For a group to achieve a goal, three things have to happen. Goals must be formulated effectively according to sound goal-setting principles. Goals must be effectively communicated to every team member. Finally, team members must feel that they "own" these goals.
Mission Statement
A mission statement is a short statement of an organization's ultimate purpose and reason for existence, according to business management consultant Birge D. Reichard. A mission statement should be a single paragraph. It should be stated broadly enough that all organizational strategies, plans and goals can be related to the furtherance of the mission, but narrowly enough to express a clear meaning to every member of the organization. An example of a mission statement is "To become the number one health food retailer in Owensboro by selling the highest quality health foods with 95% customer satisfaction."
Vision Statement
A vision is an ideal image of the future state of the organization, according to Reichard. Vision statements describe how the organization will achieve its mission in accordance with organizational values. An example of a vision statement would be "We help the families of Owensboro live happier and healthier lives by providing the healthiest, tastiest and most nutritious health foods, and by providing them with relevant information from knowledgeable sales staff." Strategic plans and performance goals should all be formulated in accordance with the values set forth in the vision statement.
Strategic Plan
A strategic plan sets general objectives, such as "to dominate the local health food market in the age 26-44 demographic group." Although strategic plans are typically long-term, medium-term and short-term strategic plans may also be formulated. Strategic plans help mid-level and lower-level management create operational goals for their department, and help rank-and-file employees relate their day-to-day activities to the general direction of the organization. In large organizations, strategic plans are usually formulated by top executives. The smaller the organization, the greater the involvement of rank-and-file employees can be.
Performance Goals
Two types of performance goals are organizational goals and individual goals. In all but the smallest organizations, departmental and divisional goals are also used.
Performance goals should support the organization's strategic plan. It is at the performance goal level that the participation and input of rank-and-file employees is most important. If employees are left out of the formulation of performance goals, they may not understand them and may not be motivated to achieve them.
Set performance goals by getting the input of employees. After general ideas have been developed, employees should identify priorities and create specific, step-by-step action plans. When forming individual employee goals, each employee should work with a supervisor and members of his team to allocate responsibilities in accordance with each employee's strengths and weaknesses.
Function
Goal-setting helps members of the organization understand the values and ultimate purposes of the organization so that goals are consistent. It allows members of different departments to communicate with each other and coordinate their efforts. Finally, multi-level goal-setting allows each employee to feel part of the process, to offer his own insights, and to internalize organizational goals as his personal goals.
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