Strategic Goal Setting
Abraham Lincoln wrote, “A goal properly set is halfway reached." His quote implied that without
setting a goal the road toward achievement is longer and perhaps more challenging. It is true that
setting goals is important to keeping employees motivated, but it can also be invaluable for an
organization when achieving and sustaining success. Success cannot be attained unless it can
be measured.
Goal setting is part of an organization’s strategic plan and vision. Vision, as defined by Jim Collins in
his Good to Great Book, is a big, hairy, audacious goal – known in most business circles as a BHAG.
While vision is a philosophical ideal that creates the motivation for employees to collectively strive for
at a level that is something far greater than themselves - the “sum of the parts is greater than the
whole” theory, strategy comprises the general ideas of how to reach the vision. Goal setting
specifically aligns with these general ideas to essentially put philosophy into action. The purpose of
vision is to set a strategic BHAG, ensuring the organization can migrate from what it does right now
(mission) to what wants to do someday.
There are three levels of goal setting: organizational goals – known also as strategic goals, team
goals – which can be the same as departmental goals, and individual goals. Individual goals should
roll up and align into departmental goals, and those should roll up and align with the organization’s
goals. It is most important when achieving any of these levels to keep a clear line of sight to
the vision.
Setting goals comprises five steps. Many use the SMART method or some variation of it. The key to
goal setting is breaking up the goal into manageable parts (called mini-goals) and refer to the process
often to stay on track. Under the SMART goal process, the first step is SPECIFIC. Make sure the goal
has specific details so that misunderstandings can be kept to a minimum. Goals should also be
MEASURABLE. For example, this can be done by using a percentage, a finite number, or a ratio. The
goal must be ATTAINABLE and within the control and reach of the person who is attempting to reach
the goal. If it is not, the person may not continue to be motivated towards goal achievement. There
are two terms for the next step – some use RELEVANT and others use RESPONSIBLE. For relevant,
the goal must be tied to the vision with specific outcomes that help the organization achieve the
vision. For responsible, the goal must be assigned to a responsible party and followed up to ensure
goal completion. Either (R) works, and sometimes, some people use both. The last step stands for
Time Bound or Time Measured. The point of “T” is to ensure results. If a goal is set but no deadline
assigned, the goal is usually never accomplished. Once all five steps have been followed, it is wise to
complete a matrix to ensure progress is being made collectively toward goal achievement.
After the goals are established, it is critical that periodic meetings are held to clarify any
misconceptions, to provide additional resources and support, to check on progress, and to ensure
that everyone is still aligned with the vision. Even when high performing employees are working
together to accomplish strategic objectives, periodic validation may be needed.
Strategic HR has templates that clients may use to assist them with strategic goal setting. We also
have seasoned consultants who can assist your company in assembling its team or departmental goals
that align with your company’s vision.
Happy goal setting!