Imagine setting out to achieve your lifelong dream but without a plan. You have your eyes set on the goal but all you see is dark leading you to no clear path on how to get to your destination. Frustrating! Right? Well, having a clear goal is only one part of the job but the process decides which way the outcome is going to go. Therefore, spending time and expertise to layout the steps that lead to the goal achievement is essential for its success. The goal needs to be assessed in order for it to be SMART (Specific, Measurable, Attainable, Relevant & Time-bound.) so thatthe critical success factors (CSF) and key performance indicators (KPI) are added to the goals.
The two key factors that determine the successful accomplishment of goals is motivation and consistency. They may not seem challenging on the face of it but they can be extremely hard to achieve and sustain. Once you’ve gained clarity in “what” you wish to achieve, the next phase focuses on the question “how” it needs to be achieved in the best possible way. It is always recommended to break it down for better clarity and understanding. Research shows that putting one’s goals in writing transforms a wishful thinking into a concrete plan. It will become a constant reminder of how seriously you want to achieve your goal you want to achieve your goal and why you wanted it in the first place. Having an action plan is as important as having a goal as KPIs and CSFs are finely knitted with the end goals but they measure the effectiveness of the actions. Incorporating contingency plans to mitigate the chances of failure is an important step that most businesses overlook. Smart decisions breed from a combination of reliable information and risk-mitigation techniques in place to provide a safety net.
CSFs focuses on the causes whereas KPIs emphasis on the effects and both are derived from the company’s strategic goals. Identifying the CSFsin advance gives a greater clarity on what needs to be done to achieve the goals and KPI gives clarity on how we are doing it and if we need to improve. The results are incorporated in the action plans which makes achieving goals in a business a continues task. KPIs are put in place to measure the expected against the actual results. An integration of these two in the organization’s strategic goalsensures smooth running with consistency As it is said in business management ‘what gets measured, gets done!’ therefore, integrating the right tools to extract the results that the company actually needs to measure is the real challenge. At Ali Syed CPA we can help you in identifying and measuring the KPIs.
