The document discusses methods for formulating sectoral goals based on analyzing problems and gaps between a sector's current reality and its vision. It describes goal setting as important for planning to provide direction, evaluation criteria, and standards for measuring success. Goals can be derived from analyzing the vision-reality gap, problem-solution matrices, map overlays, community monitoring, and local governance reviews. Two methods are outlined - the short method inverts problems into goals, while the long method explores problems' causes, implications, and develops policy interventions stated as goals. Examples are provided to illustrate applying these goal formulation techniques.