“Those who fail to plan, plan to fail.”
The new year is just around the corner and it is time to set goals for the year 2022. With so many goal setting methods available around you, it is very obvious to get overwhelmed and confused to choose the right one suitable to your business needs.
In this blog, we will introduce you to different types of goals setting methods available around you and how you can choose the best one according to your business needs. Let’s start.
14 Goal Setting Methods: Framework & Systems
There are many goal setting methods and frameworks. Below is the summary of different types of goal setting methods their framework and systems.
This goal setting framework was first introduced by George Doran, Arthur Miller, and James Cunningham in 1981. The elaborated form of the acronym SMART means goals that are specific, measurable, achievable, realistic, and time-bound.
This approach helps you to keep your focus on choosing goals that will produce better business results. Let’s dig more into this goal setting approach.
Specific: Ensure your goals are clear and specifically defined. For example, a goal could be increasing the social media presence of your organization, but a specific goal will be increasing the social media followers of LinkedIn.
Measurable: Goals should be always measurable. Eg: Increasing social media followers of the organization to 15K by end of December.
Achievable: Your goals should be achievable and fits in your present schedule. For instance, if you want to achieve 15K followers by end of December, make sure you have enough time to organize campaigns, and preparation for the campaigns is in progress.
Realistic: The goals should not be wage and be realistic. You cannot have 1 million followers on social media if you started the account just this week.
Time-bound: There should be a time frame attached to your goal which will give you the motivation to work towards it. For example, Increasing the social media followers of the organization to 15K by end of December.
Focus on Goals. Measure your Progress. Achieve Results.
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SMART goals can be expanded to make SMARTER goals, here ER stands for Evaluate and Readjust:
- Evaluate: You will have to check in at regular intervals to evaluate your goal. For example, check every fortnight to ensure you are progressing in your social media campaigns to achieve your 15K followers goal.
- Readjust: You have to be prepared to readjust your plan at any point in time. If your social media campaigns are not running as expected you will have to readjust your social media strategy to reach your goal.
Companies that use SMART Goals: Hubspot
Click Here to read about : Difference between OKRs and SMART goals [with examples]
2B.H.A.G. – Big, Hairy, Audacious Goals
The term Big, Hairy, Audacious Goal was first coined by Jim Collins and Jerry Porras.
These are Massive goals that are compelling, long-term, and intriguing enough to inspire employees of an organization to take action.
These goals involve an emotional component that pulls people out of a slump and drives a purpose for the company while achieving something major.
BHAG has four broad categories:
Seek to follow the successful model of a well-known company working in a similar niche.
Focus on overtaking your competitors.
Set the target you want to achieve.
Be competitive by revitalizing your people and business
One of the iconic BHAGs is a famous declaration of President Kennedy in the year 1961: “This nation should commit itself to achieve the goal, before this decade is out, of landing a man on the moon and returning him safely to earth.” The outcome was a historic moon landing in 1969.
Another example of BHAGs is Meta’s “make the world more open and connected” mantra for Facebook.
In recent years, the backward goal has received a lot of attention, and it’s exactly as its name says.
Plan in reverse, Start with the end goal and then work out the way back from there to develop a plan of action.
For example, if you have to write a blog, rather than focusing on the first paragraph, you would start with the conclusion. And then build the rest of the blog and write the start at the end. Isn’t it interesting !!!
Basically, it is all about identifying small goals, targets, and tasks that need to be achieved to make that top goal happen.
This goal technique is useful for companies that aren’t sure about their goals.
They simply have an idea how their future should look like. The backward goal helps them to translate that vision into measurable goals.
Researchers at the University of Iowa and Peking carried out a number of experiments with 300 university students who made plans to tackle goals such as revising for an exam or prepping for a job interview.
Forward planning and reverse planning were the two methods of planning identified for the study.
They found that students using the reverse planning technique were more motivated, had higher goal expectancy, and felt less time pressure.
There was also a marked difference in success between forward and reverse planning. Reverse planning not only enhanced student motivation and perception but changed the actual outcome by improving student grades.
4Objective and key results
OKRs stands for Objectives and Key Results. In this goal-setting approach, goals are set quarterly and are based on objectives (things you want to achieve) and the key results are the numbers that you must hit to achieve the objective.
The goals are set up for the entire organization and everyone has access to these goals.
The departments then set their goals and key results they should achieve to reach their department goal and at a large to achieve the company’s goal.
Let us understand this by example: Your organization’s goal is to achieve 5000 new customers by end of this quarter.
Now each department will set its goals aligned with the main goal of the company.
If you want 2,000 new readers by the end of the year, you may consider an outreach program, for which maybe you need to hire new employees or train current employees.
Set specific goals for the outreach that can help you achieve the larger goal of 2,000 new readers. Work upon and reevaluate your smaller goals as you move forward.
Companies that use OKRs : IBM, Google, Microsoft, and Jell (US)
Click here to read a complete guide on OKR Process.
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5One-Word Goal Setting
Mention of the One-Word goal setting technique was first found in “One Word That Will Change Your Life,” book by Britton, Jon Gordon, and Jimmy Page.
As the name says this goal technique is all about choosing one word and focusing on it to achieve a roundabout goal.
For example, if you want to increase your personal sales quota, your one-word goal might be either sell or connect, because you may want to connect with more new people and revive your old contacts for more opportunities.
This goal setting method is popular due to its simplicity of setting the goal. This goal-setting technique can be used for setting personal as well as business goals.
How To Choose Your Word
Reflect. Choosing one word for your business starts with a reflection on what you want for your business? What will you do to make it happen? What are your needs to fulfill your vision? What changes do you need to make? Simply make notes about your vision and answers to these questions.
Brainstorm. The next step is to brainstorm all possible words that are close to the end result you want to achieve. For example, let’s say you want to focus on increasing your sales this year through new connections, word of mouth, improved customer service, and loyal customers.
Some words that describe what you envision include: loyalty, sales, upsell, profit, relationships, service, value, referrals, focus, connections, grow.
Choose. The final step is to choose the one word that relates the most to your organization’s goal. Going back to our example, you may determine that the word PROFIT encompasses what you hope to accomplish since you intend to increase your sales by different means and methods.
One clear advantage of the One-word goal-setting technique is not falling into analysis paralysis. But it has some cons too like it lacks details and requires explanation.
6Locke and Latham’s 5 principles
In 1968, Locke in his article “Toward a Theory of Task Motivation and Incentives,” showed that clear goals and feedback motivate employees. He went on to highlight that working toward a goal is also a major source of motivation – which, in turn, improves performance.
The 5 principles included in this goal-setting approach are Clarity, Challenge, Commitment, Feedback, and Task Complexity. These principles increase the odds of succeeding.
Clarity: Goals should be clear, easy to understand, and measurable.
Challenge: The goals should be challenging because a challenge motivates you to work hard to achieve the goal.
Commitment: Find an objective that you want to achieve.
The more committed you are towards achieving your objective, the more likely you are to achieve it.
Feedback: Make sure to do a regular check-in to track the progress of your actions to achieve the goal and provide feedback to your team.
Asking a third person to provide feedback will help you even more and motivate you to be on track.
Task complexity: The goals should be challenging but not beyond your ability to achieve.
For example, if you don’t know to code there is no point in setting a goal like learning all the coding languages in one month. Instead, it should be to learn one coding language in a month.
The full form of the acronym HARD is heartfelt, animated, required, and difficult. These goals light up your brain and encourage great performance.
Heartfelt: The goals should be intrinsic, personal, and/or extrinsic. If you want to learn a new language, imagine the pride of learning a new language.
The emotions associated with pride will motivate you to achieve the goal of learning a new language.
Animated: The goals should give you a clear picture of what you are doing now and where you want to be in one year, three years, or five years. Basically, visualize your goal and see your future and use all your senses to do so.
Required: You should be clear of accomplishments you need to hit to reach the set goals. Ask yourself a few questions like. “What do I need to achieve in the next three months to keep on track toward achieving the set goal? What about by the end of the next 6 months? The next one month? last but not least What’s one thing I can achieve today?”
These required questions make clear how even long-term goals have urgent steps we must work on today. This prevents the phenomenon where you procrastinate in pursuing your goals.
Difficult: The Difficulty level of the task will ensure that you grow and develop, introducing a level of challenge that drives motivation.
It will also critically analyzes the gap between your current skills and any new skills needed to achieve your career goal.
Wish, Outcome, Obstacle and Plan are the words the acronym WOOP is derived from. The steps to use this goal technique include:
Wish: Wish for a goal that excites you. The positive feeling attached to the goal will motivate and drive you forward.
Outcome: Imagine the outcome of the set goal with minute detailing. Work towards those details to achieve your goal.
Obstacle: Consider what all can hinder your way to achieving the set goals and try to remove those obstacles.
Plan: Plan your way ahead to remove obstacles and ways to achieve your goals.
9Tiered Goals Framework
In this technique, goals are created based on the timeline like Annual goals, Quarterly goals, then Monthly goals. They are more like a to-do list.
The goals are followed up on basis of their timeline set and are Recommitted, Reset, and Removed, as needed.
The concept of this goal-setting technique was coined by Simon Sinek in a TED talk on “How Great Leaders Inspire Action”.
The golden circle comprises three circles with the innermost denoting WHY ( Why you have a goal), the middle one HOW ( How can you achieve those goals) and the outermost denoting WHAT ( What you will have to do to achieve them). In order to achieve your goals, you should move from the innermost circle to the outer one.
11BSQ – Big, Small, and Quick
As the name suggests this Goal technique focuses on
1. Think Big, 2. Act Small, 3. Move Quick.
Think Big is about crafting your biggest goal. Act Small is the sequence of milestones you set that you must hit along the way. Move Quick is the time frame you set in place to follow. It is a proven fact that timelines increase goal attainment.
The Act Small goals are the key part that makes this framework so effective.
The small goal part gives specificity and acts as a guiding light towards the ultimate goal. Achieving each of these sub-goals boosts your confidence and motivates you to move at a faster pace.
12OGSM – Objectives, Goals, Strategies & Measures
OGSM is a great goal setting framework. This technique divides your goals into broad objectives, fixed and measurable goals, strategies to guide your actions, and measures to give you a direct way of tracking your progress.
The best part of this goal setting framework above other goal setting methods is that everything fits on one page.
Possibly similar to other ways of looking at goals, the goal pyramid puts your most important, and largest goal at the top of the pyramid, followed by large milestones, medium milestones, and small milestones.
In micro-goals instead of setting one big goal, several smaller goals are set that lead to achieving an overarching goal.
These smaller achievable goals keep you motivated and remind you of the progress you’ve made. You should reward yourself and your employees for achieving small goals and check your progress regularly.
Goal Setting Methods: Before You Start Goal Setting For 2023
Before choosing any goal setting methods for the year 2023 there are a few things you should do which will help you to set better and clear goals.
SWOT Analysis: It is very crucial to identify strengths, weaknesses, opportunities, and threats of your business.
This SWOT analysis will help you to identify how these will impact your goals, objectives, and strategies. Benchmarking – Do research about what your competitors are doing.
This can help you evaluate how your business is performing and provide you basic insight into setting realistic goals.
Evaluate Last Year’s Goals: Evaluation of the previous year’s goal ( if you had any) will help you to identify where you were successful, why you were successful, and how you can replicate that.
You should also evaluate missed goals and the obstacles that prevented them from being achieved so you can plan more accurately for the upcoming year.
Goal Setting Methods: Tips For Setting Goals For 2023
Once you are done with choosing the right goal setting methods that fit best in your organization’s culture there are a few additional tips that can help you be even more successful in reaching your goals.
“Ultimately, logic and clear thinking are probably the best tools for setting goals and motivating an organization properly.” – Tomas Tunguz
Let your employees know your goals: When you make your goals public, you become accountable to everyone who sees them. This promotes transparency and makes every employee accountable to achieve the goal.
Check upon your resources: Be audacious with your goal setting, but make sure you are remaining realistic.
Ask yourself if the resources you have available to you are sufficient for helping you reach objectives? What resources or training needs to happen for you to be properly equipped?
Set deadlines: It can be easy for plans to fall off the rails if there is no timescale in which they are being measured. Having deadlines for every aspect of a project helps to keep everyone focused and on-task.
Also Read: OKR vs Balanced Scorecard: Differences and which one is good for you
Every company is different and needs to choose goal setting methods that work best for them.
In fact, most companies who adopt a popular process change it over time to meet their own needs. So just choose the right goal setting methods and grow your business 10X.