Reaching Goals and Finding Success in the Company

 

Goal Setting Strategies in Company                                        

HOW TO SET STRATEGIC PLANNING GOALS For A Company

   

Setting strategic goals for a company involves a comprehensive assessment of its mission, vision, and market landscape. It begins by aligning long-term objectives with the company's core values and identifying key performance indicators to measure success. A collaborative process, it integrates input from stakeholders across departments to establish clear, measurable, and achievable milestones driving the company towards its envisioned future.

WHAT IS STRATEGIC PLANNING?

Strategic planning involves continuously leveraging available insights to chart a business's envisioned path, allowing for resource optimization, stakeholder alignment, and data-driven objectives. Yet, Harvard Business Review research emphasizes the need for adaptable strategies, warning against rigid plans, as success often emerges from the ongoing process of responding to unforeseen opportunities and threats, an idea echoed by Professor Clayton Christensen, who underscores that effective strategies evolve through constant adaptation in response to industry shifts.'

CHARACTERISTICS OF STRATEGIC GOALS

To develop a strategic plan tailored to your organization, the initial step involves defining the specific objectives aligned with your desired outcomes. These strategic goals represent the quantifiable targets that reflect the enduring vision of the organization. Consider these four key attributes when establishing strategic goals for your entity.

1. Purpose-Driven

The foundation of crafting strategic goals lies in discerning your company's core purpose and values. Defining what you aim for, and the significance of these objectives guides the development of your organization’s strategic direction.

As articulated by HBS Professor Rebecca Henderson in the Sustainable Business Strategy course, “You need not compromise your values in the professional sphere.” Henderson, a leading advocate for reshaping capitalism toward justice and sustainability, underscores the potency of purpose-driven leadership in enhancing business performance.

“Embracing a purpose, when authentically integrated with the company’s strategic vision, can catalyze unparalleled alignment and competitive advantage,” highlighted Henderson in a Facebook Live lecture, emphasizing the potential for surpassing competitors.

2. Long-Term and Forward-Focused

When crafting strategic goals, it’s essential to distinguish them from operational goals, which represent the day-to-day steps toward achieving those broader objectives. Consider your company’s values and long-term aspirations to ensure clarity between these goal types.

For instance, creating a new marketing strategy serves as an operational milestone toward a larger vision, such as breaking into a new market segment. Maintaining a forward-focused perspective ensures you set ambitious, enduring objectives that significantly shape your organization's trajectory.

3. Actionable

Strong strategic goals are not only long-term and forward-focused—they’re actionable. If there aren’t operational goals that your team can complete to reach the strategic goal, your organization is better off spending time and resources elsewhere.

When formulating strategic goals, think about the operational goals that fall under them. Do they make up an action plan your team can take to achieve your organization’s objective? If so, the goal could be a worthwhile endeavor for your business.

4. Measurable

When crafting strategic goals, it’s important to define how progress and success will be measured.

 According to the online course Strategy Execution, an effective tool you can use to create measurable goals is a balanced scorecard—a tool to help you track and measure non-financial variables.

 “The balanced scorecard combines the traditional financial perspective with additional perspectives that focus on customers, internal business processes, and learning and development,” says HBS Professor Robert Simons in the online course Strategy Execution. “These additional perspectives help businesses measure all the activities essential to creating value.”

 The four perspectives are:

• ·       Financial
• ·       Customer
• ·       Internal business processes
• ·       Learning and growth

Think of the balanced scorecard like a mirror for your business strategy. If you look at its measures, they should tell you exactly what your strategy is all about.

STRATEGIC GOAL EXAMPLES

Let's consider a goal for a bank focused on enhancing customer satisfaction:

Vague Goal: "Improve customer experience."

More Specific Goal: "Increase customer satisfaction scores by 20% in the next year through streamlined online banking services, personalized financial advice, and reduced wait times at branches."

In the first goal, improving customer experience is a broad statement without clear direction. The second goal specifies the target—increasing customer satisfaction scores by a measurable amount (20%) within a defined timeframe (next year). It outlines actionable steps (streamlined online services, personalized advice, reduced wait times) that align with the strategic vision of the bank. This specific goal provides a clear understanding of what success means and how progress will be measured, guiding the bank's efforts towards a more defined outcome.

PRIORITIZING STRATEGIC GOALS

Choosing which goals to focus on can take time, especially when different people have different ideas. To make it easier, make sure everyone knows why each goal is important. When everyone understands why, it helps the team work together better, just like Henderson mentioned about outperforming competitors.

Calculate Anticipated ROI

Then, figure out how much you'll get back from the things you need to do to reach each big goal. For instance, if the main goal is 'become carbon neutral by 2030,' break it into smaller tasks like 'figure out our yearly CO2 emissions' and 'make a marketing plan.' Calculate what it might cost and what you might gain from each of these smaller tasks.

The ROI formula is typically written as:

ROI = (Net Profit / Cost of Investment) x 100

In project management, the formula uses slightly different terms:

ROI = [(Financial Value - Project Cost) / Project Cost] x 100

An estimate can be a valuable piece of information when deciding which goals to pursue. Although not all strategic goals need to yield a high return on investment, it’s in your best interest to calculate each objective's anticipated ROI so you can compare them.

LEARN TO PLAN STRATEGIC GOALS

As you set and prioritize strategic goals, remember that your strategy should always be evolving. As circumstances and challenges shift, so must your organizational strategy

Here a better example on making s strategic plan and some measurables...

Becoming the premier bank in Sri Lanka involves more than offering financial services—it requires a strategic blueprint akin to constructing a house. Just as building a house demands meticulous planning, resources, and adaptability, achieving the stature of the best bank in Sri Lanka necessitates a strategic vision, measurable objectives, and the ability to adapt to dynamic market landscapes. Let's delve into a comprehensive strategy for strategically positioning a bank as the foremost in Sri Lanka's financial landscape.

Strategic Approach to Being the Best Bank in Sri Lanka:

1. Visionary Definition:Much like planning a house, the foundation lies in envisioning the end result. Define what being the best bank entails—superior customer service, innovative products, extensive reach, or technological advancements. Ensure these goals are clear, measurable, and aligned with customer needs.

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3. Strategic Roadmap: Just as a blueprint guides construction, a detailed strategy guides a bank's growth. Develop a comprehensive strategy encompassing market analysis, customer segmentation, service differentiation, and technological advancements. Each aspect should have measurable goals—for instance, increase in customer satisfaction ratings, expansion of digital services with a quantifiable percentage increase in online transactions, etc.

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5. Resource Allocation: Building a house requires resources—materials, manpower, and funds. Similarly, allocate resources strategically—invest in technology, employee training, customer experience enhancements, and innovative financial products. Measure the return on investment (ROI) for each resource allocation.

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7. Adaptability to Market Shifts: Construction plans adjust to unexpected changes like weather; similarly, banks need agility in adapting to market dynamics. Incorporate flexibility into strategies to adapt swiftly to economic fluctuations, regulatory changes, or technological advancements. Measure the bank's adaptability in response to these shifts.

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9. Measurable Milestones: Building a house progresses in stages—foundation, structure, finishing. Likewise, set measurable milestones for the bank—such as a percentage increase in market share, a rise in customer deposits, growth in loan portfolios, or a boost in brand recognition.

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11. Quality Assurance: Just as a house's quality is crucial, maintain service excellence and consistency. Measure customer satisfaction, service efficiency, and product quality to ensure the bank consistently delivers value.

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13. Continuous Improvement: A house isn't static; it undergoes improvements. Similarly, the best bank status requires continuous evolution. Measure success, identify areas for enhancement, and iterate strategies for ongoing growth, setting new benchmarks.

About the Author

Madhusha Devagedara

Banker at Sri Lanka Bank of Ceylon

Referenceces

• https://asana.com/resources/strategic-goals-objectives
• https://www.bing.com/images/search?view=detailV2&ccid=UTrjaS88&id=1D765501C838679E95CB86D4EB7847FD4900E008&thid=OIP.UTrjaS88nO0mwx_jsAqg7wHaD4&mediaurl=https%3a%2f%2fblog.deerwalk.com%2fhs-fs%2fhubfs
• https://hbr.org/2023/06/3-steps-to-identify-the-right-strategic-goals-for-your-company
• https://online.hbs.edu/blog/post/strategic-planning-goals
• https://www.bing.com/images