Key Principles in Goals Setting

Click here to view a video that explains five rules of goal setting and how to set SMART goals.

Take the information from your strategy analysis (external and internal) and convert it into a set of goals and objectives that will drive your division over the next 12 months.

This process of formulating strategic objectives is often relatively simple. The process can be summarised as follows:

• Key external issues and trends (opportunities and threats) – involve answering the question: ‘What do we intend to do about challenges that face us in the external environment?
• Internal skills and resources – involve asking the question: ‘We now know what our strengths and weaknesses are. What do we intend to do about it in order to meet the challenges posed by the changing external environment?
• Analysis of the constraints – require asking the question: ‘What constraints do stakeholders impose on our future operations?’ ‘What restrictions - physical, human and financial- will we have to operate under?

Given that organisations suffer from resource constraints and that it is not feasible to achieve every strategic objective, a process must be established whereby a ‘wish list’ can be converted into an actionable list of strategic goals and objectives for every division.

This can be achieved in two stages:

1. It is necessary to allocate priorities to alternative objectives. The method of allocating priorities will vary from division to division, depending on the particular requirements of each of the available resources.
2. Management must ensure that the strategic objectives conform to the following appropriate attributes:

This means that for every objective a specific method of measuring or monitoring must be identified and agreed upon. For every objective a specific time frame for monitoring or completion must also be agreed upon. This will mean that your objectives are truly SMART.