As any small business consultant can attest, organizations tend to fall into two extreme categories: Either they set no goals, or they set far too many.
The former group is too scattered to see consistent business growth; they have no direction, no real marketing strategy planning or any other long-term vision. The latter group, with too many goals, is repeatedly disappointed when they can’t hit their targets, which were unrealistic in the first place. (As Verne Harnish points out in his book Mastering the Rockefeller Habits, “The organization with too many priorities has no priorities.”)
Fortunately, there is a middle path: setting a realistic number of quantifiable goals to be achieved throughout the business year (or quarter, depending on your rate of growth). Following, you’ll find tips on setting strategic priorities for your small business. Consultant firms can provide additional strategic insights beyond the tips we’ve provided below.
The Power of Five
As many a small business marketing consultant can verify, the magic number for priorities is five. If you set five priorities for your business, chances are you won’t feel overwhelmed or under-challenged. The first step for setting your organization’s top five priorities is to think about your long-term goals and how they flow within your company’s quarterly rhythm.
There are many approaches for discovering long-term goals; Harnish, for instance, recommends creating a one-page strategic plan that includes core beliefs, a main company purpose, 3- to 5-year targets and annual goals needed to meet those targets. Most likely, you will play around with the format of your overall vision until it works for your organization. The point is that it’s important to dedicate time to understanding your company’s main reasons for existing. This kind of background work will help you define the five strategic priorities you want to work on for the current year or quarter.
The Importance of Measurability and Scalability
As you create your list of five priorities, ensure that each goal is quantifiable. You must be able to measure whether you accomplished each one at the end of the year or quarter. For instance, “sell more” is not a good priority because it is too vague. This goal is completely open to interpretation – one person might say you’ve reached your priority if you sell a single dollar more than you did last year, even if your costs are higher. Another employee might argue that “more” should mean something completely different.
Your goals should be specific enough that you can easily determine whether you’ve met them or not. Here are a couple of examples of precise, quantifiable priorities:
- Take our website live.
- Complete a competitive analysis.
- Earn $500,000 in revenues.
Don’t fence yourself in too strictly. For instance, if all five of your priorities are aimed at one huge problem in the business, that’s fine. Let’s say your client base is dwindling – it’s completely appropriate for all of your priorities to be based around marketing strategy planning. The main thing is to choose five priorities that are measurable and attainable. Will your company be able to scale up if all five goals become reality? Make sure you’re prepared to actually launch into the future you imagine.
Timing is Key
Avoid making assumptions about how quickly you’ll be able to achieve your priorities. Spread them out over the year, quarter or whatever timeline you’ve chosen. Remember that you and your employees will need to accomplish these special items in addition to your typical workload.
Review Strategic Priorities Regularly
The frequency with which you revisit your goals depends on your growth rate. For instance, a small business marketing consultant would recommend reviewing old goals and setting new goals on a quarterly basis if you are in a fast growth pattern. (Harnish defines “fast growth” as 20-50 percent per year.) At minimum, your strategic goals should be reviewed annually.
Once your list of top five strategic priorities is solid, be sure to share it with everyone in your organization. Indeed, it may be helpful to have every employee create his or her own set of five priorities that can help the overall company meet its goals. Harnish refers to this approach as “alignment;” in a sense, it’s bringing integration to an entire firm by ensuring that everyone has their eyes on the same prize.
A small business consultant can be an invaluable asset to have on hand as you set your priorities. A small business marketing consultant, for instance, would be able to assess whether your sales goals are achievable. And he or she would probably have a handful of ideas on how each department or company can help boost your sales figures. Finally, when it comes to “big picture” marketing strategy planning, a small business consultant can provide an unbiased outsider’s view of how your firm is performing and what steps you can take to realize your dreams.
[ photo by: birgerking ]
