Your Goal Setting Framework
By Richard Martin
Like many people, December is the time when I become a bit more introspective and focus on what I’ve accomplished in the past year. It’s also a good time for me to look forward by applying the lessons I’ve learned and setting new goals for next year.
It was in a conversation with a colleague that I realized that there are always at least two dimensions to goal setting. We can focus on inputs or results, or we can set goals that are either minimal in nature, or that will stretch us and provide a vigorous challenge. I decided to combine these two dimensions, which generates the following framework.
Focusing on Results vs. Inputs
Focusing on results pushes us to envision the end state we’re aiming for. By doing so we’re generating purpose and vision, identifying what we want to achieve. Conversely, focusing on inputs is how we develop options and allocate the resources to achieve the desired results and end state. Inputs are how we attain our goals.
All businesses want to grow revenue, increase margins, lower costs, etc., as performance oriented goals.
But the more useful question is how to achieve those aims. That’s where inputs come into play. To grow revenue, you have to increase sales to current and new clients. You can increase market penetration of existing products or introduce new or improved ones, or combine them in various ways. You then have to determine how to implement these intermediate strategies.
This means asking the how question repeatedly until you get to the basic inputs, thereby generating a hierarchy of goals. These input goals then provide your baseline operational objectives, what you have to do day in, day out on the front lines of your business. How many clients or prospects should you meet? How many leads do you need to generate those prospects? How often do you repeat? What do you offer? How do you apportion between business lines and teams?
Minimal vs. Stretch Goals
I’ve come across many opinions about which are the best: minimal goals or “unrealistic,” stretch goals. In my experience there is no silver bullet. Whichever is best depends on the situation, whether you’re dealing with inputs or results, and the temperament and attitude of the people you’re leading.
Some people are motivated by minimal goals, especially if the aim is to establish a disciplined and methodical input process. In this case, it can make eminent sense to set a goal of “at least 10 prospects contacted per week.” Conversely, if you’re dealing with intensely competitive go-getters, then you can inspire them with aggressive, stretch goals and the rewards that will come when they attain these. You put the next step up high, out of easy or immediate reach, and let them figure out how to get there.
In my experience, we need both dimensions—and the resulting framework of four types of goals—to combine realism with ambition. We need both dimensions to control results and plan the work to achieve them. We must also provide inspiration for the whole organization, and especially its members who are most motivated to push themselves to their limits and perform beyond expectations.
I encourage you to reflect on this framework for goal setting, especially as we come up to a new business year. Remember that there is no ideal recipe or magic formula. We must all adapt to the needs of the situation and the nature of the individuals and teams we are leading and managing.
Back to newsletters
