Setting and monitoring goals is basic-level work. Except it’s not

Companies easily fall into common pitfalls

🔴 Goals remain too abstract

🔴 Goals do not align with the strategy, and they lead to doing the wrong things

🔴 Goals are locked in for a year and do not flex even in unexpected situations

🔴 Monitoring of goals is forgotten or carried out too infrequently

🔴 Goals are not measured, or traditional industry-specific metrics are used that do not suit the current stage of development

🔴 There is no reaction to the achieved results

Setting goals, understanding motivational factors, and regular monitoring are crucial both in personal development and in business management.

The starting point for setting goals is a strategy that guides the organization’s operations. Understanding the defined strategy is a prerequisite for defining and selecting meaningful and effective goals and metrics.

Before defining goals, it is worthwhile to consider:

🟢 What do we want to achieve with our strategy and what does it mean for us right now?

🟢 In which areas must we succeed? What do we consider important?

🟢 What potential variables or uncertainties should we identify?

🟢 Who are key in achieving the goals?

🟢 Who will utilize the chosen metrics? How will we handle the results achieved?

Breaking down goals, scheduling, and choosing the right metrics help to focus on what is essential and maintain motivation. Traditional business metrics, such as profitability and solvency, are important, but it is also worth considering whom you want to involve in achieving the goals and where they have a genuine opportunity to influence.

Motivational factors vary individually. A company cannot define its goals from the perspective of individual motivation, but it is good to identify these factors to evaluate their impact. Motivation particularly affects how meaningful the goals are perceived to be.

Measuring goals is of no concrete benefit if the organization does not react at all to the results achieved.

Before setting goals, it is beneficial to consider possible scenarios for their realization and to develop action plans for various outcomes. Building plans and scenarios helps anticipate changes and accelerates decision-making if there is a need to change direction.

Good foresight also reduces managerial stress, especially when the metrics show negative results.