Strategic Planning for SME’s and Non-Profits
20 June 2024
Cash Flow Management
29 October 2024
Once you have completed your Strategic Planning for Small Business & Non-Profits (previous article), you should have created 3-5 Objectives. More than 5 is not recommended as it creates a prioritization problem. The Objectives are high level statements that will be expanded in detail when you create your Goals. This will essentially be your tactical plan for your business.
You need to ensure that each of your Goals relate specifically to the accomplishment of one of your Objectives. When we say Goals, we mean SMART Goals – Specific, Measurable, Attainable, Relevant and Time-Bound.
Goal setting is a critical process for your business. It is essential that all staff in your business actively participate in the Goal setting. Only goals involving all the staff that created them are likely to be achieved. And remember, Goals are fluid and likely change over time as circumstance dictate. This is an area where the Business Advisory Group can play a role with the business owner.
When we work with small business, we start with each of SMART elements:
- SPECIFIC: It clearly identifies what needs to be accomplished? Who’s responsible for it? What steps need to be taken to achieve it? For example, a vague goal might be “Improve customer service.” A specific goal would be “Decrease customer complaint response times.”
- MEASURABLE: It clearly quantifies your goal. It identifies How much? How many? How will we know it’s been accomplished? How will we measure it?
- ATTAINABLE: This is really a reality check. Is it a goal your business can reasonably accomplish, given your resources.
- RELEVANT: It clearly answers questions like: Why are you setting the goal? Does this seem worthwhile? Is this the right time? Does this match our other efforts and needs?
- TIME-BOUND: This means that the Goal has a start and finish date. It measures success – you and your team need to be agreed about when a goal has been reached.
There are two additional items that the Business Advisory Group recommends adding to these SMART Goals:
- LEAD: Who is the person assigned to ensure that this goal is completed? It may or may not be a member of the management team but whoever is assigned must agree with the SMART Goal.
- RESOURCES: This is often overlooked in the Goal setting process. It clearly identifies the business staff required, the funding, the tools or equipment, any external resources
The Business Advisory Group has developed a Goal Worksheet that allows us to help your business to properly focus on each of the SMART elements. Our process recommends that each staff member create their version of Goals based on the defined business Objectives and enter them on their own Goals Worksheet. Make sure they each complete all sections of the SMART elements.
Business owners now must review the consolidated list of all Goals submitted and prioritize them according to their business Objectives. The Business Advisory Group has developed a methodology that assists the business owner evaluate each of the Goals and decide on the IMPACT for their business.
As a last step and most importantly, review your Goals to ensure that they align with your objectives. Sometimes Goals are not aligned, so a redraft of the Objectives needs to be done.