About the goals pyramid

We all know that one of the keys to business success is the ability to set clear and co-ordinated goals. Despite this many people in SMBs and elsewhere struggle with the practical application of goal setting principles.

Here are some ideas that may help you -

The Goals Pyramid

Picture a pyramid on top of which rests a single large stone block. This large stone block represents your business’s Primary Goal. Every business must have a clear Primary Goal. This goal can be set by answering a question like “If we achieve nothing else this year, what is the one thing we must achieve?” This may not be an easy question to answer, since it is likely to be linked to stakeholder relationships and the viability or longevity of the business, however you must give it the deep consideration it deserves.

The layer of large blocks immediately below the top block on the pyramid represents a layer of Second-level Goals. These are the goals whose achievement will ensure the achievement of the Primary Goal. These Second-level Goals also need to be identified and set with great care. Depending on the substance of the Second-level Goals it may be necessary to set a series of supporting Third-level Goals, and so on.

By using the Pyramid structure you can ensure that the goal setting for all of your business functions, including your sales and marketing, is aimed at supporting the achievement of the Primary Goal.

Results goals and Activity goals

A Results goal is simply that; an expression of an end-result to be achieved, for example “Gross Sales of $x in the 2004/2005 Financial Year”. An Activity goal is an expression of activity-units to be achieved, for example “New Prospect sales calls of y in the 2004/2005 Financial Year”. People cannot do Results but they can do Activities. That is why it is vital for you, when setting Results Goals, to connect them to Activity Goals to support their achievement. Without this connection your goal setting is little more than wishful thinking.

Tangible and Intangible goals

Not all your goals need to be Tangible. Albert Einstein is reported to have said “Not everything that counts can be counted and not everything that can be counted counts”. With that thought in mind you should feel comfortable in setting Intangible goals and including them in your Pyramid if that’s appropriate to your business.

Examples of Intangible goals are “For Our Business Inc to be seen as a valuable member of the local business community” and “To maintain a happy and motivating work environment”. Both goals are worth striving for – however any assessment of success in achieving them could only be based on opinion.

Developing Action Plans from your Goals Pyramid

Goals are about “what the business is going to achieve”; Action Plans are about the “how, in what sequence and by whom”. Every goal in the Pyramid needs to be linked to an Action Plan that sets out action steps to be taken, a ‘do by’ date for each step and the name of the individual responsible for that step. A word of warning; never make a group responsible for an action step because responsibility will slip through the cracks – instead nominate a group leader, give them the necessary authority, and make that person responsible.

Obviously, Action Plans must be recorded in writing so that proper accountability can be maintained and progress can be monitored.

Don’t be fazed by obstacles

It is unlikely that you will progress to the achievement of your goals without meeting obstacles along the way – if it were to be that easy you would have achieved your goals already!

Take time to identify any pre-existing obstacles and include the steps for dealing with them in your plans. When you meet unexpected obstacles along the way don’t panic and don’t give up. Simply amend your plans to deal with the obstacles and get on with it.

Keep your plans alive

Don’t file them away to gather dust all year. A plan is meant to be a support not a straitjacket. Review progress regularly. If a part of your plan goes awry you may decide to dump that part. If an unexpected opportunity arises be flexible - amend your plans so you can capitalise on it.


(The up-coming post for Wednesday 25/3 is Who does the coaching? It's about taking responsibility for this important function in a sales group.)