How To Set Effective Business Goals

In the business world, the idea of setting goals for success is not revolutionary. Lots of research have been done showing that establishing goals is essential to the success of a company. Most business leaders establish goals for their company when they draft a mission statement. The challenge, however, for these leaders is keeping track of their goals; the 4th Annual Staples Small National Business Survey revealed that 80% of business leaders lose sight of their goals after some time.

One way for business leaders to avoid losing track of their goals is by setting goals that can be easily monitored. An ideal way of doing this is by setting short- and long-term goals. The short-term goals serve as benchmarks that monitor achievement of long-term goals and can be calibrated as needed to ensure long-term goals are met.

Long term goals

Long term goals are usually set over years and even decades depending on the company. These are generally not flexible. Long term goals provide a strategic plan for the company and functions as a company roadmap. Some benefits that may arise from establishing long term goals include:

  • The business leader does not get caught up in the daily distractions that may deter the company’s goals from being achieved
  • Costs can be spread over a longer duration of time resulting in lower costs at each point in time
  • Business leaders become more proactive than reactive in addressing issues that may arise

Short term goals

Short term goals are usually set over days, weeks, or months. Occasionally, a short term goal can be set over year. These are generally more flexible than long term goals and can be modified accordingly in response to prevailing circumstances. Benefits arising from establishing short term goals include:

  • They allow for immediate results
  • They boost the company’s confidence and motivation
  • They enable quicker responses to unexpected events

The success of a company depends on how well its goals are established. The right combination of short- and long-term goals sets the company to compete in the global economy and ultimately succeed.

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