A recent PwC study found that employees who are disciplined about setting daily goals not only improve their performance but also feel better about their work. According to the study, people who set at least four daily goals every week were 34% more likely to hit their KPI targets compared to those who didn’t set goals regularly. 

Setting goals keeps you motivated. Being able to follow through with your goals can positively impact your individual performance. In an organization, setting goals ensures that everyone is on the same page and working toward a shared vision or objective. In organizations where employees know that their goals are aligned with larger company-wide objectives, they’re 10.1x more likely to feel motivated and take action, according to BI WORLDWIDE’s survey. It also gives them a stronger sense of meaning and purpose in their work, making them 8.9x more likely to value their job. 

But is that all there is to unlocking better performance and achieving success? 

What Is the Goal-Setting Theory?

Understanding the goal-setting theory enables organizations to keep their employees motivated and moving toward their goals. 

Proposed by psychologists Edwin Locke and Gary Latham in the 1960s, the goal-setting theory suggests that clear, specific, and challenging goals, coupled with constructive feedback, are more effective and can motivate employees better than unclear or easy goals. When employees are more motivated, they’re more likely to achieve their goals. 

The goal-setting theory of motivation is also considered the foundation for one of the most well-known and widely used goal-setting frameworks, the SMART goals.

What Makes Goal-Setting Successful?

The theory operates on five main principles:

• Clarity. According to the goal-setting theory, setting clear and specific goals can lead to higher levels of success. That’s because such goals can help avoid misunderstandings or miscommunication. 
• Challenge. Your goals must be challenging enough to keep you focused and engaged. By seeing the progress you’re making, you’re encouraged to give your best and rise to the challenge. Note that it’s important to not make your goals too difficult or unrealistic as this can backfire and make you feel like you’re not good enough. 
• Commitment. Being committed to achieving a goal makes the process of getting there more enjoyable. If you’re not committed, following through with your goals will become an even bigger challenge. 
• Feedback. Regular constructive or positive feedback is a key component of this theory. Aside from helping you stay on track, feedback helps you focus on areas of improvement. When you have critical insights, you’re in a much better position to recalibrate your approach. 
• Task complexity. When a goal seems overwhelming or impossible, it helps to break it into smaller and more manageable goals. Every time you achieve a small goal, review your progress as you continue working toward the larger goal.
  
  

Goal-Setting Theories and Motivation: How to Set Effective and Motivating Goals

Setting successful goals involves a lot of careful planning and doing away with prevailing wisdom. Ask yourself: Why do you want to achieve this particular goal? Knowing your why helps you maintain your progress on these goals while helping you see their long-term implications.

Bid Your Goals Goodbye

Yes, there is such a thing as “goal competition.” 

“Goal competition says that one of the greatest barriers to achieving your goals is the other goals you have. In other words, your goals are competing with one another for your time and attention,” shares James Clear. So what do you need to do? If you want to make progress quickly, Clear suggests that you reorganize your priorities and focus on one goal at a time.

Focus on Strengths-Based Goal Setting

Strengths-based goal setting, as the name suggests, is setting goals in a way that leverages your strengths, skills, and experiences. This approach helps individuals see the value they bring to organizations and allows them to focus on their strengths instead of weaknesses. The idea here is that you’re more likely to succeed and achieve your goals by focusing on what you’re doing well, instead of trying to improve areas that you’re not performing well in, shares Dr. Gemma Leigh Roberts.  

Support and Encourage Your Employees

This empowers your employees and helps them feel inspired. The same BI WORLDWIDE survey found that employees who receive support and encouragement from their team are more likely to put more effort into their work. Moreover, they’re also 8.1x more likely to say that they actively find ways to improve how they work.

Build Systems Rather Than Goals

By now, we’ve established that goals are vital to any organization because they provide you and your employees with a clear direction and purpose. They help keep you on track and allow you to focus on mission-critical tasks. 

When you have SMART goals, you’re well on your way to achieving whatever it is that you want. However, the problem with goals is that they can be limiting. They also don’t guarantee good results.  

“You do not rise to the level of your goals. You fall to the level of your systems.”

This famous quote from Atomic Habits author James Clear makes us rethink our relationship with goals and systems. In one of his articles, Clear shares that goals aren’t useless—they help you set a direction. However, if you want to make progress and get better results, you must focus on systems instead. 

“Your goal is your desired outcome. Your system is the collection of daily habits that will get you there,” says Clear. 

The problem with focusing too much on goals is that both “winners” and “losers” share the same goals. “And if successful and unsuccessful people share the same goals, then the goal cannot be what differentiates the winners from the losers,” explains Clear in Atomic Habits. The small yet continuous improvements you’re making are what will help you achieve different or better outcomes. 

What’s more, goals can influence long-term progress. “The purpose of setting goals is to win the game. The purpose of building systems is to continue playing the game,” Clear explains. The key to creating long-term and continuous improvement, whether it’s in your personal life or within your organization, is creating systems that will allow you to commit to and refine your process of how you get results. 

Knowing how to set goals and create systems that work for you is an ongoing journey. Upwyse is here to help. Book a call to get started.