Entrepreneurs’s brew – The power of goal setting
Goal setting definition suggests that goal setting is divided into three parts or stages: namely, short term, medium term and long term.
Pastor Welcome Thamsanqa Mlungisi Dlalisa
Last week, we spoke about the power and the importance of having a vision. The vision sets out the “where” – which is short term and also long term.
This week, we tackle goal setting, or target setting, which is a tool that helps you to break your broader vision into smaller manageable targets, from one year up to five years.
Before we explain how to set business targets, we need to define and describe what goal setting is. It is the process of deciding what you want to accomplish and devising a plan to achieve the results you desire. For entrepreneurs, goal setting is an important part of business planning.
This goal setting definition suggests that goal setting is divided into three parts or stages: namely, short term, medium term and long term.
Once you have defined your vision (where your business is going) then you need to plan how you will get there over the short, medium and long term. It is important to have a long term plan too. This will help you to think strategically and into the longer term concerning the future of your business.
The short term usually relates to your projects and initiatives for the first year. The medium term plan is usually two to four years and long term usually five years or more.
In addition, as part of your short, medium and long term plan, you need to determine your measurement criteria as this sets out “how you know if and when you meet your goals”. Those who measure your performance will use this criteria, which is set out upfront. It is also known as “key performance indicators”, or KPIs. Some organisations use the balanced score card as their tool to measure organisational performance and individual performance is measured through an “individual performance plan”. The BSC has the following elements which are constantly measured, namely: financial, internal business processes, customers and learning and growth.
The unfortunate reality is that most SMMEs set only financial goals and measure only these. This approach is not holistic. It lacks goals on learning and growth, customers and internal processes. Unfortunately, anything that you have no measurable targets for, you will not do. This means that your people will not develop their skills in line with learning and growth and you will not grow your client base or develop or introduce better internal processes. The reason is that if your success is not measured along these lines, all you do is grow your profit margins (financial measure).
Let me come back to goal setting. All goals must always follow the SMART principle. This means:
1. S: means specific, significant, stretching.
2. M: means measurable, meaningful, motivational.
3. A: means agreed upon, attainable, achievable, acceptable, action-oriented.
4. R: means realistic, relevant, reasonable, rewarding, results-oriented.
5. T: means time-based, time-bound, timely, tangible, trackable.
The reason that big companies seem to get bigger and better (internal controls and efficiencies) is that they have vision and also set goals (short term, medium term and long term) which are reviewed annually.
Once again, I have started a programme called Joseph Achievers Mentoring (JAM). This programme is based on Joseph in the Bible who rose to a strategic position as the result of a dream that he had. The programme is aimed at supporting all residents of Tembisa. It targets mainly young entrepreneurs, young professionals, university students and high school learners.
It offers a range of support initiatives, including career guidance, training and mentoring. Many have enrolled and receive business management training and mentoring. Miss Thandeka Langa, a former learner at Tembisa West Secondary School (class of 2016) and a student of the JAM programme, has won a full bursary to study business management in 2017. In the next issue of Tembisan, I will share more on this story. I challenge you to enroll for JAM in order to propel your business to new heights, or even as a student. To register for JAM, email dlalisa.rhi@gmail.com or contact me on 083 395 1165.
