Small business owners often say to me “Why do I need a Business Plan?” and my usual answer is that a well-crafted business plan, used in conjunction with a robust set of financial projections, can provide a “Business SatNav”; helping you get from where you are today to where you want to be.
There is however another significant advantage to be gained from having a Business Plan.
A good Business Plan sets out the vision for what the business will look like in the future and details what needs to be done, by when and by whom for that vision to become a reality.
The plan however should not purely be the sole territory of the business owner: sharing it with the team ensures everyone understands the direction of travel and the overall destination; which is essential if goal congruence to be achieved.
Goal congruence means everyone within a business is working collectively towards achieving the same objectives and overall vision, and when this happens, several benefits occur:
- there is more cooperation and collaboration
- people are more likely to make decisions which prioritise the achievement of the business’ goals over their own personal preferences
- staff engagement and motivation increases as people understand where their contribution fits in with the overall vision
- performance management is more effective as individuals can be assessed based on their contribution to overall business success and rewarded appropriately
In this fast-paced and competitive world goal congruence is a critical factor in the success of any small business but only occurs when every member of the team is working towards the same vision. For that to happen, everyone needs to understand what the business is trying to achieve; which brings us right back to the benefits of having a Business Plan
A well-crafted and dynamic plan which is then effectively communicated to everyone in the team, with regular updates and feedback sessions so that people see where their efforts fit into the big picture, will facilitate that all important goal congruence. It will allow everyone to align their individual efforts with the achievement of the business’ overall objectives, unlocking the full potential for growth and profitability.
Goal alignment not only benefits the business as a whole, it also promotes a positive and motivated work-place culture where individuals can thrive, creating to a brighter future for everyone.
With that in mind, what can you do to turn goal congruence from a buzz word to the key to success within your business?