Why is Setting Goals & Objectives Important?
There are many advantages to establishing organisational goals and objectives, including:
1. Provide direction – Goals & objectives help to define performance standards which, in turn, helps to ensure that people pull in the same direction and are dissuaded from pursuing unnecessary goals.
2. Measure Success – Successful organisations are always trying to improve, grow, and become more efficient. Setting goals & objectives and measuring the progress towards their attainment is a great way to measure the success of the organisation.
3. Consistency – Setting goals & objectives ensures that everyone understands what the organisation is striving for. When the management team understands what the business is trying to accomplish, it provides greater rationale for the strategic and operational decisions they make.
4. Guide employee efforts – When employees know and understand the organisations goals & objectives they are better equipped to make better decisions in their day-to-day work.
5. Assess performance – Goals & objectives can be monitored on a regular basis to verify the business is headed in the right direction. If the business is not achieving or moving towards accomplishing its targets, then informed changes or adjustments can be made.
Pitfalls of Developing Business Goals
Setting business goals can go wrong if not done correctly. Seasoned business managers put a great deal of time and energy into developing and implementing business goals. There are two big pitfalls a business manager should try to avoid.
1. Setting unrealistically high goals – When a goal is perceived to be unreachable, no effort will be made by the employees to achieve them. A businessperson needs to set realistic goals so that the employees can come together as a team to achieve them.
2. Setting vague and ambiguous goals – Goals that are not specific enough do not lead to action and are useless. If achievements cannot be measured against the businesses expectations, then a manager cannot observe any progress towards the goal.