Five management tools to achieve goals in difficult economic times
Contents
- 1. Develop a strategy: It always starts with a strategy that defines the future target state
- 2. Agree on goals: Goals are derived from the strategy and specify what can be achieved in the current financial year
- 3. Cascade goals: Goals can only be effective if they are communicated, agreed upon and anchored throughout the entire organization
- 4. Communicate and anchor goals: Goals must remain present and therefore require regular communication
- 5. See and manage deviations: Consistent deviation management is part of your management task
1. Develop a strategy: It always starts with a strategy that defines the future target state
Particularly in economically challenging times, a medium and long-term orientation of your company in the form of a strategy is critical to success. The countless definitions of the term strategy can be summarized in one sentence:
A strategy is a collection of documents, images or other media that describes the future state of a company in a way that provides members with guidance in achieving that target state.
A strategy thus reflects the future orientation of a company and provides orientation to all members. In our dossier “Strategy development: An introduction for specialists and managers” you will find instructions on how to define a strategy and what you should pay particular attention to.
2. Agree on goals: Goals are derived from the strategy and specify what can be achieved in the current financial year
Annual goals can be derived based on the strategy. These usually include different categories and dimensions such as financial goals, sustainability goals, efficiency goals, quality goals, etc. Within these categories, qualitative or quantitative goals can be defined, which are described either using concrete measurements (e. g. Key figures) or, in the case of qualitative goals, via a detailed description of the target state to be achieved.
In addition to content-related goals, you should also define behavior-related goals depending on the level of development of your company. This allows you to work with your team not only on content, but also on their skills. For all goals, it is critical to success that they have a high level of acceptance within the company. In addition, it has been shown in recent years that team goals are superior to individual goals under certain conditions.
3. Cascade goals: Goals can only be effective if they are communicated, agreed upon and anchored throughout the entire organization
After the goal categories and goals have been agreed and anchored at the company level, the next step is to cascade them throughout the organization. The focus of this process is the communication, agreement and anchoring of goals across all hierarchical levels and teams. Accordingly, the goals are adapted to the respective context without losing connection to the overarching corporate goal.
For example, sales and earnings targets can be specified for individual business lines, teams, functions, etc. This gives them additional traction and makes “sense” from the perspective of the respective teams. Communication between all those involved on an equal footing and a high level of trust and psychological safety play a special role.
4. Communicate and anchor goals: Goals must remain present and therefore require regular communication
In order for goals to actually make a difference in your company, you need to communicate them regularly. The principle “Repeat, Relate and Reframe” applies, i. e. That goals are repeated regularly, referred to and communicated from different perspectives. It is important that this communication is part of daily business. By naturally embedding the goals into your daily work, you will build positive momentum in your company.
5. See and manage deviations: Consistent deviation management is part of your management task
Your annual goals are an important input for company management. This includes a regular comparison of the goals with the actual variables in order to identify deviations at an early stage and derive measures from them. Holistic business performance management platforms like AgilityVisual enable you to visualize all necessary target and actual variables as well as measures and projects. This means you have all the information on one platform and can concentrate fully on achieving your goals together with your team.
Achieving goals in a difficult economic environment is the ultimate management discipline. There are many patent recipes that promise short-term success. Only a few keep what they promise. Instead, there are effective management tools that consistently have a positive effect on a company's performance over many years. Understanding these and implementing them consistently and disciplined is the key to reaching the finish line first despite strong headwinds.