their assigned roles. In case of absence of responsibilities no one will be accountable to answer and there will be difficulties in attaining the defined goals.
COMPLETION OF BUSINESS GOALS:
On completion of Business Goals, there should be celebration and the involved resources should be awarded to keep them motivated.