Effective goal setting is the foundation to every successful business. By setting goals we are able to determine our priorities, get organized, and focus our attention and direction to realize our dreams. What's more, goal setting and measuring allows you to determine whether or not you are on track in reaching your aspirations.
To accomplish your goals, you need to know how you set them. "SMART Goal Setting" is the very first step to achievement. In this webinar, you will learn about the importance of goal setting and how to set SMART goals. SMART goals are: Specific, Measurable, Attainable, Relevant and Time-based. By the end of this webinar, you will understand the science of goal setting and know how to drive and motivate your team to achieve your goals.
Today we are going to talk about goals. When we talk about goals, sometimes businesses have no goal when they move forward. The basically do everything ad hoc. They make a decision today, they decide to do it. They move forward but they are not sure if they are actually moving forward or they are not moving forward. The reason for that is there is no set goal in the business. Some other businesses some other businesses have problems setting up the proper goals. Sometimes they set a goal which is vague, they don’t know. They just say we want to grow this year. That’s not a goal. Or some other business they have a problem setting up a goal which is not doable. Meaning a studio or a school has too any students and they set a goal; we want to get to two hundred students by the end of the year. That is not a goal. So today we are going to talk about how you should set up a proper goal for your business. In order to achieve those goals, how you should approach and where you have to go.
I’d like to start my presentation with the famous quote from Bruce Lee. He says “A goal is not always meant to be reached. It often serves simply as something to aim at.” When you set up a goal it has so many different components. Of course the focus should be, you have to set a goal, you have to reach it and repeat it. That is what I always tell my team. Set a goal, reach, repeat. And that’s how you can win. But let’s talk about a goal and see what a goal means for your business. The moment you focus on a goal. Your goal becomes a magnet pulling you and your team towards it. The more focused your energy is the more power you generate. Just think about five or six people who are sitting on a paddle boat. If everybody is paddling from one side the boat won’t move forward. However, if everyone has one goal and they want to reach a destination and they all paddle with the same rhythm, the boat moves forward. So it’s very important that the goal is clear for every single person in your team and everybody is doing their piece to move your business forward toward that goal.
Let’s look at it from a different angle. Let’s say you set a goal. What are the different things that that goal will do for your business? First of all, it gives you a direction. You and your team know why you go to work every day. What is it that you are trying to achieve? The direction is very important. Some of the businesses don’t move forward because they have no direction. If you ask the employees, what do you do today? They are going to talk about some task. But if you ask them what is the purpose of doing this? They have no idea. Of course they cannot possible help you or help any other business owner to move forward to get to the goal of the business.
When you set a goal it will energize you. Why? It doesn’t matter if you achieve it or you don’t achieve it. Every single day that you wake up there is something to fight for. Every single day that you walk into your school, into your studio, you know exactly what you want to achieve. You fight for it to get it. Every single day and every single task is like a fight. It’s like a competition. You are competing to win. Yes, there are so many tasks or short term goals involved in order to reach your long term goal. However, the business becomes boring. It becomes boring for the owner. It becomes boring for the manager, it becomes boring for employees.
When you have a goal there is always a challenge. Sometimes we want to challenge ourselves. I just had a talk with one of my co-workers the other day and I was trying to tell her, in order to get there, if you think it’s impossible you know yourself better. Challenge yourself. Challenge yourself, try to achieve what you want to achieve. And interestingly enough, she did amazing. Every single day, on the topic that we talked about, I see how hard she tries to challenge herself in order to get even the small task. So now imagine if you had a bigger goal. The goal will help you to challenge yourself; it will help your staff to challenge themselves to move forward.
Sometimes when you set a goal you try harder and harder and harder but it doesn’t work. If you have a goal and you know what your destination is, you will think outside of the box. If you want to go from destination “A” to destination “B” and you move forward but you hit a wall. It doesn’t matter how much you push you cannot pass that wall. Because you know you want to go to destination “B” the situation forces you to think outside the box and then you see what exactly you need to do in order to around it to achieve your goal.
Before we get into the detail, first of all you need to identify a goal. In a few minutes I'm going to tell you what should be the different things that you need to think about before you set a goal. Number two - you need to make a plan. You want to go from destination “A” to destination “B”. You know your goal is destination “B”, what are the plans? It should be known. Then you have to constantly monitor. Constantly monitor to see if you are moving toward your goal. Don’t leave it until last minute. Don’t leave it until the end results. Then based on the reports or KPI’s or different reports that you look at, take an action. Either you invest more time, energy or money in the way that you’ve gone so far or change the way. Think outside of the box.
What is the SMART Goal? When you set a goal it has to have five different characteristics. Number one: your goal has to be specific. It has to be specific so it will push you moving forward. Great goals are always well defined and focused. It always has to be, again, well defined and focused. For example, when you say I want to grow my business, that’s not a goal. But when you say I like to gain twenty new members by the end of the month, that’s more meaningful than just saying I want to grow my business. So when you set a goal, make sure it is specific.
It has to be measureable. A goal without a measureable outcome is like a sport competition without a scoreboard or score keeper. Numbers are an essential part of the business. Put concrete numbers in your goals to know if you are on track. If you say I want to grow by twenty numbers, it is measureable. But if I say I want to grow my business; how do you want to measure that? If you gain one student or one member you’re growing. But are you happy with that? Is it exactly what you are looking for? So it has to be measureable.
The “A” in SMART Goal, some people say it should be for “Actionable”, some people say it has to be “Attainable”. When I say attainable I mean the goal that you set has to be realistic. Far too often small businesses tend to set goals beyond their reach. No one ever built a billion dollar business overnight. When you say attainable; don’t set a goal that every single day and every single year yourself and your team feel like a loser at the end of the year. Why that’s because you are not achieving your goals. It’s not because your business is not growing. It’s not because your team is not participating or not trying hard. It’s because the goals that you set are not realistic. The goal that you set has to be realistic. It shouldn’t be easy to reach. But it has to be doable.
The goal has to relevant. Sometimes the goal that you set is reachable but you have to look at the situation today. You have to look at the current condition. Sometimes you may desire to have your best year in your business and increase your revenue by 50%. But if the recession is looming and three new competitors are opening in the market then your goals are not relevant to the reality of the market. So make sure it’s relevant.
The best way to do it is set your goal based on previous data that you have. Based on the previous year, same month, same scenario, add a percentage to it and then set your goal.
And lastly, the goal has to be time based. It has to have an end point. It has to have a deadline otherwise you can say, I’ll achieve my goal. Next year we talk and, still fighting, I’ll achieve that goal. Five years moving forward you haven’t reached your goal and you know why? Just because you never put a deadline, a hard stop for it and the deadline for your goal in order to achieve that.
So these five characteristic has to be involved in your goal. So, for the people who are listening to the webinar right now, if you can type in the chat box that based on these five characteristics, how many of you today have a SMART Goal until the end of the year? Type yes, or no so I can have better idea as far as how you are doing with your goals. I see a lot of no’s and it’s not a bad thing. I’m so happy that you are so realistic today and you are not trying to fake yourself. The very first step to being better is accepting the facts. Awesome, so, 60/70% of the people in this webinar said no and you are in the right webinar. So hopefully, by the end of the webinar you will be able to spend some time to create your goals.
When you set a goal, always break it down. Meaning; you say, I want to gain twenty members by the end of the year. What are the shorter goals? What are the smaller tasks that are involved in order to get twenty members? So you look at your numbers and you say; In order to get twenty numbers, my conversion ratio from intro session to new students is usually 80%. So based on that; set a number for your intro sessions. That’s your goal - you need to book this many intro sessions. Then look at what is the conversion rate from the appointment that you make to intro sessions. Based on that, you are going to set a goal for yourself for booking appointment. And then lastly, you will see; what is the conversion rate of number of the leads that you get to booking appointment? So based on that number; you are going to set your leads. So what I did was break it down. First of all, it’s easier for me to identify to figure out if I am on track in order to achieve my goals.
Second of all, I did the reverse engineering to figure out what is involved for me to get to twenty members. I don’t need to wait until the end of the year and say, you know what, I didn’t achieve my goals. No, because if I set my goals, for number of the leads, for number of intros, for number of appointments and I break it down into monthly, weekly and daily, every single day before I go home and before my staff goes home they know if we are on track or not on track. If we don’t hit our goal today it is easier for everybody to recover from that for one day missing rather than six months missing. So break it down.
Those of you who are using PerfectMIND, Dashboard is providing that to you. It can easily tell you, set your goals based on monthly, weekly or yearly and then PerfectMIND will tell you what your goals should be. Then break down those goals within your team based on their performance. Don’t have the same expectation from everybody. Again, the expectation has to be realistic. Now, staff and new employees play a big role in order for you to achieve your goals. Let’s talk about that. First of all, always share your goals and your targets with your staff. Never just tell them what to do. Make sure they understand the reason for their coming to work every day. Share your goals with them. Get their buy-in. if they feel like a partner they will work harder. If somebody asks them:
Why do you stay in the office until eight?
They are not just going to say; because my boss asked me. They’re not just going to say; because that’s my job. They’ll say: You know what? This is our goal as a team.
This is my part and I don’t want to fail my team mates. I don’t want to fail my team. So always share your goals with your staff. Make sure they know exactly what you are looking for. Break it down for them. Assign tasks and smaller goals. ‘Hey Johnny, we need to get twenty students by the end of the year. You are the best person for intro sessions because your conversion rate is 85% so here is your goal. I need you to convert one student per week in order to get there. Can you do that for me?’
‘Awesome.’ So now I set a goal for Johnny. Johnny knows his goal is helping our company’s goal so he is motivated. Break it down, set smaller goals.
Always monitor and review. Have a daily huddle with them every single day. This is my goal. What is your goal Johnny? What is your goal tom? Day after, ‘Did we achieve our goals?’
‘You know what? I couldn’t achieve my goal because of this, this, this and this. But I’m going to fight to get it today.’
‘What about you Johnny?’
‘I actually achieved my goals.’
“Awesome everybody; tom did you achieve your goal?’
‘Because of this, this, this.’
‘Awesome that you know what the reason is; here is a quick advice for you. Go in a fight for it today.’
Always monitor and review. Do not let it go all the way until the end of the month,
Train and teach. Your employees, you look at them as an investment. The younger people like to learn. Teach them even if it takes you two hours of studying every Sunday. Read a blog or talk to a colleague, it doesn’t matter what it is but always teach your staff. They have to grow. If you want your business to grow they have to grow.
Compensate them accordingly. Compensate them properly. Your pay structure should be supportive of that. They should be your partner. If they don’t produce anything it won’t help. Do not save pennies to step on dollars. Don’t say, you know what, I’m not going to pay anything per intro session. At the end of the day they are going to have only two intros. But if they have ten intros you will make more money. So compensate them accordingly. Make them motivated.
Update them. Let them know where we are at with our goals. ‘Hey guys, we are right on track, great job everybody.’ ‘Guy’s we are behind.’ Don’t blame them. But find out what is the reason. Share your ideas with them. Always ask for their input. At the end of the day they are doers. When you set your goals try to ask them what they think. You won’t always do what they ask but if you are not doing what they ask explain to them why. But I guarantee you, if you start this open communication you will learn so much. Your goal will be set and just because they see that they have an input in your goals, they will fight hard to help you because now they are responsible. You already trust them. At the end of the day you are the one who is going to set the small goal but you can get their input.
Build a culture of appreciation in your office. That’s huge. If anybody does anything for you, appreciate it. Sometimes you set a goal, ‘Johnny you need to do this.’ Johnny is so excited he comes to and he says ‘Hi sir, this is what I’ve done.’ Don’t just say ‘Okay, this is your next goal.’ No, appreciate it. Let him feel appreciated. Sometimes money is not everything. Sometimes you need to make them feel comfortable. I personally like to enjoy my time with all my staff, with all the employees. Put the title aside, we can be friends. It’s amazing when they care for you beyond work and you care for them beyond work. Then the work will be easy. Always build a culture of appreciation in your team. And they always look at you. And one thing, don’t expect a change if you don’t make a change. Whose team? It starts from you and goes all the way down. When I come to the office and I feel my team is down and they tell me that it’s a negative energy in the office today. My first question is, what did you do for that? Team is us. We have to fix ourselves first, and then we can expect everything else to be changed.
Always make it visible and public. This is a common practice. When you have a personal goal in our life like, I want to lose weight for example. I want to be in shape. The best thing is to talk about that goal with three of your friends. When you say it, now you have to be committed. Sometimes we are not committed to ourselves. I can say when I used to play basketball at the professional level, that’s been my key. Every time I talk to my coach, when I set a goal, he made me accountable to achieve those goals. Every time that I was thinking with myself I didn’t want to say it because I have a fear of not achieving with it. No-one held me accountable. Sometimes it’s hard to say it but say it, if your goals are small, make it public. Talk to three of your friends. Summer is coming and you want to get in shape. Talk to three of your friends. This is my goal, this is my goal, and this is my goal. I don’t want to drink. Talk to three of your friend. I guarantee you next time you are sitting at the table with people that you are hanging out with, when you order the first drink, one of your friends will as why. Didn’t you tell me you are not going to drink? That’s enough for you to have a reminder.
Now, you have to do the exact same thing in your business. Make sure to have a goal whiteboard posted in your office. That can help as a daily reminder to keep yourself and your employees focused on target results and then break it down. ‘Guys, this is our goal for this month, number of the new members or students, number of the booking tours or booking intro’s, number of the shows, number of the upgrades, number of the renewals.’ And then break it down between your team. Every day, make your staff go on the board and write down the numbers that they make right in front of the goal. If they are not hitting the goal after the third day, either they fix themselves and they try to find a way to achieve those goals or I guarantee they have hard time to go on the board. Even yourself, put your goal on the board. If it’s measureable and there is a deadline, shorter goals.
Always have a quick huddle in front of the board. Go over the numbers, set the goals, and see how far you achieve them. Help them, teach them, and train them. But I have a… The F.I.O. is something that I have my… all the people that work with me have it under their desk. Figure It Out. You figure it out. If I have to figure out everything, why do I need you? You can think better than me. You do this every day, figure it out. What is the worst of worst? You make a mistake; mistakes are mistakes only if you repeat them. If you make a mistake and you learn from them it’s okay. Figure it out.
Be a leader, don’t be a manager. Leader leads by example. They work hard. They are part of the team. Manager, they will tell what to do to people. And people they don’t like you. Be friend with your team. There is nothing better than having good friend at work. And mean it, don’t fake it because people are smart. You’re going to spend over eight hours with these people. It’s hard to fake it. You fake it for one day. You fake it for two days. Mean it, when you say or do something, mean it for your employees, for your team. When you don’t achieve your goal, don’t start blaming the other people. The blame game has no end. Blame yourself for nit monitoring it and watching it on daily and hourly basis. Then figure out what the problem is. Try to help the team to move forward. It’s better to let somebody go than just blaming him and kill his confidence. Not everybody is the best fit in the same tea. We all watch some team sports. We see some stars that they’re stars but they can’t work in a specific team. It doesn’t mean that they are bad players. They just don’t have the chemistry to help the team to achieve their goals.
When you set a goal always have to measure and analyze the number. Be a number person. Do not assume things. Don’t wait to see the end results. If your goal is yearly, break it down into monthly. Break it down into weekly. Break it down into daily, even hourly. Monitor it hourly, monitor it daily.
If you don’t achieve your goal in the first day you can go back and make it up for the second day. But if you wait until a week it’s harder to achieve. If you wait until it’s a month, its way harder. If you are waiting until six months I can tell you, if you are going to make your goal, it’s almost impossible.
Set some KPI’s and checkpoints. Those are your red flags. For example, the ABC rating that you have, those are the ABC ratings that you are rating your students based on attendance. Those are some checkpoints for you. If your students are being graded before the end point which is quitting, you know that they have disengaged your services. So you are going to talk to them. You have to have to have the exact same thing for your goals.
In PerfectMIND, we have Dashboard, we have the 24hrs report. Don’t just delete the emails for the 24hr report. The 24hr report tells you exactly what you need to do for your business. It will tell you exactly what is lacking and what you need to work on and emphasize. Make a change if you have to. If you are not close to your goal don’t expect to achieve your goal if you don’t make a change. The change won’t happen if you don’t make a change. So always think outside of the box, always be open to be criticized. Always be open to get feedback and then make a change if you have to make a change.
Analyzing - If you are spending a lot of money in marketing, first of all, make sure where you are spending money is paying back. And make sure it’s scalable. Meaning, if I spent went dollars this month and I get one student, if I spend forty I get two. If I spend sixty I get three. You won’t be able to do that unless you are a number person. If you are not a number person, it’s okay. Find somebody to complete you in your team. Find a number person in your team. Let him come up with the numbers then you two can sit down and analyze things. Don’t push it if you are not a number person.
You have to stay organized and focused when you are setting up your goal. As a small bus business owner, you have one big problem and I’m pretty sure you all know what that is - distraction. There are so many distractions around you guys. From paying the bill, an employee calling in sick, somebody is quitting, students are not happy with the service. Beside all the personal problems that you have, you have to teach a class, this month you didn’t have a good business, who’s going to write the checks? Distraction is the big problem for you all. Always try to be focused and organized. How can you stay organized and focused?
Number one: you need to system devised. It’s impossible for you to stay organized with pen and paper. I can tell you right now. If you tell me that you know, I'm amazing with excel, I'm telling you it’s impossible. My background is engineering and business. It is impossible. I love numbers but numbers need to be ready when I need it. Numbers need to be changed when I want it to be changed. If I want to look at it monthly, weekly, in different angles… you need to have a process. If you want to test to see whether you have process or not, think of it this way. Can you take two weeks’ vacation without doing anything in your business and the business will be run as it is today? If you say no, you have no process, you have no business. Or ask the same question of any of your staff. If one of your staff quits and you don’t know, this person is loyal to me, he’s not going to leave. Its okay, but you need to have a process. What if something happens to him? If he breaks his leg and he has to be in the hospital for a month. But if you have a process, everything will move forward. People are a factor of that process.
Make your business as automated as much as you can from every angle. It doesn’t matter how accurate you are, there is always an error. When you have everything automated, everything is on time, everything will be done properly, less error, and you can count on that. You can count on automation. But you can’t count on people. Doesn’t matter how much you trust them, doesn’t matter how great they are, it’s awesome to have great people on your team.
But an automation process will make their job more efficient, more productive and easier. Always have a clear KPI and reporting for yourself and your staff. Don’t just talk based on, ‘So Johnny how many students we got?’ ‘I think five.’ Okay five is great. No, let’s run a report in our system. So we have five students. Can you talk more about those five? The KPI and the measurement have to be very clear.
You have to be task oriented. All the tasks have to be defined in order to achieve a specific goal. You have to break it down and assign each task. The task, they need to have reminder, they have to complete it. They have to accountable for those tasks. Never assume. Always talk based on fact. Assumption will kill you business. You must always have some facts to move forward.
I see a question that says ’What is KPI?’ I apologise that I didn’t see that question until now. It’s key Performance Indicators in your business. There has to be some indicators in your business so you can keep track of your performance. So KPI Stands for Key Performance Indicators.
I see a lot of questions coming. I will finish my webinar shortly and then we will have a question and answer at the end so we can be more focused.
Never give up. You won’t always achieve your goals. Michael Jordan is one of the people that I always read his quotes and I think it’s very motivational. When you look at somebody as a coach, when you look at somebody as person that you want to look up to, first make sure they know what’s going on. And make sure they have done it. There are so many consultants out there. They talk about business. The first question is what have you done? Is your experience practical or not? Do you own a school? How many students do you have? What was your pick? What are you good at? Just don’t listen to everybody. The example for coaching in business is very to the couples counseling. You go to couples counseling and you ask the counselor that you are going to… Some people don’t even have a successful relationship in their life. Don’t listen to them because they are based on theory. You need the people who have actually done it; tried it and you are not the person on whom they are going to test their ideas.
So never give up on your goals. Michael Jordan says; “I’ve missed more than nine thousand shots in my career. I’ve lost almost three hundred games. Twenty-six times I’ve been trusted to take the game winning shot and I missed it. I failed over and over and over again in my life and that’s why I succeeded.” If you fail, learn something, don’t give up, and set your next goal. If you would have achieved your goal every single time, those are not realistic goals, I'm telling you right now. The goal has to challenge you. You have to fight for it. You have to fail three times, celebrate the fourth time. Don’t give up. If you have a dream, go for it.
I was just talking to a gentleman about a week ago. He had just opened up his martial aku. He said he has five or eight students. He was thinking about the website, he was thinking about SEO he was thinking about a system. He didn’t have any place in a way. But he had one thing he had passion, he had willingness. That’s a factor that not everybody has it. Is he going through tough times to make his business? Of course will he succeed? If he keeps that attitude I have no doubt. Maybe he doesn’t succeed next month or the month after, but he has the passion, he has the willingness. In order to achieve something sometimes you have to sacrifice time, sacrifice your money, and sacrifice your fun in order to achieve something bigger.
Now thank you all for attending the webinar. That was the webinar about the goal setting. Feel free to connect with me on Linkedin. You can search my first name, last name or you can add me on Facebook.
My email is Vahid@PerfectMIND.com. Please also like Championsway and PerfectMIND Facebook pages. We do have some great webinars. We have some recordings. We have some eBooks. If you are a Championsway client we do post our training videos, our updates. Please make sure to stay connected with us. Also you can follow us on twitter as well. Now I’m all ears to answer your question. If you want to type your question and then we can start going over the question.