I’ve talked a lot about goals and goal development. And it’s for good reasons. Goals are the centripetal force of my workday and in my personal view the lack thereof is one of the greatest challenges facing organizations.

I often ask managers and people I admire ‘what books have influenced your business perspective?’ one of the earliest answers to this question was Eliyahu M. Goldratt’s famous novel “The Goal”. In it Goldratt introduces the ‘Theory of Constraints’ and further he takes a noteworthy stance with regard to productivity:

“Alex, I have come to the conclusion that productivity is the act of bringing a company closer to its goal. Every action that brings a company closer to its goal is productive. Every action that does not bring a company closer to its goal is not productive.”

…

“But [that’s] too simplified” I tell him. “It doesn’t tell me anything. I mean, if I’m moving toward my goal I’m productive and if I’m not, then I’m not productive so what?”

“What I’m telling you is, productivity is meaningless unless you know what your goal is.” he says.

-         Chapter 4, The Goal by Eliyahu M. Goldratt

More than 25 years after The Goal’s first publications most businesses are stuck in Chapter Four. Businesses frequently chase goals such as innovation, “efficiency”, and agility; which are tactics not goals. In fact, I find the most common business challenges are in fact disagreements over organizational goals that fester until they ultimately impact operations.

For example when Steven Sinofsky, President of Windows Division, Microsoft, took on the challenge of creating a new organizational culture he created comprehensive, arguably exhaustive, Pre-Planning and Planning Milestones within the product development cycle. These milestones align the organization towards a shared goal (ie. One Strategy). Specifically, these milestones are structured so that everyone who has an idea – has an opportunity for that idea to be heard, discussed and debated within the normal planning cycle. Therefore, when it’s time to execute the risk of subversion due to disagreement of goals is mitigated; everyone has had an earnest opportunity to be heard.

To me this organizational alignment and buy-in towards a common goal is the singular most important thing an organization can invest in.

Let’s take a look at those tactics once again: innovation, efficiency, and agility. These goals center on increasing product attractiveness (to eventually generate sales), lowering a business’ cost structure, and increasing responsiveness to customer demands as well as lowering a business’ cost structure. To execute these tactics businesses outsource, layoff, and higher ‘creative’ and brilliant talent to staff new initiatives or spinoff new organizations focused on ‘innovation’. But assume a business’ goal is to increase profit the universe of options far exceed these staple tactics of corporate raiders and flailing CEOs alike; where are the new age tactics aligned to this goal?

To answer this question requires exploration of yet another Chapter Four. To be continued.