Goal Setting for Business Management and Stock Investment

Earlier posts on this web log have deliberated on Environment Scanning. This first step in crafting business strategy throws up multiple options. It is the same for stock investing. Environment Scanning of countries, sectors, and industries will throw up more stock picks than any portfolio can handle.

Goal setting helps to craft strategy. Goals are critical for business managers and for stock investors alike.

What is the big deal with goals?

Is it simply a matter of common sense?

Here are some benefits of goals set by professional business management methods:

1. They are written. This helps all stake holders pull in one direction.

2. They are specified. Each goal should have quality and quantity parameters for strategic relevance. Quantification should be in terms of both cost and time.

3. They have priorities. We love to eat our cakes and have them too. Goals tend to contradict each other. Trade-offs should be transparent in goals set for the crafting of strategy.

4. They are adaptable. Goals cannot be written in stone. They should not change by the minute either. Business managers and stock investors need a process for periodic review and thorough iteration of goals.

5. They are inclusive. Humans are social animals. Any business executive or stock investor who sets goals in his or her head, asks for execution trouble. All members of an organization or investment club should have ample opportunities to debate goals. Criticism must be actively encouraged.

It is best to explain these concepts with examples. You will find a series starting tomorrow. Please contribute either by emailing

StockWay.MyView@gmail.com

or by leaving a post below.

A post will be public. Emails will be treated in confidence.

See you tomorrow, and please remember to bring at least one new friend every time you visit.