One of the key mantras of a relatively new industry, direct marketing, has been the focus on setting goals and measurement. Google Analytics, and products like it, have quickly become business tools of choice for companies seeking to set goals and measure results. These new direct marketing tools are so effective and relatively easy to use that businesses both large and small can now instantly measure and observe results.
One typical reason goals are often not set correctly is that it can be a difficult process. One of the advantages of professional sports is that the goal of winning is simple, clear, and easy. It is not always quite that simple in other businesses.
Below are a few illustrations of issues to be considered in setting goals:
- In most efforts and organizations there are multiple goals and demands. Prioritization, comparison, and measurement become critical issues. If goals are too simple, they can ignore many aspects of a situation, but if there are too many, there can be a lack of focus.
- Short term versus long term goals is the best example where goals may conflict. A large portion of the financial crises in 2008 for example, were a function of short term greed versus long term rationality.
- The level of goals can also change. On the one hand, goals need to be realistic so that they can be achieved. On the other hand, there needs to be some stretch to provide challenge and growth.
- Communicating goals and their measurement throughout an organization is frequently a secondary priority. Why have them, if you don’t manage them?
- Goals and measurement need to be a tool for business improvement rather than an end in itself. They are not easy to develop or measure but the process is critical to organizational success.
Conclusion
A number of general guidelines should be followed when making goals and measuring them. First and foremost, make goal setting a process and communicate it to those involved. Second, be certain to understand the different needs for different situations. Third, be sure to use clear and simple measurement tools. Fourth and finally, be sure to use the process for improvement, rather than simply as a tool for criticism.
Bert Shlensky is president of www.startupconnection.net and developing a measuring goals is a key factor in helping to develop plans and evaluate programs.