A New Look at Goal Setting

Goal setting is an element of most every business organization. Goal setting is also used by individuals, teams, governmental agencies, and groups of all types. I started taking part in goal setting as far back as middle school. Goals have been a part of my life for many years.

After years, both individually and in the corporate world, of setting and pursuing goals, I have changed my view of goals entirely. I still hold firm that goal setting is a very valuable process, and one that everyone should engage with at various levels, but my views on setting and pursuing goals have changed.

Not a Destination:

I now prefer to see goals as an engine to drive improvement, reach potential, and support habit formation as opposed to purely a destination. When I say destination, I am referring to an achievement, an accomplishment, or a level of attainment. For years, I set goals to reach a certain level or achieve something. The problem with setting those type goals is that it often lead to disappointment, frustration, or discouragement. For whatever reason, if I failed to achieve the desired target, I experienced these emotions. Sometimes it was something I failed to do, but often it was something outside of my control. Other times, I met the goal but found myself unfulfilled at the achievement based on other variables as well.

The problem with outcome based goals is that variables come into play that we can't control. Outside influences impact our ability to achieve the target or reach the destination. The other problem with outcome based goals is that we can set the destination and not reach our potential. This factor happens when we don't set challenging enough goals. We limit what we do and who we become when we seek accomplishments or destinations that are easily within our grasp.

As opposed to these destination based goals, I have moved to habit forming activity based goals. For organizations, these type goals would be those key repetitive actions that team members would engage with regularly to drive results. For individuals, they would be the habit forming actions to drive identity and fulfill purpose.

For example, an organization would set a goal to contact 50 new prospective clients per week (action to drive results) as opposed to grow market share by 5% by the end of the year (destination). An organization would execute their PM program at 95% or better completion rate (action to drive results) each month as opposed to increasing sales by 5% (destination).

Individuals would set a goal of exercising 45 minutes per day (action to drive results) as opposed to losing 15 pounds (destination).

I know very well the old statement of "don't confuse activity with achievement". However, the best way to sustain results is to build healthy actions/habits into our day. Using goals as an engine to drive results as opposed to a destination to achieve will most likely lead to better results in the long-term and help us actually reach our potential.

Short-term goals

I have grown to prefer 90 day goals as opposed to annual goals. I encourage all organizations to consider whether their annual review process with 12 month goals really works for them. I have noticed an increased desire for feedback from team members, increased variability in what's important now (win), and a general decline in the overall effectiveness of the old annual review system.

Engaging quarterly goal setting and performance feedback coupled with short, monthly one-to-one check in discussions appears to be the most effective approach to having team members focus on key actions, to developing team members, to engaging team members, and to elevating performance within the organization.

Document

I have seen goals documented over 1/2 into the year (evaluation period) and have seen instances where they were never written down at all. It's hard to convince team members that the system of goal setting is valued with things are handled this loosely. It's also hard to properly evaluate or reward performance when goals are not clear.

Whether you have a formal IT supported system for recording and tracking goals and progress or use a note card, there is great value in writing them down! If you see value in the process, take ten minutes and document it!

Investment

Goal setting is not an administrative burden that should be dreaded at year end. Goal setting, when done properly, is the foundation for investing in your team members, your strategy, and your organization as a whole. It is the framework for developing your people, aligning focus throughout the organization, and building a culture within the organization. Goal setting and the associated communication of results can be a unifying factor to build a team culture, a spark to drive improvement, and a key strategic element to foster sustained results.

An organization or individual without clearly defined goals is merely seeking to just exist with no clear direction nor an engine to drive them. Employees are not motivated, not engaged, and are merely showing up to get paid until something better comes along.

Recap

Consider goals as an engine drive to results as opposed to a destination to achieve. For organizations or individuals, goals are those actions that drive habits, form identities, and ultimately lead to purpose fulfillment. Goals help us reach potential, develop others, and build culture.

When intentionally and thoughtfully pursued, goals can be a powerful driver in success for organizations and individuals. Maybe you and/or your organization should take a look at your process to make sure you are getting the most out of goal setting. It's not a nice list of objectives to share with your Board, but rather a key part of your strategy to drive the organization.