Developing Measurable Strategic Goals
A governing board is responsible for the organization’s strategic planning process, including measurable strategic goals. Great goals are SMART goals. They are specific, measurable, achievable, reach requiring, and time-bound. Three common reasons that boards don’t develop measurable strategic goals are that the task requires hard mental work, board members often don’t know what to measure, and the board isn’t sure what level of achievement is reasonable.
There are three main solutions to these goal-setting obstacles. In effective organizations, board members step up to the plate. They devote adequate time to the organization, put on their thinking hat, and participate in professional development to develop the necessary skills. Another helpful strategy for boards that don’t have goal-setting experience is to engage a governance or planning consultant who can facilitate their goal-setting meetings and provide example goals that the board can customize for the organization.
The third and essential solution is to set the SMART goals in concert with the senior staff person. As the operational leader she knows what is likely feasible. Sometimes boards set performance levels that are already being achieved or that require doubling results in one year without using additional resources. The CEO can suggest more appropriate targets for the board’s consideration. The board and CEO then discuss the merits of each option and come to agreement on the final goal. The CEO can also shed light on the practicality of the proposed measurement. Measuring the increase in community awareness of the organization’s products might cost 10% of a small company’s tight budget, and thus not be a wise use of resources. The CEO might suggest that the increase in the number of sales is a more feasible way of measuring the same intent.
An organization’s strategic goals need to be SMART and to be supported by both the board and the CEO. Only if the direction-setting board and the leader of day-to-day operations are on the same page will the organization achieve its goals and serve its mission well.
