How I Set Goals That ACTUALLY MAKE MONEY

Summary

This video script introduces a unique four-step goal-setting process inspired by science rather than traditional business books. It emphasizes identifying the core problem, forming a hypothesis to test potential solutions, defining the actions and expected outcomes, and reviewing the results to iterate and improve. The speaker advocates for incremental improvements and understanding the bigger picture of how individual efforts contribute to company growth, encouraging a business owner mindset for all employees.

Takeaways

• 🔍 The speaker introduces a unique four-step goal-setting process derived from a science book rather than traditional business literature.
• 🧐 The first step is to identify the problem being solved, emphasizing that not all goals may be necessary if they don't address a real issue.
• 📈 Goals are categorized into three main objectives: acquiring more customers, increasing customer value, or enhancing the enterprise value of the company.
• 🤔 The importance of understanding one's role and how it contributes to the company's overall growth is highlighted, especially for those in lower organizational positions.
• ⚠️ The need to avoid setting goals without a clear connection to the company's broader objectives is stressed.
• 💡 The second step involves creating a hypothesis about what will happen if the goal is achieved, rather than just setting a target.
• 🔄 The process encourages iterative testing and learning, recognizing that not all attempts will yield the desired outcome, which is why it's called a hypothesis.
• 📝 The third step outlines the specific actions (inputs) and expected outcomes (outputs), establishing a baseline and desired changes.
• 📊 The fourth step is a review phase, where the actual results are compared to the hypothesis to determine if the expected outcomes were achieved.
• 📈 The speaker advocates for incremental improvements, suggesting that small, consistent changes can lead to significant growth over time.
• 💼 The process is meant to be reflective and time-consuming, as it requires deep thought into the purpose and potential impact of each goal.
• 👥 The goal-setting framework is applicable across all levels of an organization, from top executives to individual contributors, fostering a deeper understanding of each person's contribution to the company's success.

Q & A

What is the primary purpose of the four-step goal setting process described in the transcript?

The primary purpose is to ensure that goals are set with a clear understanding of the problem being solved, the hypothesis of what will happen if the goal is achieved, the specific actions to be taken, and the expected outcomes, ultimately tying everything back to the company's overarching objectives.

Why is it important to identify the problem before setting a goal?

Identifying the problem is crucial because it ensures that the goal is relevant and necessary. It helps in avoiding unnecessary tasks and ensures that the goal contributes to the company's broader objectives, especially for those who may not be connected to the overall company strategy.

What are the three main categories that most goals should be related to according to the transcript?

Most goals should be related to either getting more customers, making customers worth more, or increasing the enterprise value of the company.

What is a hypothesis in the context of goal setting as described in the transcript?

A hypothesis in this context is a proposed explanation or prediction about what will happen if a certain action is taken. It defines both the action (input) and the expected outcome (output), and it's a testable assumption rather than a guaranteed result.

Why is it suggested that setting goals as hypotheses is more effective than stating them as definitive outcomes?

Setting goals as hypotheses acknowledges the uncertainty in business outcomes. It allows for testing and learning, making adjustments based on results rather than sticking to a rigid plan that may not yield the desired results.

What is the significance of the 'input' and 'output' variables in the goal setting process?

The 'input' refers to the specific action or activity that will be undertaken to achieve the goal, while the 'output' refers to the expected result or outcome. Understanding these variables helps in clearly defining the goal and measuring its success.

How does the transcript suggest reviewing the results after the goal setting process is implemented?

The transcript suggests reviewing the results by comparing the actual outcomes with the expected outcomes. This involves checking if the input (action) was executed and if the desired output (result) was achieved, allowing for reflection and adjustment of the hypothesis.

What is the importance of making incremental improvements in business growth as mentioned in the transcript?

Incremental improvements are important because they can lead to significant growth over time. Small, consistent improvements in various areas can collectively result in substantial progress and make a business more competitive.

How does the transcript relate the goal setting process to employee motivation and understanding their role in the company?

The transcript suggests that involving employees in the goal setting process at all levels can increase their motivation by helping them understand how their daily tasks contribute to the company's growth and success.

What is the role of department heads in the goal setting process as described in the transcript?

Department heads are expected to align their department's goals with the company's overarching objectives. They should develop multiple activities or hypotheses to support the company's main goals, ensuring that everyone's efforts contribute to the company's success.

Why is it recommended to spend time reflecting on the goal setting process before implementing it?

Reflecting on the goal setting process before implementation is recommended to ensure that the goals are well thought out and that there is a clear understanding of what is being attempted to improve. This reflection helps in setting meaningful and achievable goals.