Why goal setting often doesn’t work

Here we are, just into a new financial year. Have you set some new goals yet for your business? By any chance are they somewhat of a carbon copy of last year’s goals that you didn’t quite achieve? Why is that? Why do so many goals end up on the back burner and never get delivered on?

A key reason is that most people treat them as a once-a-year event and don’t put an action system around achieving them. The time frame for most goals is 12 months. “By the end of the year, I will achieve X sales, or reach Y net profit”. Excellent goals, but there is no urgency. Mentally you think, “I have 12 months to achieve that, so no hurry”, by mid-May you have forgotten the goal and by the Christmas break, when you remember it again, it’s too late to achieve it.

You need to put an action system in place that reminds you of the micro steps you need to take each week to keep you on the path of achievement. What are the PERFORMANCE GOALS you need to hit that will give you the momentum required? It may be “make five phone calls each week to current or past customers seeking referrals”, or “going through job efficiency training with the team each month”.

Keep the goals alive by logging a diary note to yourself each week to review both your performance goals and your resolution goals. It will only take five minutes but will help keep you focused and less likely to forget the promises you made to yourself.

Another reason goal setting may not work is because it can lead to a narrow focus. When people or organizations are fixated on a particular goal, they may neglect other important aspects of the business that could impact their success. For example, an organization that is solely focused on meeting sales revenue targets, may neglect employee morale, customer satisfaction, or long-term sustainability. This narrow focus can lead to shortterm thinking and decision making that is not in the best interest of the business as a whole.

It can also be demotivating to constantly focus on the outcome goal and often miss it. By focusing on the PROCESS required to achieve the outcome goal and making small incremental improvements, you and your team will feel that progress is being made. Turn your business into one that is focused on becoming a learning organization.

By providing your team with opportunities to learn and grow, they can develop their skills and capabilities, and become more valuable to the company. This can result in increased job satisfaction and a positive impact on performance. With that progress, the outcome goal is way more likely to take care of itself and be achieved.

In conclusion, while goal setting is a widely accepted practice in business, it is important to recognize its limitations and potential negative consequences. Alternative approaches such as focusing on progress, encouraging continuous learning, fostering a growth mindset, and promoting well-being can lead to better outcomes for individuals and organizations. It is important for owners to reassess their approach to goal setting and consider these alternative approaches to achieve success in the long term.

This year make sure you take ACTION on your goals by focusing on a process of constant improvement and see what a difference that will make. Good luck and if you need help in setting and maintaining your goals, give me a call on 027 688 6721, or send me an email to andy@tradescoach.co.nz.