Business Improvement Series: Strategy 4 – What are the goals to achieve the vision
You have a vision for where you want your business to be but developing tangible goals that deliver results is a challenge.
If you’ve been following our business improvement blog series and implementing the strategies to date you would have addressed short term focus in Strategy 1, applied a long term focus as part of Strategy 2 and defined your business vision in Strategy 3.
Now that you have a clear vision as to where you want to be it’s time to set the goals that will have you achieve the vision.
When we talk about goals it is best to think of them in the context of SMART Goals. These are:
- Specific – well defined and clear
- Measurable – capable of being measured to confirm achievement
- Achievable – within the bounds of available time and resources
- Relevant – within the context of the vision/objective
- Time based – set to a deadline
For example, saying that we want the business to achieve increased sales in not SMART. However, if we said we want a 10% increase in sales for the 2017 financial year over the previous financial year this would be SMART.
First start out with determining what goals need to be achieved at the end of 5 years to move the business towards its vision. Once these have been set determine what those goals are at end of 1 year to move towards the 5 year goals?
To assist with the brainstorming process here are some examples to get the thoughts flowing (assume all goals are measured at 30 June 2022 for that financial year).
- $1 million of average monthly sales
- Average annual customer spend $100k
- Average order delivery time less than 2 days
- 75% of customers rating our service as Good or better
- Employee turnover less than 10%
- Employee job satisfaction greater than 90% positive
- Average training hours per employee greater than 20
- Net Profit of $1million
- Debtors days less 35
- Creditors days less than 30
- Warranty claim value less than $50,000
Using the first example we can then bring the goals back to 1 year by setting a target for average monthly sales of $600k by 30 June 2018.
Once all of these SMART Goals are set for the next 12 months it is time to look at the gap from these goals to where you are now and how you will go about bridging that gap.
Hanrick Curran has many years of experience supporting SME business owners to improve their business performance. If you would like to review how your business is currently performing and discuss strategies that can have a significant impact on your business please do our online business improvement assessment, speak with your usual Hanrick Curran advisor, or alternatively call Robert Pitt on 07 3218 3900.
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.