Goal Setting and Business Planning for Business Success

Goal Setting for Business SuccessBy the WHK Business Growth Team

“Successful Kiwi business people are highly motivated in that they understand and act on important values, have a clear vision of the future and they have as much fun as possible while progressing their goals”

The Kiwi Effect – Laurence Green and Jenny Campbell

As we enter into a new calendar year, time for addressing our goals, our business/personal values and vision for the future should be at the forefront of every business owner’s mind.

Why is Goal Setting Important?

The old saying “if you aim at nothing, you are sure to hit it” truly does apply to goal setting. It is one of the easiest and most powerful business tools and is often overlooked by many New Zealand businesses.

In our experience successful businesses have a clear goal setting process, which they follow diligently, and use as a performance mechanism to track progress.

Goal setting is vital given that most New Zealand businesses are owner-operated and therefore the goals of the owner(s) often strongly influence the goals of the business.

“Having goals in your head” is a starting point but the goal setting process should involve business partners, senior management, family members and all those with an influence in order to be successful. It should be a documented process, which sets targets for action.

Why are Personal Goals Important to Consider for Business Success?

Often business owners fail to consider the importance of personal goals and the influence of these goals on business operations. Business and personal goals must be considered together and must not be in conflict with each other.

Consider the impact on your personal life of growth within your business:
• What will be the maximum number of hours a week you would like to work?
• How much money do you need to sustain the lifestyle you would like to have?
• How much travel do you want to do?
• How successful do you want to be and how will you measure this?

What are the Characteristics of Effective Goals?

• Written – this formalises the goal, gives it credibility and makes it concrete
• Manageable/realistic – this makes goals easier to achieve
• Time bound – to give deadlines around action
• Specific/precise and measurable – for example, compare increase turnover, to increase turnover by 15% by June the following year.
• Written as a positive statement

What is your Big Hairy Audacious Goal (BHAG)?

An ugly name, but an important goal to consider. The BHAG is more than a goal, it is a huge daunting challenge, a vision. The BHAG of your business
• Should require little or no explanation
• Should reach out and grab people
• Everyone will know when the goal has been reached

For example - Nike in the 1960’s was a small Seattle based shoe manufacturer. Its BHAG was quite simply to CRUSH ADIDAS.

The BHAG should really stretch your business to its wildest dream – what would it achieve if it achieved the ultimate?

How does Goal Setting Fit with Motivation?

Motivation refers to those things inside you that energise you to make things happen. Motivation helps you focus better, be more proactive in problem solving, learn more easily and be more resilient in the face of adversity.

There are three elements of motivation;
1. Determining the key values of the individual/organisation involved
2. Ascertaining a clear vision for the future
3. Taking action on the values and vision

Goal setting is apparent in all three of the elements of motivation. The attractive qualities of the vision and goals determine the kind of future you would like to create and draw you forward into taking action.

Questions to Get You Started

1. At your 75th birthday, what is it that you would have like to have achieved? What would you like to be remembered for, what would you have contributed to those around you in either a social or business sense?
2. How much money would you like to earn in both the short and long term?
3. How large a business do you wish to operate? Consider both turnover and employee levels, markets
4. How old would you like to be (realistically) when you retire?
5. What are the possible obstacles to you achieving your goals?

The most important question to ask:

“If you achieved the ultimate, what would you achieve?”

WHK Business Growth Assistance

Goal setting is undoubtedly one of the most important considerations for any business. WHK Gosling Chapman can assist in a facilitation role to:
1. Clarify the goal setting process
2. Co-ordinate the people involved within the process (often this is the most difficult area of goal setting)
3. Incorporate the plans for action and performance measurement mechanisms into the business planning process.

Government funding through New Zealand Trade and Enterprise may be available to contribute 50% of the costs of gaining external assistance with your business planning and goal setting.

The WHK Business Growth team runs fully funded workshops that look at how to establish goals and implement business plans. Register to attend our Effective Goal Setting and Business Planning workshop.

The advice here is general and should be discussed with your accountant or lawyer who will put this into context around your business needs.