How to Foster Growth with Goal-Oriented Actions

Here’s how I do yearly planning for our business. We grew 88% last year, 35% the year before, 182% three years ago… So this strategy has proven to work for us: 1) Define your Goal. I loosely use the S.M.A.R.T. framework to define my goal — especially focusing on a clear numeric goal. Clarity and objectivity in your goal setting gives you ALIGNMENT with your team. If your goal is just “growth”, everyone thinks of growth subjectively and your team will be confused on what actions to take to get there. Define what success actually means. 2) Pick secondary Metrics. What levers impact your goal? If you have a lagging indicator as your goal (like revenue or customers), it’s especially useful to track leading indicators as your secondary Metrics. For example, with our goal of new customers, a leading top of funnel (ToFU) metric I track is signups. A middle of funnel metric I track are key product usage levers like how many people take certain actions. I track 1-6 leading Metrics that help me identify strong and weak levers towards our goal. 3) List Outcomes towards the goal. Start simple by focusing on a handful of outcomes for January or Q1. I like the saying “it’s not magic, it’s math”. Don’t hope for your goal to happen magically. Back into your number using math. For our team in 2024, the goal is number of customers. We define Outcomes as strategies or actions that help us accomplish the number of new customers. For example, in January we’re planning a Product Hunt launch, some targeted emails, affiliate opportunities, and a lot of continuation of successful 2023 actions. Many early-stage businesses I know in the $100,000 to $2 million range get overwhelmed because there are so many things they can do. Instead, focus on SIMPLICITY and the right actions by defining your goal, metric, and outcomes. It makes things a lot easier.

Every business is focused on growth until you look under the hood.  Analysis of 250+ startups indicates most hours per week aren't tied to growth. Fun fact: Zero teams I’ve analyzed in 2023 have audited their growth team’s time in the last quarter. This is true even for cross-functional teams that are dedicated to growth. My assumption is that they have never audited their time for growth impact. Its an even lower probability a weekly evaluation of everyone’s time is tied to growth in a forward looking and measurable way. If we truly want growth, then why isn’t this a standard procedure? Our process for our clients and training programs with growth stage startups incorporates this activity as at least once. Here are some of the strategies we use to help a team accelerate growth: 1 - We ensure clear and calculated 12-month growth goals. I’m shocked going into most strategy calls. My first question is always “what are your 12-month growth goals?”   It’s seldom an exec gives me a clear, concise, and specific number for growth rate. All execs and senior stakeholders need to be aligned on this. It needs to be communicated effectively for clarity and buy in throughout the business. 2 - We pinpoint 90-day KPIs. This may seem simple, but it’s more nuanced than you think. It’s not possible to fix everything at once. You need to focus your time, energy, and execution. It’s necessary to get traction against KPIs within a quarter. If you try to do everything at once it turns into a mess that becomes frustrating. It degrades buy in and confidence in the process. A much better approach is to focus on 1-2 primary KPIs to show measurable results.   The iterative nature of experimentation allows you to gain insights and improve performance over ~15 tests. You may not solve all your issues, but you will make progress. 3 - We create 90-day growth plans. This includes all growth initiatives for the next quarter. We break this into weekly sprint cycles for 12 weeks.   There is a visual project plan showing the weekly deliverables.   We have one hour weekly sprint calls.   In sprint calls, we visually look at the 90 day growth plan to check in. This is critical for success as a much needed form of accountability.   It also serves as data points to isolate dozens of preventable roadblocks: If we missed a deadline, why? Do you have communication issues that are breaking progress or slowing things down?   Are you lacking documentation that helps provide structure?   Are you lacking skills and need training or a new team member? Is the process suboptimal and needs diagnosis to make it more efficient? Growth isn’t about adding some new ad channels.   It’s not about strategy. It’s not about research and experimentation.   Growth is building the right team and processes to scale over time.   Focus on that and you will accelerate your growth rate faster than expected. #growth #startups #experimentation

Thursday was “senior night” for my son’s varsity baseball team. He has big goals to play at the next level. I did not play baseball past Little League, so I’ve never been able to offer much advice on hitting and fielding techniques. However; I’ve driven my family crazy by how I constantly apply business goal setting to sports. I still think they don’t believe me - but I am beginning to break through. 😁 In both business and baseball, a clear understanding of individual and team goals is required. Each team member must know their roles and how these roles support the overarching objectives of the organization. By setting and pursuing specific, measurable goals, team members can better align their efforts with the strategic direction of the organization. This weekend we’re working on setting 3 month, 1-year and 3-year goals. Here are some key parallels between goal setting in baseball and business: **Clear Objectives**: Just as a batter needs to know what pitch to look for, employees need clear, well-defined goals. This clarity helps individuals focus their efforts in the most effective way possible. **Team Alignment**: In baseball, individual goals contribute to the team's victory. Similarly, in business, aligning personal objectives with the company's strategic goals ensures that everyone is working towards the same outcome. **Persistence**: Just as athletes continually practice to improve their skills, in business, we need to embrace lifelong learning and persistence to enhance our professional capabilities. **Performance Metrics**: Metrics in baseball like ERA or batting averages are akin to performance indicators in business. Both provide measurable ways to gauge success and areas for improvement. **Adaptability**: Players must adapt their strategies based on game dynamics, just as businesses must be flexible and responsive to market changes. This adaptability is crucial to overcoming challenges and capitalizing on opportunities. 5. **Commitment to Progress**: Both fields require a commitment to continuous improvement. Whether it’s a player refining their skills or a professional expanding their expertise, growth is a continual pursuit. The discipline of goal setting is a powerful tool that transcends the context in which it is applied. Whether aiming for a home run or closing a business deal, the principles of setting and achieving goals remain the same. #BusinessStrategy #Leadership #GoalSetting #Teamwork #Baseball