Growth goals

To perform effectively, and even just to determine if its performance is effective, a company must define which targets it wants to hit, its growth goals. These goals however should not be limited to one level of activity or one key metric (i.e. profits) but should instead have different levels of targets.

In ‘Building A Growth Factory’ the author provides us with various example of different goal levels:


 * 1) Simon Sinek How great leaders inspire actionll company performance targets that define the short/ long term revenue and profit goals.
 * 2) Different targets for different kinds of growth, that is to say different targets for the various sources of growth.    This helps the company plan how much each source will and should contribute to the overall target.
 * 3) Operational targets which are determined for different business segments (market segments, demographics, geography etc…)
 * 4) Strategic opportunities which are both important problems to solve and opportunities for game changing moves.

Determining which type of targets it wants to achieve allows a business to make better resource allocation decisions and identify the capability gaps that need to be fixed. Furthermore, it sheds light on which strategic choices not to take. When setting goals managers should also make sure they are not overly vague and open to interpretation, and that they remain aligned throughout the company.