Are you interested in using the smart formula to create North Star budget goals for your business and associates? Well, sit back and take a moment to read about the smart formula for goal achievement.
If you don’t know the direction you’re going, you will never get to where you want to be. Directionless is a terrible way for your business and associates to go through a day, a week, a month, a year. What can you do about it? I am so glad you asked!
Start Big and Break Things Down
First, you must create and set the business’s budget goals for a given year — the specific business expectations for sales and operating expenses. Five years of goals are even better (hint hint).
Next, break down the budget goals to specific weekly and daily expected numbers: sales, margins, gross profit, productivity, billed hours, payroll, etc. You must be diligent about measuring and tracking these numbers.
Finally, break down the budget goals you set for weekly and daily expected numbers to the expected contributions each associate will perform to achieve the daily and weekly expected budget goals.
Non-ATI members: Do you know how to turn your budget goals into smart goals? Start with ATI’s smart Goal Worksheet.
Communication is the key—plan for weekly one-on-one meetings with associates. Team meetings should be weekly / monthly. Performance reviews should take place quarterly, semi-annually, and annually. Track, measure, monitor, adjust, and maintain forward momentum through constant communication.
Now, I can hear what your mind might be saying right now, “How will I be able to whittle down the numbers like that?”
Allow me to share the steps to properly set budget goals and expectations for the business and the entire team. Following this formula will help you achieve the budget goals.
What Makes Goals smart?
The key to successfully creating your business’s and individual associates’ budget goals is to ensure you follow the smart formula.
S – Specific. Be precise with the exact amounts and benefits you want to accomplish. Create a compelling reason to pursue the goals.
M – Measurable. It is crucial for all goal achievement that the goals’ specifics are tracked and measured. This helps you monitor progress towards accomplishing the goals.
A – Attainable. Setting giant goals can be cool, but they can act as a de-motivator when they are unrealistic. Set goals that challenge and encourage the “reach or stretch factor” so goals will be doable with effort.
R – Relevant. Before you set the goals, be sure to align with the business’s values and mission and each associate when determining the associate’s personal contributions. It will allow the associate to set goals that will matter in their view, not just the businesses’ view.
T – Timebound. Be sure to set a timeframe within which associates will accomplish the goals. Set deadlines for the journey that will compel the associates to continue making progress toward achieving the goals.
When you set smart budget goals, you break down the specific parts of the goals and assign those to individual associates to ensure the associates know their individual accomplishments. The associates must know how they contribute to the successful completion of business goals. The associate will then feel the work they accomplish weekly and daily is critical to achieving budgeted business goals. The business is only as successful as the team working together to achieve the budgeted goals every year, month, week, day.
Remember, smart is used for all goals you set: processes, behaviors—anything you want to achieve, not just the budget numbers. And be sure to include your associates in planning for and discussing smart goal setting. Smart may even inspire associates to set other goals that will enhance the business and help achieve the written budgeted smart goals. Then full steam ahead to your success. Enjoy the process!
Non-ATI Members: Get ATI’s smart Goals Worksheet with definitions, examples, and the format you need to start writing your own smart goals today.