Leadership

Setting business goals is more important than you think

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The Importance of Business Goals: Why a Company Stands Still Without a Clear Direction

What will work in a complex client environment? This is the question facing everyone whom an organization calls upon for help in a market crisis. The answer always begins in the same place: with the goal.

Most often, the impulse to act comes when expected financial results are missing. The rallying cry in boardrooms becomes one recurring sentence: “There are no sales, and we couldn’t move the needle ourselves. Replacing the sales director accomplished nothing. We are cutting costs, but the company’s bottom line still doesn’t add up. Yet for years things were so good. We have to change something in sales itself.”

And that is the ultimate point we are all chasing—the result. Regardless of our business starting package, subconsciously we want to be attractive, wealthy, young, and happy. We want to always know the right answer and never make mistakes. Except that for every leader and every organization, this means something completely different. We differ in our definitions of success, and when we finally experience it, only then do we realize whether that was truly what we were after.

It is no coincidence that experienced professionals first show the goal and agenda, and only later summarize a workshop, conference, or progress at work. “Both the reference point and the destination we want to reach are important.” Only then can we rationally evaluate the importance of business goals, choose the right path, and ultimately evaluate and appreciate the final outcome of the entire process.


How Can You Choose a Path If You Don’t Know Where You Are Headed?

If your goal as an entrepreneur sounds like “I want to increase profits and be successful,” I am sorry to say, but that is merely a vague dream, not a real business goal. What exactly does “wealthy” mean? At what account balance will you reach that state? What specific metrics define your success?

It is exactly the same with company results you plan to improve. To start acting and responsibly set a direction, you must first precisely answer a few fundamental questions:

  • Where exactly are you today as an organization, and what numbers are you playing for?
  • In what time horizon do you want to achieve this change?
  • What exactly are you playing for in sales—margin, absolute net result, or market share? *(On a side note: I wrote more extensively about whether your strategy is playing for profit or merely trying to avoid loss in my LinkedIn case study)*.
  • In which specific product or service does your greatest, actual potential lie?

This is the moment when deep managerial digging begins. Only reaching concrete, measurable indicators turns a vague statement into a real business goal that provides a starting point for further action. It forces you to dive deep beneath the surface of declarations and requires full mental commitment from decision-makers.

No. In a complex business environment, simply finding an expert to temporarily “help with something” is not enough.

An expert must thoroughly understand what the client wants most. We know the ultimate desires are great results and peace of mind. However, that is not a business goal. Before that can happen, the leader must clarify their intentions. Often, it is an external consultant who helps define those goals properly and helps the organization realize what is truly at stake.

Only with that clarity, knowing where we are headed, can we safely and responsibly move on to the next stage: diagnosing the starting point, or the initial baseline audit.


A Diagnosis Only Makes Sense When Tied to a Goal

Setting direction should not be done purely on intuition—at least not in a mature organization. Everything we do during an initial audit is done in direct reference to our assumptions. We examine the impact that individual, small pieces of the operational puzzle have on the ultimate, defined business goal.

In most cases, the diagnostic process naturally begins with a sales audit. We analyze the entire customer journey and evaluate the current state. Here, it quickly becomes apparent that low sales results are rarely an isolated issue confined solely to the sales team.

A thorough diagnosis very often reveals that weak sales are the byproduct of many small oversights across the company and a few truly serious systemic problems. Among them, management debt and skill gaps among middle managers—who fail to onboard their people properly and direct them toward executing tasks—most frequently take center stage.

A proper diagnosis forms the foundation for recommendations and concrete action scenarios. However, it is always honest, in-depth, and sometimes painful feedback for the executive team. It gives the decision-maker a complete picture of the situation so they can make an informed choice on what to do next. That choice might be to redefine what is critical for the company in a mature way.


A Moment of Truth for the Decision-Maker

Facing reality and realizing the importance of business goals is a true moment of truth where it is simultaneously easiest and hardest for the decision-maker:

  • Easiest—because they likely have never before in their company’s history possessed such a vast and reliable volume of hard data for decision-making.
  • Hardest—because the phase of observing actions “through the glass” comes to an end. Until now, the diagnosis was underway, external advisors ruled the hallways, and there was a comfortable sense of busyness and the illusion that “at least something is finally being done about those sluggish sales.”

Now comes the time for the crucial step. A firm decision must be made regarding personal and organizational commitment, budget investment, and conducting genuinely difficult conversations within the company. Or… honestly admitting to oneself that the organization is not ready for this change.

Recommended solutions and pathways to reach them mean entering a co-responsibility model for results. An expert can offer effective help and, depending on arrangements, might even take responsibility for a given operational project. However, that never relieves decision-makers of shared accountability for setting strategic direction and for the costs involved in systemic change management in a company. The starting point always remains the baseline: a clearly defined business goal.


An Engaged Leader: Responsibility for Direction

You can only evaluate and appreciate the final outcome of a transformation if you can precisely compare it with the starting point and the result envisioned at the beginning. In a complex business environment, only a determined and engaged leader stands a real chance of success.

An engaged decision-maker is a partner who avoids avoidance. They are focused on jointly seeking the best solution rather than passively expecting a ready-made result from the outside. They want to look at the company through fresh eyes, even if the truth about the starting point is uncomfortable.

If a leader learns how to treat business goals strategically and how to properly build accountability within structures (as I wrote regarding what delegating responsibility effectively in a team should look like), they automatically become a far more effective leader. Paradoxically, this new managerial competency is often more valuable to the company than the immediate financial result itself.

If someone claims an external expert immediately knows everything about your company over the first coffee, a red flag should go off. I often hear executives say: “You know, my company is specific.” And it’s true—every organization operates under unique conditions. Therefore, expecting someone from the outside to have ready answers to every question before stepping into the organization—and to understand your business goals better than you do—would be completely illogical.

An expert knows how to search effectively, what tools to use, and how to draw conclusions from the data the organization allows them to dig into. However, without constant calibration against the company’s internal knowledge and close collaboration with decision-makers, no corrective process will move in the right direction. Let us ensure that goals are set in an atmosphere of partnership—because only then will the achieved results remain in the organization for years to come.