Article originally published in the Philadelphia Business Journal on January 26, 2015
Setting goals as a business unit leader at PQ Corporation, as the company’s CEO and as a board member approving the operational and strategic plans of other CEOs, I have developed a perspective on the annual and strategic goal-setting process. Done effectively, goal setting drives execution and individual, team and organizational performance.
There are six major factors that determine the credibility of any organization’s operational and strategic plans, and the goals outlined in those plans:
- Talent and capabilities of the business unit’s management team, and their ability to execute and achieve results
- Competitive position of the company’s products or services in its markets and the strategies of competitors
- Availability of capital and operating resources needed to execute the plan
- Whether upside potentials are balanced by downside risks and if there is an imbalance, how it is addressed in the goal-setting process.
- Ownership in the plan by the employees who will execute it
- Effectiveness of strategies to achieve results