Setting business goals. The main ideas of the company
The correct setting business goals is the first step to achieving it. At the same time, setting goals – not such an easy task as it may seem at first glance.
In principle, every business owner can name any desired financial goal that he wants to get through a certain time from his business, is also the same as any investor wishes to receive a return on their investments to meet his expectations.
These business goals of the company. as a rule, are based on the main ideas of the business. The main task of the head of the company and its top managers is the most effective way to achieve these goals within the same basic ideas.
One extreme is that we often encountered is that the goals set by the owner, the majority of employees believe either overstated, or even unattainable! The answer is simple – as a rule, officers and supervisors the company has no clear and understandable step-by-step plan of action. how and why these goals will be achieved, and corresponding action plan, a set of tasks and personal motivation. If our current state and the goal does not bind a set of simple and feasible tasks, then any goal may not seem achievable.
At the beginning of the development of the action plan it is best to start from the basic idea of the company is good reason for its existence on the market on the basis of which it is possible to put the original purpose of the business. The idea behind the business is to answer the questions: “what is the benefit from the existence of the business for customers, partners, employees and owners?” and “What Value and how to write a business as a result of their work to others?”. The answers to these questions will help considerably easier to deal with setting goals and developing a plan of action to achieve business goals .
The other extreme is the fact that according to statistics, 70% of cases, a simple question asked to the owners: “What is the main purpose of your business?” we get almost the same answer – “Money and earn as much as possible. “. Don’t You think that this approach is unlikely to tell your employees what they need to do to accomplish what you want? And what exactly is your goal? How much money exactly? And in what period of time?
The lack of measurable business goals and clear idea of the company, forcing employees to work at, which rarely leads their company managed to increase sales.
Setting business goals.
A third extreme is planning or goal setting business agreement. This is the case when most of the companies making up the sales plan for the year we take the result of the previous year and added to it, for example, 10%. Why +10%? On this question to answer clearly nobody can. There are two contradictions:
everyone already knows that the past results cannot be directly extrapolated to the future, on the mere ground that the future will be totally different – the market is changing too fast;
attempt to add 10% on the basis of “expert” assessments can also do you a cruel joke, when you yourself will hinder the growth of your business not ambitious sales plan.
Such life examples one can cite dozens. So what to do? How to set goals so that they helped your business grow, were ambitious, and at the same time not demotivational your employees by its seeming unreality?
Business, as a tool to achieve goals.
If we consider the business as a means of achieving the objectives in the hands of owners and investors, it can be represented as a single mechanism – a team of experts working on specific algorithms and rules, United and inspired by the idea of business and management system. For team members, business is a tool for development, professional development and earnings.
If you are able to achieve a balance – a state where both parties benefit, and their objectives to a certain extent coincide, then we have an ideal situation for the growth of each person concerned. Thus, the task of the head of the company and top managers to set goals for the company, to meet the interests of all key stakeholders – owners, shareholders, investors, customers, partners and, of course, employees, without limiting the growth rate. And challenge employees to become intensive growth together with the company and the development of the main ideas of the company.
It is natural to assume that the increase provides for regular review of targets in the direction of their increase or quality improvements. Because we all know that if your business is not growing, it’s not moving forward, and most likely even losing ground to other, more active competitors.
The basis of this mechanism is a Model of Sales Growth. which on the one hand serves as a tool for setting goals, and on the other, a tool for developing an action plan for each employee, eliminating the gap between goals and what should employees do on a daily basis, that goal became a reality.