Why is Goal Setting so Important?

Why is Goal setting so Important?

The answer is quite simple:

Good goal setting:

1. is powerfully motivating
2. yields more satisfaction from the sense of achievement
3. gives focus
4. should be used as a driver of your business intelligence initiatives.

A goal or objective consists of a projected state of affairs or state or end point. Why should you set goals or objectives rather than take things as they come?

In business, goals or objectives should be derived from you business strategy and plans which is in turn is derived from your Strengths, Weaknesses , Opportunities and Threats (SWOT analysis). The opportunities and threats are really the business drivers.

Your strategy should also relate to your vision or mission for you company.

Goals or Objectives should be related in a hierarchy of strategy map based on the principles behind the balanced scorecard so that their relationship can be understood so that goals are set such tat they do not conflict.

Goals need to be properly constructed using the acronym SMART as the guideline.

There is good theory behind goal setting but does it work?

Even you do not achieve your goals as set, you will probably make more progress than without setting goals. It is important though to ensure that your goals are balanced and one part of your system does not suffer e.g. you met production goals or targets but there are many quality issues as a consequence.

Here are goal setting guidelines and a list of goal setting activities to help you set goals. Also two powerful examples of goal setting that illustrate the power of good goal setting. They could be called 'Big Hairy Audacious Goals' or a BHAG.

Finally, you should read Deming's claim that setting numerical goals is not best practice! Deming claims that setting numerical goals is not best practice

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