Why is goal setting so important? It's important because it's the building block of effective management. Just about everything you do in your company has some goal attached to it, i.e., increasing sales, improving service, getting control of your finances, coaching an employee, completing a business expansion, etc. Without clearly defined goals you will waste significant money, time, and energy.

To understand the importance of goal setting to managers and supervisors, consider the following questions:

• Are there things your employees could improve upon, i.e., their skills or work habits?
• Are there things you could improve upon, i.e., your skills or work habits?
• Are you uncomfortable reprimanding employees and delivering negative feedback?
• Do you want your employees motivated to do the best job they can?
• Do you want to make more efficient use of your time at work?

Goal setting is such a simple concept that it's often overlooked as being a skill.  But how often does a business become paralyzed because employees lack clear goals and objectives? How often have you told a team member to do one thing only to be left scratching your head wondering how the employee failed to deliver on what you thought was an obvious request? Don't take it for granted!
  

It's critical that managers involve employees in setting their goals. Before setting a goal make sure that you and your team members agree on the responsibilities of the job and the associated priorities.  If you're using goal setting to improve individual performance, be sure the goal is challenging but realistic. No one is motivated by a goal that is too hard or easy to accomplish. Follow these guidelines when goal setting. 

Goal Setting 

• Involve the employee in goal setting--don't just set the goal(s) for him or her.
• Define the goal--be sure to make it clear what the team member is expected to accomplish.
• Make the goal challenging, but realistic--an unrealistic, unachievable goal is de-motivating.
• Agree on how the goal will be measured--how will you and the employee know when the goal has been reached?
• Document the goals--be sure to write the goals down so you and the team member have a record of them.  
• Provide support--make sure you provide the necessary support and resources. 

Once goals are set, team members want to know how they're doing in accomplishing those goals. Even though employees are constantly evaluating their own performance, they really can't make improvements unless their manager takes the time to point out how they are doing.