Setting and achieving goals is essential for any company, no matter its size or industry. While some companies may believe that they can function well without setting and tracking strategic goals, the truth is that this approach can lead to inefficiencies, missed opportunities, and a lack of direction. In this blog post, we will contrast the benefits of companies that track strategic goals with those that do not, using real-world examples to illustrate our points.
What are Strategic Goals?
Strategic goals are long-term objectives that a company sets to achieve its vision and mission. These goals help to align the company’s resources and focus its efforts to accomplish its most significant objectives. They also help to provide a clear direction for the company, as well as a framework for decision-making.
The Benefits of Tracking Strategic Goals
Tracking strategic goals has a range of benefits for a company. These include:
Increased Focus: Setting and tracking strategic goals provides a clear focus for the company’s activities. This focus allows the company to prioritize its resources, activities and initiatives towards achieving its most important objectives.
For example, Procter & Gamble (P&G), one of the world’s largest consumer goods companies, has set a strategic goal of reducing its environmental footprint. This goal has helped to focus the company’s efforts on sustainable practices, including reducing waste, conserving water and energy, and using renewable energy sources.
Better Decision Making: Tracking strategic goals provides a framework for decision-making. It allows a company to evaluate the potential impact of decisions on its long-term objectives and align them with its strategic goals.
A great example of this is Starbucks, which has set a strategic goal of being a “responsible company.” This goal has helped the company to make better decisions in areas such as ethical sourcing, community engagement, and environmental sustainability.
Improved Performance: Tracking strategic goals helps a company to monitor its progress towards achieving its objectives. This monitoring enables the company to identify areas where it needs to improve and take corrective action to improve its performance.
A company that has reaped the benefits of tracking strategic goals is Apple Inc. Its strategic goal of delivering innovative products has helped the company to maintain its market leadership position and achieve exceptional financial results.
Companies That Don’t Track Strategic Goals
In contrast, companies that do not track strategic goals are likely to experience a range of challenges. These challenges include:
Lack of Direction: Without strategic goals, a company may lack a clear direction. This lack of direction can lead to confusion, inefficiencies, and missed opportunities.
Poor Decision Making: Companies that do not track strategic goals are more likely to make poor decisions. These decisions may be based on short-term objectives or personal preferences, rather than on a clear understanding of the company’s long-term objectives.
Lack of Accountability: Companies that do not track strategic goals may struggle to hold their employees accountable. Without clear goals, it can be difficult to measure performance and provide feedback to employees.
One example of a company that has experienced these challenges is Kodak. In the early 2000s, Kodak failed to set and track strategic goals, leading to missed opportunities in the digital photography market. The company was unable to compete with rivals such as Canon and Nikon, who had set clear strategic goals and invested in digital technology.
Conclusion
In conclusion, setting and tracking strategic goals is essential for any company that wants to achieve long-term success. Companies that track strategic goals benefit from increased focus, better decision-making, and improved performance. In contrast, companies that do not track strategic goals are likely to experience a lack of direction, poor decision-making, and a lack of accountability. To achieve success in today’s fast-paced and competitive business environment, companies must set and track strategic goals that