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Aligning both your employees’ goals with your company goals means more productivity and profitability for your business.  Being one of your biggest expenses and at the same time your biggest asset, it benefits your company to utilize your employees’ full potentials.

Small and mid-sized businesses need to become smarter and more productive than larger companies, in order to survive in today’s business world.  In order to stay competitive without the financial advantages and physical infrastructure of larger companies, your business needs to become wiser and more cohesive.

Companies that set and closely tie in their company goals with the employees’ goals have seen dramatic increases in business performance.

“A mere 7% of employees today fully understand their company’s business strategies and what’s expected of them in order to help achieve company Goals.” Robert S. Kaplan and David P. Norton, “The strategy-Focused Organization,” Harvard Business School Press, 2001

Facts of Business Goal Alignment

Companies that align employees’ goals with their own company goals find they financially benefit.  Employees of businesses that perform the weakest did not clearly understand their company goals and objectives or how their individual efforts fit in to the overall scheme.  These unfocused individuals were not able to perform to their full potential.  Employees must feel fairly compensated and satisfied with their position in order to give their best efforts.

Recent studies have shown that setting goals increases performance levels. And coordinating goals between individual and departments is a must for any organization that wishes to see ongoing success. Those studies also showed that the most productive employees were those who understood the link between their efforts and company goals. And so it is important to insure that employees clearly understand how their jobs and actions relate to company goals, both long and short term.

Employee who realize that they can make a difference in and achieving both their individual goals and contributing to the overall goals of the company will be more productive and that productivity will lead to greater cost effectiveness and higher profits.

In order to achieve this cost effectiveness it is important to insure transparency in the different levels of command. Secrecy and operating on need to know or “Yours is not to reason why” type system creates the impression in the mind of employees that they are disposable entities and of no real importance to the company. This has a direct and destructive effect on morale.

The interlocking of goals of goals at different levels and across different departments also creates accountability as employees will hold each other’s feet to the fire to insure the achievement of their particular goals. This increases the level of communication between employees and minimizes the need for executive control and discipline.

The interlocking of goals also increases efficiency without the need for complex management. This enables the effective assignment of labor and reduces duplication of effort and actions.

Strong goal alignment also enables management to easily understand the requirements and responsibilities of specific goals while eliminating redundancy and enabling them to focus their various staffs on the most important activities.