Estimated reading time: 3 minutes
During a training session years ago, a facilitator asked our group to do an activity called “make as much money as you can”. We weren’t provided with a lot of instruction. The facilitator divided us into smaller groups and simply said, “Come up with a plan to make as much money as you can.”. After spending some time working on it, each group presented their plan. Here’s what we discovered during our debrief.
- For some groups, “you” meant a small group of people. Others took “you” to mean their department or division. And others interpreted “you” to mean the entire company.
- When it came to “money”, some groups thought that meant top line revenue so they could add more employee benefits or possibly increase customer service. Others thought it meant bottom line profit.
While I don’t remember all the specifics about conducting the activity, the takeaway still stays with me. Organizations can’t just assume that every employee knows their business goals. Even in very entrepreneurial companies where “making money” is a top priority, how the organization makes money needs to be clarified. As we’re approaching year-end and organizations are thinking about their goals for next year, here are some keywords that might help bring clarity in designing and communicating business goals.
RESULTS: What are the business goals that the company wants to achieve? And what drives those goals? For instance, if the company wants to improve sales, by how much? What are the things that drive sales? Maybe the organization needs to get some feedback from the sales team on what they’re hearing in conversations with customers.
ROADMAP: What is the process and timeline for getting where the organization is right now to where they want to be? This can be discussed in a traditional gap analysis format. Organizations should be specific about the steps they need to take. It’s possible that the company will need to invest in training or equipment in order to accomplish a step.
RESPONSIBILITIES: Who is accountable for each step in the process? What’s their role? We’ve talked before about the RACI model which stands for responsible, accountable, consult, and inform. When trying to accomplish a goal, individuals need to know who is doing what. Organizations should not assume that someone just knows that they’re responsible for accomplishing something.
REPORTING: Lastly, how – and how often – will results be measured and reported? The organization needs to reach consensus on what success looks like. If we use our example goal of improving sales, then the organization should know how much they want to increase sales by … and when they expect to see that happen.
The purpose of these keywords is to ensure that goals are specific and that they are communicated to everyone. Keep in mind, that goals might change. It’s possible that someone will leave the company and responsibilities need to be reassigned. Or an external factor beyond anyone’s control will mean adjusting results – and subsequently how results are reported. Oh, and maybe a new technology will emerge that could streamline the roadmap. All possibilities that can impact goal success.
But if employees don’t understand the company’s business goals, then they’re left to figuring it out all on their own. Like the “make as much money as you can” activity I mentioned in the introduction. Maybe they’ll get it right. By developing specific goals and clearly communicating those goals, organizations don’t need to hope and wish … they will know employees understand what they need to do.
Image captured by Sharlyn Lauby while exploring the streets of Nashville, TN
