Most organizations make financial commitments. These can be in the form of revenue, profits, expenses, and budgets. Your goals need to add up to these financial expectations. When people have non-financial goals, they still need to know how their results contribute to the broader financial performance of the organization. Your job is to make those connections clear and easy to understand.
- Most organizations make financial commitments.…These can be in the form of revenue, expenses,…profits and budgets.…Your goals need to add up to these financial expectations.…When people have non-financial goals…or non-financial roles, they still need to know…how their results contribute to the broader…financial performance of the organization.…You job as their leader is to make those connections…clear and easy to understand.…I know one retailer that had an overall revenue…and profit target.…
Their store managers knew what their revenue number was.…They knew what their budget was.…They also knew at the store level,…what their expected profit was.…People who were non-revenue knew that their budgets…had to stay on track, because if they went over budget,…they knew how it impacted overall profit.…The marketers knew they had to hit their budget,…but also knew their marketing campaigns drove sales,…in stores and online.…They knew those campaigns had to hit their goals…because again, they understood the link…between their campaign and revenue and profit.…
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- Set corporate and business unit goals.
- Define driver metrics.
- Explain the concept of supporting goals.
- Identify benefits of tying goals to strategy and incentives.
- List ways to troubleshoot and communicate goals.
- Describe how to hold others accountable and avoid pitfalls.