With a new year comes new opportunity — and that means it's time to look ahead and set intentions and objectives for the future.
But studies indicate that 80 percent of people don't achieve their New Year's resolutions, with a majority losing their steam by the end of February. How can managers and business owners best ensure that employees (and themselves) reach their goals? The key lies in setting goals effectively and in an achievable and attainable way.
Setting goals in anticipation of the new year is more than just a time-honored tradition. The exercise can also lead to long-term consequences for businesses and employees; research indicates that organizations that practice systematic goal-setting experience a 39 percent increase in productivity. Significantly, when upper management supports goal setting, productivity can increase by 57 percent.
When goals are challenging — yet attainable — employees have a place to put their focus, the motivation to achieve desired outcomes, and the support and resources they need to get there.
The benefits of goal setting include:
- Motivated, engaged employees that feel connected to their work
- A shared vision that aligns, rather than duplicates effort
- Increased accountability as employees move toward specific milestones
- A clear way to quantify success
- Higher retention rate
It's not enough to simply create goals. To create a path to success and productivity, managers and business owners must set effective goals.
But what makes a goal effective, and how can employers identify the right goals for their business? Start by considering your organization's overall strategic vision. Determining the actionable steps needed to reach those long-term objectives can inform short-term goals.
For instance, if your business' overarching objective is growing your client base by a certain percentage, your focus should be on setting short-term goals that work to help achieve your overall growth.
Start by determining the steps it'll take to get to that longer-term objective. Place these actions in chronological order, then list the resources (such as staff, knowledge, connections, equipment, funds, etc.) that you'll need for each. Organizing your goals in a logical, manageable series of steps allows you to plan effectively, and set the goals you need to be successful.
The George Washington University School of Business recommends taking a smart approach by implementing the S.M.A.R.T. goal-setting method.
In a nutshell, successful goals are:
- Specific: Strive for a clearly defined outcome; goals that are too general or vague don't facilitate effective planning, which then stymies execution
- Measurable: Objectives (both end and in-process) should be identifiable in order to track progress
- Attainable: Set realistic goals that account for available resources; too-lofty goals are a recipe for discouragement
- Relevant: Goals must align with your business plan, mission and vision
- Time-Bound: A set timeline drives focus and sets the stage for achievement
Obtaining employee buy-in is also key. When you're developing goals, solicit your team's feedback. Not only will you receive a different perspective on what's needed, but employees will also feel a sense of ownership that leads to improved motivation.
When employees can see exactly how their goals will support the organization's objectives, they'll have a better understanding of what's expected of them. This helps them take responsibility for their performance.
Setting effective, SMART goals directs employees' — and managers' — attention and efforts, all while boosting productivity. Having a clear objective to work toward, and measure performance against, helps your team stay focused, both in the short- and long-term.
