Key Takeaways
- Many leaders struggle with goal setting in uncertain times, revealing insights into how companies operate.
- A proven leadership mindset can build focus, alignment, and momentum as businesses plan for the year ahead.
Setting annual goals should feel as automatic as flipping the calendar to a new year. Yet, it’s surprisingly common to find CEOs who forgo this crucial step. Without a clear roadmap—what goals provide—progress remains elusive. How can leaders expect to encounter meaningful milestones without a well-defined destination?
The Challenge of Goal Setting
Leaders who shun goal setting often fall into two categories: those lacking a clear process and those paralyzed by economic uncertainty. Remarkably, tough times can underscore the significance of direction, making it all the more vital to have a reliable roadmap. It’s during turbulent waters that one truly relies on the map, not when the conditions are calm.
Understanding Goal Setting Fundamentals
Goal setting is a dynamic process. Even the most robust strategies require periodic adjustments, as navigating the business landscape is not a perfect science. At our company, we maintain both a one-year and a three-year plan, revisiting them midway through each year to evaluate what’s effective and what needs alteration. Each plan focuses on no more than three primary goals. If you have fewer than three, you risk lacking focus; if you have more, you risk creating a cluttered to-do list.
The goals must be challenging yet specific and measurable. For instance, “double our revenue” is a clear goal, while “increase revenue” lacks precision. We aim for what we dub BHAGs—Big, Hairy, Audacious Goals. Though a company may not hit the ambitious target of 100 new locations, growing from five to 50 is still considerable progress. Playing it safe may provide a faҫade of success but often stifles genuine growth.
Involving the Entire Organization
Inclusivity is key in the goal-setting process. After four decades in various markets, we still survey team members across all our franchise brands to gather input and vote on essential priorities. Engagement fosters ownership—the more involved team members feel, the more motivated they are to contribute.
Moreover, success can look different for various brands. A well-established signage franchise may prioritize boosting average unit volume, while a newer franchise might have unique benchmarks to target. The crucial element is ensuring alignment around goals that genuinely reflect the present state of the business.
Measuring Progress Effectively
Merely setting goals doesn’t suffice. Measurement is fundamental to understanding progress. I refer to these as lead measures—specific actions that drive results. Each goal should have two or three lead measures attached to it.
For example, if the objective is to double revenue, what specific sales activities should be performed daily or weekly to achieve that? Or, if rolling out a new product each quarter is the aim, what milestones need to be met along the way? Big outcomes are often the result of consistent, repeatable actions.
The Path to Real Progress
Winning in business is less about obsessing over end-of-year figures and more about executing the right daily tasks. Just as a basketball team wins one basket at a time, companies grow through small actions—one call, one meeting, and one decision at a time.
After four decades, my optimism for the future has only intensified. Clear, actionable goals have not only prepared us to finish 2025 strongly but also laid the groundwork for an even more promising 2026. This confidence stems from discipline, clarity, and a roadmap illustrating our intended journey.
