Most business observers think that setting targets is a recipe for improving performance. They're wrong. Targets are a dangerous distraction. Here's how to create a much better recipe for success.

1. Aargh! We keep missing our targets!

2. This is a brief presenta6on about how to create
a recipe for the success of your business.
Hint: it’s not by crea6ng targets.

3. Most people in business think that
se$ng targets leads to be.er results.
The truth? Targets are a dangerous distrac3on.

4. You spread
your
remaining
resources too
thinly
You struggle
to hit sales
targets
You cut costs
to protect
profit targets
Example 1: You get caught in the cost-cuHng trap

5. Everyone
works longer
hours with
less thinking
6me
They make
mistakes
You see
produc6vity
fall
You add more
goals and cut
heads
Example 2: You get told to “do more with less”

6. You innovate
You divert
resources to
new ventures
(which are less
profitable)
Your profits
fall, so you cut
marke6ng
budgets
Your core
business
stagnates
Example 3: Aggressive growth targets mean that you have to innovate

7. You change
marke6ng
messages
You
weaken the
brand
You
confuse
customers/
clients
You see
results
falter
Example 4: Targets start dicta6ng strategy

8. These are all vicious circles, caused by bad targets.

10. What you want instead is a recipe for a virtuous circle
Profit
Reinvest
Grow

11. “But we s6ll have to hit our targets…”

12. Sick target culture Healthy target culture
• Cut costs
• Do more with less
• Demand more growth
• Let targets dictate strategy
• Create a recipe for success, and target THAT.
• Check that growth and profit follow.
Needed: a healthier way to set targets

13. “Create a recipe for success, and target THAT.”
What does a ‘recipe for success’ look like?

14. A recipe is
- a set of ingredients
- a means of combining them

15. (You need a recipe for success anyway,
even if you haven’t wri]en it down yet.)

16. Your recipe for business success includes ingredients like:
Your exper3se – what does your organisa6on do well?
Your brand – how do your clients or customers experience what you offer?
A sustainable financial model – how do you create profit, repeatedly?
(Avoid generali6es like “good people”)
?
Exper6se
Financial
model Brand

17. So, where does your business work well? Now, and in the past?
Which ingredients are ‘eternal’ and which need upda6ng?
?
Exper6se
Financial
model Brand

18. And what’s your CAUSE as a business? This could be your secret
ingredient for mo6va6ng all stakeholders.
“This is what
we care
about. This is
what we bring
to the world.”
Cause
Exper6se
Financial
model Brand

19. If those are your key
ingredients, how do
you combine them for
success? What good
business prac6ces do
you follow?

20. Here’s an example of good ways to combine ingredients:
Cause
Exper6se
Financial
model
Brand
Do fewer things be]er
Focus on growing the profitable core
Be highly selec6ve about innova6on
Increase value to the customer over 6me
Build exper6se to become world-class

21. Together, this is your recipe for succeeding as a business.
Ingredients How to combine them
Cause
Exper6se
Financial
model
Brand
Do fewer things be]er
Focus on growing the profitable core
Be highly selec6ve about innova6on
Increase value to the customer over 6me
Build relevant exper6se to become world-class

22. Rather than seHng targets in the tradi6onal way,
find ways to measure how well you’re following your recipe.
With a good recipe, growth and profit will follow.

23. Goodbye,
unhealthy
targets…

25. Do you sense that targets aren’t working in your business?
Want a recipe for a healthy business instead?
Contact me: charles@charleskingsmill.com