Setting Strategic Goals

Setting goals is critical for any type of business. It will help prepare a realistic vision for the future of your business and in doing so can maximise your business’ potential for growth. Setting strategic goals for a business can be done with virtually no money and without consuming large amounts of time.

As a starting point, you need to ask yourself the following three questions:

  • Where is your business now? This involves understanding as much about your business as possible by assessing past performance in key areas like product quality, customer satisfaction, turnover and profitability. You need to understand what drives profitability and how this can be measured.
  • Where do you want to take it? This is where you set out your top-level objectives. State these goals in specific terms and establish a timetable for their completion. For example “We will raise existing customer sales by 5 percent over the next year.”
  • What do you need to do to get there? What changes will you need to make in order to deliver on your strategic objectives? What is the best way of implementing those changes? What changes to the structure and financing of your business will be required and what goals and deadlines will you need to set for yourself and others in the business?

Once you have set your business’ strategic goals, you need to ensure that they are implemented and that performance is monitored against them. Using key performance indicators (KPIs) and setting targets and deadlines is a good way of controlling the process of introducing strategic change.