Strategy Essentials: How to set goals?

No strategy- no direction; No direction- no impact  What a juicy word ‘Strategy’ is. But what comes to your mind first,…

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by Sabina Babayeva 29 April 2019

No strategy- no direction; No direction- no impact 

What a juicy word ‘Strategy’ is. But what comes to your mind first, when you are thinking about strategy? Complicated; too many tabs open; easy to start difficult to finish? But in fact, its complexity is more often overestimated. And I think it has been done intentionally. 

No strategy- No impact 

How to make an impact if you don’t know where you are moving to? I don’t think it’s possible to achieve or change anything if you don’t even know what the final destination will be. So, think about your final point first. This is what strategy is. Then, choose the direction to reach it and make a change

Big stones first 

Goals are Big Stones in your jar

First, you have to feel the jar with the big stones. Think about 3 major goals you have for your strategy. Imagine them as much real as possible. Set solid goals and link them to the solid numbers. Of course, no need to say that these goals should be also connected with your business priorities and company vision. 

  • Increase 
  • Reach
  • Raise
  1. Increase – How much? If you have 100 clients is your goal to get 200 more?
  2. Reach – Number? Rate? Reach $1M annual revenue? 
  3. Raise – Number? Rate? Raising awareness 50% among corporates

Support ‘Big stones’

Now let’s think of each goal in details. What might support your big stones? This is exactly the time, when it comes to objectives. Every goal has its objectives to be more achievable

Increase – How much? If you have 100 clients is your goal to get 200 more?

  • 50 new clients from Europe 
  • 50 new clients – SMEs 
  • 50 new clients – SMEs based in Eastern Europe
  • 50 new clients – with annual revenue more than $1M in textile sector 

Think SMART 

What can be a good indicator that your goals and objectives are selected properly, you will ask? I will tell they should be measurable, first. And still naive, but they should be SMART. Where;

S for – Specific. Try to breakdown it as much as possible. Think about every detail. Numbers and deadlines are important.

M for – Measurable. Nothing is important if you cannot measure it. How can you track it then? And think about it while you are setting the goals. Are there any tools to measure the goal; or you need to check for something new. 

A for – Achievable. Be honest with yourself. No boss is expecting fantastic numbers from you. It’s better to grow healthy but sustainable. 

R for – Relevant. See above. Your goals should be connected with the vision and priorities of the company. 

T for – Timed. Set the timespan. No plan is made without the timeline. 3 months; 6 months; 1 year. This will help you to plan accordingly, and maybe use proper time management tools. 

How to measure? KPIs

KPIs or Key Performance Indicators

KPIs are Key Performance Indicators; value for you to measure how effective your strategy and business are. Numbers you set once and follow during some period of time. Of course, KPIs might change, because when as you are growing you are, most probably, reaching what you set and move forward. Here are the most common sales KPIs to track;

  1. Lead generation
  2. First response time
  3. Number of accounts contacted/engaged
  4. Average revenue per account (ARPA)
  5. Churn rate