How I Set Goals That ACTUALLY MAKE MONEY
Four-Step Goal Setting Process
In this video, the speaker discusses a four-step goal setting process that is different from what is commonly found in literature and videos. The process involves identifying the problem to be solved, creating a hypothesis, determining the input and output variables, and reviewing the results.
Identifying the Problem
- Lower-level employees may not be as connected to the company's overarching goals.
- Goals should help get more customers, make customers worth more, or increase enterprise value.
- Goals should be tied to solving a specific problem.
Creating a Hypothesis
- A hypothesis defines both the activity (input) and expected outcome (output).
- Stating goals as hypotheses allows for testing without guaranteeing outcomes.
Determining Input and Output Variables
- The input variable is what will be done to solve the problem.
- The output variable is what is expected to happen as a result of the input.
- Reviewing results determines if desired outcomes were achieved.
Overall, this video provides an alternative approach to goal setting that emphasizes problem-solving and hypothesis testing. By breaking down goals into specific inputs and outputs, businesses can better track progress towards achieving their objectives.
The Importance of Incremental Improvements
In this section, the speaker emphasizes the importance of making small improvements over time to achieve significant growth in business.
One Percent Improvements
- Making a series of one percent improvements can lead to significant growth in business.
- Big businesses often grow by making a series of small improvements.
- Excel math shows that making small improvements consistently can triple a business's revenue.
Systems for Growth
- To compete with big businesses, smaller companies need to implement systems for incremental improvement.
- Jim Launch grew 40% last year by doing everything they were currently doing just a little bit better.
- Internal standard operating procedures and messaging are crucial for creating growth in a company.
Goal Setting Framework
In this section, the speaker discusses the importance of goal setting and provides a simple framework for effective goal setting.
Top-down Goal Setting
- Goals should start from the top down and be broken down into multiple activities.
- Employees at all levels should participate in goal setting to understand how their work ties into the bigger picture.
- Hypotheses should be created based on goals, and progress should be measured regularly.
Simple Goal Setting Framework
- The simplest goal-setting framework involves identifying problems, creating hypotheses, taking action, measuring results, and adjusting accordingly.
- This framework has been successful across all portfolio companies.
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