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The 5 Reasons You Should Set Big Goals

The 5 Reasons You Should Set Big Goals

It’s the end of the year, and the beginning of a new one. So it’s very common for people to turn their attention to setting new goals, and plans to improve their life this time of year. Personally, I advocate the “continual goal setting” method, so that whenever an old goal is completed, we have already started a series of new ones. However, if you are using the start of the new year as a measuring point to kickstart your life or business and make life more fulfilling, that is fantastic, and you’ve come to the right place.

In this article it’s my intention to make the case for “setting big goals”, and giving five specific reasons why setting big goals is worthwhile.

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Most of us are familiar with the S.M.A.R.T. method of goal setting. S.M.A.R.T. is an acronym used to remind us that goals should be specific, measurable, attainable, relevant and time bound. This method of goal setting is fantastic. I have used it many, many times to produce visible results in my life and business. I’m not suggesting that we should stop setting S.M.A.R.T. goals, I’m just going to make the case that life is really fun when, in addition to our S.M.A.R.T. goals we also throw in some “massive, huge, audacious, incredible” goals to go along with it.

Big goals are scary to many of us. They cut right to the “A” in the S.M.A.R.T. scheme, that is, we may think that we can’t attain them. We look at a big goal, and then we look back at ourselves, and where we are right now, and we think “what is the point of setting a goal like that, I can never attain it.”  The reality is that in many cases we don’t know what we are actually capable of achieving until we try.  We don’t know our limits until we actually test them.

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As a result, massive, crazy, wild goals can make our life more enjoyable and fulfilling. Here is why:

1. If We Allow Ourselves A Moment To Dream, We Get Really Excited

When we stop and think about what life would be like if we actually achieved the big goal, we get excited. The goal itself creates a gravitational pull that negates the need for willpower. The excitement of the possibility pushes us to take action. When we live every single day “under the influence” of a big dream, with a vision in our minds of the actuality of that dream, we are so busy moving towards the goal that we don’t have time to feel sorry for ourselves. Regardless of whether we actually achieve the big goal, our life becomes significantly enriched by this new mode of living. Over time, we transform into a new person, one who never feels sorry for themselves, or spends time in “what could have been” because we are so busy (and fulfilled) chasing what we believe is possible.

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2. They Cause Us To Make Long Term Improvements

Big goals cause us to expand our vision (to make room for the goal).  When we expand our vision we confront the reality that there are “structural changes” that must take place in our business or our life (depending on the nature of the goal) in order for the goal to come to fruition. That is, our current infrastructure or systems (in either our business or our life) are not equipped to support the big goal. Once we realize this we start making changes that will have significant positive long term benefits. We “strengthen the foundation” of our business or our life. This creates a ripple effect that spills over into other areas of our life in a positive way.

3. They Make Us Much More Resilient In The Short Term

When we look big, we know that every second counts. We have to give the very best that we have, every single day. We know that we can’t waste a moment in self-pity or meaningless time wasting activities. As a result, we start accounting for the “present moment” much more than we would when we are setting goals that don’t cause us to stretch. In our world of technology, distraction is a great danger. In order to achieve big goals we must be absolutely resilient and relentless in the short term.

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4. They Cause Us To “Get Real” With Ourselves And Confront Our Deficiencies

Big goals cause us to confront reality. If we start with the belief (or even the hope) that a big goal is actually attainable, we must then ask the next question: How could it happen? This question brings to light our relationship with reality.  We have to be honest with ourselves, and address either our poor habits and behaviors (if it is a personal goal) or our poor systems and processes (or lack thereof) if it is a business goal. It is so easy to blame others, never take personal responsibility, and make excuses. It is a courageous (and effective) person however who is willing to accept personal responsibility and take a deep look inward to address deficiencies rather than looking outside. When we set big goals we are forced to look inward first and make changes there.

5. They Cause Us To Develop Powerful Habits

In all of this what is happening is really a change of behavior.  This ultimately is the greatest benefit of setting big goals.  If we are really going after them (with all our heart) then we are forced to change our behavior.  We become much more positive people (point 1). We set up systems and processes that are valuable for the future (point 2), but we live completely in the present and make the most of our time (point 3).  Finally we become “real” with ourselves and look to change internally before we point the blame at others (point 4).  When we maintain all of these behaviors for a sustained period of time, what we are actually doing is something incredible – we are instituting powerful life changing habits.

At this point it doesn’t even matter whether we achieve the big goal or not.  We have achieved arguably a greater victory of having significantly improved ourselves.  This is the ultimate ancillary benefit of setting big goals.  They help us to build, and improve ourselves, dramatically, and it is done through a sustainable change.  It is done through the power of habit.

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Ryan Clements

A lawyer turned marketing professional, entrepreneur and writer who writes about entrepreneurship, career and personal development.

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Last Updated on January 6, 2021

14 Ideas on How to Measure Productivity to Make Progress

14 Ideas on How to Measure Productivity to Make Progress

Everyone has heard the term productivity, and people talk about it in terms of how high it is and how to improve it. But fewer know how to measure productivity, or even what exactly we are talking about when using the term “productivity.”

In its simplest form, the productivity formula looks like this: Output ÷ Input = Productivity.

For example, you have two salespeople each making 10 calls to customers per week. The first one averages 2 sales per week and the second one averages 3 sales per week. By plugging in the numbers we get the following productivity levels for each sales person.

For salesperson one, the output is 2 sales and the input is 10 sales: 2 ÷ 10 = .2 or 20% productivity. For salesperson two, the output is 3 sales and the input is 10 sales: 3 ÷ 10 = .3 or 30% productivity.

Knowing how to measure and interpret productivity is an invaluable asset for any manager or business owner in today’s world. As an example, in the above scenario, salesperson #1 is clearly not doing as well as salesperson #2.

Knowing this information we can now better determine what course of action to take with salesperson #1.

Some possible outcomes might be to require more in-house training for that salesperson, or to have them accompany the more productive salesperson to learn a better technique. It might be that salesperson #1 just isn’t suited for sales and would do a better job in a different position.

How to Measure Productivity With Management Techniques

Knowing how to measure productivity allows you to fine tune your business by minimizing costs and maximizing profits:

1. Identify Long and Short-Term Goals

Having a good understanding of what you (or your company’s) goals are is key to measuring productivity.

For example, if your company’s goal is to maximize market share, you’ll want to measure your team’s productivity by their ability to acquire new customers, not necessarily on actual sales made.

2. Break Down Goals Into Smaller Weekly Objectives

Your long-term goal might be to get 1,000 new customers in a year. That’s going to be 20 new customers per week. If you have 5 people on your team, then each one needs to bring in 4 new customers per week.

Now that you’ve broken it down, you can track each person’s productivity week-by-week just by plugging in the numbers:

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Productivity = number of new customers ÷ number of sales calls made

3. Create a System

Have you ever noticed that whenever you walk into a McDonald’s, the French fry machine is always to your left? 

This is because McDonald’s created a system. They have determined that the most efficient way to set up a kitchen is to always have the French fry machine on the left when you walk in.

You can do the same thing and just adapt it to your business.

Let’s say that you know that your most productive salespeople are making the most sales between the hours of 3 and 7 pm. If the other salespeople are working from 9 am to 4 pm, you can potentially increase productivity through something as simple as adjusting the workday.

Knowing how to measure productivity allows you to set up, monitor, and fine tune systems to maximize output.

4. Evaluate, Evaluate, Evaluate!

We’ve already touched on using these productivity numbers to evaluate and monitor your employees, but don’t forget to evaluate yourself using these same measurements.

If you have set up a system to track and measure employees’ performance, but you’re still not meeting goals, it may be time to look at your management style. After all, your management is a big part of the input side of our equation.

Are you more of a carrot or a stick type of manager? Maybe you can try being more of the opposite type to see if that changes productivity. Are you managing your employees as a group? Perhaps taking a more one-on-one approach would be a better way to utilize each individual’s strengths and weaknesses.

Just remember that you and your management style contribute directly to your employees’ productivity.

5. Use a Ratings Scale

Having clear and concise objectives for individual employees is a crucial part of any attempt to increase workplace productivity. Once you have set the goals or objectives, it’s important that your employees are given regular feedback regarding their progress.

Using a ratings scale is a good way to provide a standardized visual representation of progress. Using a scale of 1-5 or 1-10 is a good way to give clear and concise feedback on an individual basis.

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It’s also a good way to track long-term progress and growth in areas that need improvement.

6. Hire “Mystery Shoppers”

This is especially helpful in retail operations where customer service is critical. A mystery shopper can give feedback based on what a typical customer is likely to experience.

You can hire your own shopper, or there are firms that will provide them for you. No matter which route you choose, it’s important that the mystery shoppers have a standardized checklist for their evaluation.

You can request evaluations for your employees friendliness, how long it took to greet the shopper, employees’ knowledge of the products or services, and just about anything else that’s important to a retail operation.

7. Offer Feedback Forms

Using a feedback form is a great way to get direct input from existing customers. There are just a couple of things to keep in mind when using feedback forms.

First, keep the form short, 2-3 questions max with a space for any additional comments. Asking people to fill out a long form with lots of questions will significantly reduce the amount of information you receive.

Secondly, be aware that customers are much more likely to submit feedback forms when they are unhappy or have a complaint than when they are satisfied.

You can offset this tendency by asking everyone to take the survey at the end of their interaction. This will increase compliance and give you a broader range of customer experiences, which will help as you’re learning how to measure productivity.

8. Track Cost Effectiveness

This is a great metric to have, especially if your employees have some discretion over their budgets. You can track how much each person spends and how they spend it against their productivity.

Again, this one is easy to plug into the equation: Productivity = amount of money brought in ÷ amount of money spent.

Having this information is very useful in forecasting expenses and estimating budgets.

9. Use Self-Evaluations

Asking your staff to do self evaluations can be a win-win for everyone. Studies have shown that when employees feel that they are involved and their input is taken seriously, morale improves. And as we all know, high employee morale translates into higher productivity.

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Using self-evaluations is also a good way to make sure that the employees and employers goals are in alignment.

10. Monitor Time Management

This is the number one killer of productivity in the workplace. Time spent browsing the internet, playing games, checking email, and making personal calls all contribute to lower productivity[1].

Time Management Tips to Improve Productivity

    The trick is to limit these activities without becoming overbearing and affecting morale. Studies have shown that most people will adhere to rules that they feel are fair and applied to everyone equally.

    While ideally, we may think that none of these activities should be done on company time, employees will almost certainly have a different opinion. From a productivity standpoint, it is best to have policies and rules that are seen as fair to both sides as you’re learning how to measure productivity.

    11. Analyze New Customer Acquisition

    We’ve all heard the phrase that “It’s more expensive to get a new customer than it is to keep an existing one.” And while that is very true, in order for your business to keep growing, you will need to continually add new customers.

    Knowing how to measure productivity via new customer acquisition will make sure that your marketing dollars are being spent in the most efficient way possible. This is another metric that’s easy to plug into the formula: Productivity = number of new customers ÷ amount of money spent to acquire those customers.

    For example, if you run any kind of advertising campaign, you can compare results and base your future spending accordingly.

    Let’s say that your total advertising budget is $3,000. You put $2,000 into television ads, $700 into radio ads, and $300 into print ads. When you track the results, you find that your television ad produced 50 new customers, your radio ad produced 15 new customers, and your print ad produced 9 new customers.

    Let’s plug those numbers into our equation. Television produced 50 new customers at a cost of $2,000 (50 ÷ 2000 = .025, or a productivity rate of 2.5%). The radio ads produced 15 new customers and cost $700 (15 ÷ 700 = .022, or a 2.2% productivity rate). Print ads brought in 9 new customers and cost $300 (9 ÷ 300 = .03, or a 3% return on productivity).

    From this analysis, it is clear that you would be getting the biggest bang for your advertising dollar using print ads.

    12. Utilize Peer Feedback

    This is especially useful when people who work in teams or groups. While self-assessments can be very useful, the average person is notoriously bad at assessing their own abilities.

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    Just ask a room full of people how many consider themselves to be an above average driver and you’ll see 70% of the hands go up[2]! Now we clearly know that in reality about 25% of drivers are below average, 25% are above average, and 50% are average.

    Are all these people lying? No, they just don’t have an accurate assessment of their own abilities.

    It’s the same in the workplace. Using peer feedback will often provide a more accurate assessment of a person’s ability than a self-assessment would.

    13. Encourage Innovation and Don’t Penalize Failure

    When it comes to productivity, encouraging employee input and adopting their ideas can be a great way to boost productivity. Just make sure that any changes you adopt translate into higher productivity.

    Let’s say that someone comes to you requesting an entertainment budget so that they can take potential customers golfing or out to dinner. By utilizing simple productivity metrics, you can easily produce a cost benefit analysis and either expand the program to the rest of the sales team, or terminate it completely.

    Either way, you have gained valuable knowledge and boosted morale by including employees in the decision-making process.

    14. Use an External Evaluator

    Using an external evaluator is the pinnacle of objective evaluations. Firms that provide professional evaluations use highly trained personnel that even specialize in specific industries.

    They will design a complete analysis of your business’ productivity level. In their final report, they will offer suggestions and recommendations on how to improve productivity.

    While the benefits of a professional evaluation are many, their costs make them prohibitive for most businesses.

    Final Thoughts

    These are just a few of the things you can do when learning how to measure productivity. Some may work for your particular situation, and some may not.

    The most important thing to remember when deciding how to track productivity is to choose a method consistent with your goals. Once you’ve decided on that, it’s just a matter of continuously monitoring your progress, making minor adjustments, and analyzing the results of those adjustments.

    The business world is changing fast, and having the right tools to track and monitor your productivity can give you the edge over your competition.

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    Featured photo credit: William Iven via unsplash.com

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