Goal Setting For Small Business Owners
The planning and controlling functions of management often receive less attention from the small business owner than they should. One way to more effectively fulfill these two functions is through effective goal setting.
The success of a business will depend on its long-range goals for sales, profits, competitive position, development of personnel and industrial relations. To accomplish these goals, the company will need to identify intermediate goals that it can work toward each year.
Proper goal setting requirements should be put in place to create a working framework for small business owners to refer back on during the year, see some requirements below:
Goals were expressed in specific and measurable terms.
Each employee proposed 5 to 10 goals to cover those aspects of his or her job crucial to successful performance.
A final written statement of each goal was prepared, including a statement of the goal, method of evaluating the goal, work steps needed to complete the goal and an estimated time needed to complete the steps.
Progress was evaluated at regular intervals (at least quarterly) and compared with the original goals.
Problems that hindered progress were identified and corrected.
Long-range business goals will be the cornerstone of your company’s steps to success. To achieve these goals, you must have a method to communicate them to your managers and employees. One way is to bring managers and employees into the process by asking them to help formulate the company’s short- and long-range goals. If they have a role in establishing the goals, they will be more committed to achieving them. All goals should relate to and support the long-range objectives for the company. In this way, you can ensure that the goals of all levels of management are consistent.
When progress is below expectations, you should identify the problems holding back progress and assign someone to resolve them. Failure to reach goals can result from:
The wrong objectives being established at the outset.
Organizational restrictions being overlooked
Personal failure or a combination of factors.
In order to solve problems and meet a goal, managers may have to adjust their time line or change the goal itself, changes should be written as new goals.