As a CEO, I’m constantly astounded by how many of my colleagues don’t develop or document their annual goals. How can they determine whether they are on course? If their businesses are succeeding? If they’re accomplishing their goals? No objectives, no guidance.
Setting goals is not only beneficial but also necessary for me. It gives me direction, clarity, and a sense of purpose that propels me forward in both my personal and professional lives.
I set aside time every November to formulate my objectives for the upcoming year. I am aware that it requires time, consideration, and concentration; it is not a simple task. However, I am also aware that this process has yielded numerous benefits.
You can begin using my tried-and-true, three-step goal-setting process right now.
Why CEOs Cannot Negotiate Goal Setting
Let’s face it—juggling flaming swords while riding a unicycle is what it’s like to be a CEO. From managing a team to launching new products to hitting sales goals, there’s always something vying for your attention. It’s simple to lose yourself in the daily commotion.
Without objectives, you’re essentially operating automatically, responding to urgent situations instead of concentrating on what matters. The harsh reality is that you’re leaving your company’s success up to chance if you’re not leading it in a clear direction.
Setting goals is more than just a chore to complete. The one thing that guarantees your business is moving in the direction of long-term success is your leadership compass. It offers focus, clarity, and a concrete means of tracking advancement.
Consider this: How can you tell if your business is doing well? How can you determine whether your personal life is balanced? You won’t have those answers if you don’t set goals.
Setting goals is more than just a business strategy for me; it’s a personal habit that has helped me stay grounded as a leader and a person. It takes intention, but it’s not difficult. Let’s explore my method.
List Your Top Two Personal and Professional Objectives
Setting too many goals is the biggest error I see CEOs make. You wind up focusing on nothing when you attempt to focus on everything. Rather, I suggest reducing your list to two primary business goals and two primary personal goals.
Why just two? Because nothing is truly a priority when everything is.
This is how I go about it:
I take a blank sheet of paper and ask myself a big question every November: What is the most crucial thing my business needs to accomplish in the next three to five years? This turns into my long-term strategic objective.
I turn my attention to the upcoming year after I have that long-term goal in mind. I come up with ideas for the precise actions that must be taken in the upcoming year to get us closer to that major objective. I finally settle on two specific business objectives for the year after some refinement.
For instance, one year I set out to introduce 18 new courses to expand our SAP eLearning catalogue. All of a sudden, that long-term revenue growth vision felt real and achievable.
I then turn my attention to my personal life.
Why? Because I am aware that when I am content, healthy, and present outside of work, I perform at my best. I therefore set two objectives for myself that promote my general well-being.
My personal objective for the year was to improve my work-life balance. This required establishing limits, such as not sending emails on the weekends and leaving work after lunch on Fridays. Small adjustments, but they had a huge effect.
The most important lesson is that your objectives need to be clear, attainable, and significant. They ought to challenge you without becoming too much for you. Additionally, you will lead your business from a position of strength when you strike a balance between your personal and professional priorities.
Divide Objectives into Quarterly Benchmarks
The most common mistake people make is setting a lofty annual goal—and then stop moving. They don’t know where to begin, and the goal seems too big and far away.
For this reason, it’s crucial to divide your objectives into quarterly benchmarks. You concentrate on one leg at a time, much like when you divide a marathon into four smaller races.
Allow me to demonstrate my method.
Consider my business objective, which is to introduce 18 new SAP eLearning courses within a year. It’s overwhelming if I look at that number all at once. However, it’s much easier to handle if I divide it up into quarterly goals:
• Quarter 1: 4-5 new courses
• Quarter 2: 4-5 new courses
• Quarter 3: 4-5 new courses
• Quarter 4: 4-5 new courses
All of a sudden, I’m not gazing at an impossibility. I know exactly what to aim for every quarter, so I have smaller hills to climb.
Let’s now examine a personal objective.
Let’s say I want to improve my work-life balance. That’s quite ambiguous, isn’t it? I therefore divide it up into concrete steps I can do every three months:
• Quarter 1: Leave work after lunch on Fridays.
• Quarter 2: Weekend emails are not accepted.
• Quarter 3: Take one weekend trip with my wife.
• Quarter 4: Plan a trip for the end of the year.
I feel more in control and like I’m making progress because of these little accomplishments. I can look back at the end of each quarter and see that I’m making progress.
What’s the best part? Setting milestones for your goals allows you to make adjustments as you go. You still have time to make adjustments before the year ends if something isn’t working.
Establish and Monitor Metrics (Because What is Measured Leads to Action)
A goal is just a wish if there is no way to gauge its progress.
This is something I discovered the hard way. I used to set lofty objectives but not regularly monitor my progress. You know what happened? Because I couldn’t see how far I’d come or how far I still had to go, I would lose steam by the middle of the year.
I now monitor metrics on a monthly basis.
Let’s return to my example of SAP eLearning. If my objective is to introduce four to five new courses every three months, I keep track of the following each month:
• The number of courses we’ve introduced.
• The number of lesson plans we have authored.
• The quantity of audio recordings we have finished.
I can tell by these metrics whether we’re on track or if we need to accelerate.
The same is true for individual objectives. Assume that leaving work after lunch on Fridays is one of my accomplishments. I keep track of how frequently I really do it. Every week, there is a straightforward yes/no check-in.
This is important because monitoring metrics helps you stay truthful.
When you’re not making progress, it’s simple to tell yourself that you are. But there’s no hiding when you have unambiguous data in front of you.
Although every CEO ought to have a fancy dashboard—more on that in a later post—don’t worry if you don’t have one just yet. For the time being, a notebook or even a basic spreadsheet will work.
Just keep in mind:
• Establish quantifiable objectives.
• Regularly assess your progress.
• If necessary, change your direction.
I promise you that just taking this step will change the way you approach goal setting.
The Success of Your Business Begins with Your Objectives
Setting goals is one of the most effective aspects of being a CEO, even though it may not be the most glamorous. You’re just guiding your business aimlessly through never-ending to-do lists and unforeseen obstacles if you don’t have a clear destination.
You’re not just making plans when you take the time to establish your objectives, divide them into milestones, and monitor your progress; you’re building a road map for success.
Yes, it does require time. Every November, my procedure typically takes two weeks. It’s time well spent, though, and I can’t emphasize that enough. I’ve personally witnessed the transformative power of a well-considered, methodical goal-setting process in both my personal and professional life.
Put this on your calendar right now. Choose a time to sit down and begin this process. When you do, keep in mind that your objectives serve as the compass for your business. You can accomplish anything if you have the correct focus.
