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Why your company needs to be driven by goals

Every company, big or small, has a raison d’etre - a reason for existence. This reflects in its vision or mission statement. Vision statement articulates where a company wants to reach and mission statement, how it’s going to reach there. They are critical to any company’s success.

Importance of goals

In reality though, having vision and mission statements is only half-job done, like having a destination but not having a route plan. This is where goals come in to play - goals serve as the means to achieving your company’s vision and mission. Many successful companies take goal setting as an important management process. Though it is a simple exercise, having clearly defined goals can have an overarching impact on the company’s long term success. A goal driven company helps its employees to focus on what’s important for themselves and for the company, by giving a clear direction and fostering a win-win culture.

Performance planning

According to Dr. Edwin Locke’s goal-setting theory, challenging goals combined with appropriate feedback can improve employee performance. Leaders of goal-driven companies need to set ambitious goals not only for themselves but also for their teams and second-line leaders, challenging and inspiring them to rise above and beyond their own expectations. This is easier said than done. Adopting a performance planning tool helps to streamline goal setting and coaching activities. Use of a performance planning tool also increases transparency, builds accountability and helps measure progress.