Setting performance goals can be a daunting endeavor. Communicating them and being held accountable for their achievement adds an additional layer of fear and anxiety for many. Yet, doing so may be the single best action one can take for driving greater performance in business or life in general.
Entrepreneurs, especially early in their startup journey, often rely on vague milestones and general growth objectives versus specific, measurable goals or key performance indicators (KPIs). After all, the future for these nascent ventures is foggy at best, making it easy to justify not investing valuable time and energy setting goals for the weeks and months ahead.
However, my experience suggests that it’s during these least-charted times that clear direction and goals are needed for a variety of reasons.
First, the very process of determining goals and deciding which to pursue is invaluable to an early-stage venture. It forces deep thinking, discussion and debates around the company’s direction and priorities. This process sharpens the organization’s focus and helps ensure leadership is aligned toward the same objectives.
Second, implementing specific KPIs enable founders and their teams to materially improve team performance by helping measure progress more effectively. Reviewing results compared to a measurable goal makes it much easier for entrepreneurs and their teams to visualize progress and see whether the current approach is working or if a change is needed.
Third, and perhaps most important, is that clear performance goals can be a guiding mechanism for maintaining company priorities. When leadership is clear and unified on the organization’s top goals, it’s much easier to remain focused and not get distracted by the many issues and opportunities that arise with early-stage ventures.
As the old saying goes, we achieve what we measure. It applies to young companies as much as established ones. Yes, it may take valuable time and effort to establish but the knowledge gained and the inherent benefits generated will prove much more valuable than the time saved foregoing it.
Arthur C. Nielsen, market researcher and founder of Nielsen Holdings, once said “The price of light is less than the cost of darkness.” So, what are your goals for your company and where do you need to shine the light? Allowing goals and accountability to inform your strategy can set you and your company up for a successful future.
John Moore is a principal with Momenteum Strategies, an Upstate-based consulting firm specializing in helping communities and their economic development organizations build thriving, impactful innovation ecosystems.
