An important part of setting goals is figuring out how to know they are complete. Although this is a topic typically reserved for December or January, July is actually a great time to talk about goal setting because your 2011 goals are old enough to evaluate, but still new enough to be accomplished. Here are 4 methods for measuring goals that should be considered as you are refining for 2011 and moving into initial planning for 2012.
The Go, No-Go Goal Measurement
When I was in telecommunications sales, a common annual objective was to get products lab tested and approved for sale into major accounts. Customers would provide a lab approval notice that gave the go, no-go for the “lab approval” objective. The good thing about these types of goals is that they are very easy to measure, it’s either done or not done.
However, there is a down side, especially when using it for performance payment. Sometimes your goal becomes impossible a few months into the year – losing a specific RFP or landing a specific client, and at that point you have a goal with no hope of accomplishment. It’s ok to have one or two of these, but be careful not to have a bunch of goals that are impossible by the fourth month of the year.
The Simple Goal Measure
Revenue is a great simple measure, as is profitability. These are things that are already being measured and typically have a history of performance so that a realistic number can be set for achievement. If you can set goals for things you already measure that also accomplish the things you want, it’s a great goal. But many times, you want to accomplish things that aren’t already being measured….
The Not-So-Simple Goal Measure
Many times you want to set goals on things like customer satisfaction and brand awareness, things that are measurable, but ones that you probably aren’t currently measuring. It might be a new goal that just needs to be set up for measurement or one that previously escaped your means to pay for measurement. Many times it helps to figure out a cheaper and easier way to measure something indirectly. Using a well designed web site and Google Analytics can go a long way in measuring certain results, especially things like advertising effectiveness.
Subjective Goal Measurement
Once, I was interviewing a new client, a restaurant owner, and asked how they measured a successful day. I was looking for a revenue number or even a number of customers, but they looked me in the eye and said, “It just feels like everything is going well. Customers seem happy, the orders are moving and the wait staff is smiling.” In the end there are some things we want to accomplish that either can’t be measured or we can’t afford to measure them and that’s ok. Just make sure you realize the shortcoming and do the best you can.
In the case of the restaurant, I definitely recommended they use daily revenue as a measure they were already tracking. But I also told them to count the number of days that things “felt good”, or even rate the good feeling on a scale of 1 to 5, and we could use that as a starting point. Sigma College of Small Business helps small and medium businesses with their business strategies and planning, including setting up goal measurements for the things that you just want to get done.
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