The report produced by the Defense Business Board (2012) describes the best practices of private business that could be applied for the management of the Department of Defense (DoD). The observation identified that the strategies are chosen by private sector companies and DoD are completely different. The practices of the former include eliminating “non-profitable parts of the company in down markets”, transparency and control over data, focus on activities that could lead to growth in the future (Defense Business Board, 2012, p. 9). Still, one could argue that the most essential practice implies the setting of realistic and precise goals and strict adherence to them. The current paper explains why this way of goal setting is one of the most important actions that any business could undertake to prosper.
To begin with, any company could benefit only when there is a clear plan of action that takes into consideration all probable difficulties and hindrances that the business has to face. When the leadership of a company admits the possibility of the occurrence of some challenges, then it could decide to take such actions that would minimize the negative impacts for the company. At the same time, it could be suggested that when the administration sets optimistic goals, the workers become more motivated to work since they understand that the results of their efforts would be that good. Nevertheless, the employees might lose their aspiration to work hard when, finally, they would notice that they fail to achieve the established goals.
Another point that should be discussed about the previously mentioned practice is that the management of the business should strictly follow the plan and do not change frequently. Undoubtedly, one could claim that when the plan is created for the following five years, then it requires to be changed annually to adapt it to the new circumstances. To some extent, this statement is true. However, modification of targets during the initial set time should be an exception rather than common practice. When a companys leadership managed to create a rational and well-developed plan, then the probability that it would require some changes is quite low. To make a long-term strategy of high quality, the administration needs to conduct a scrupulous analysis of the market and the current economic situation. Besides, when the entire company strictly follows the targets that were set in the long-term perspective, it gives it stability and eradicates the possibility of the appearance of confusion and misunderstanding connected with the change of the preceding goals.
Finally, it is essential to mention that the first thing that every beginning entrepreneur is being taught, is that the goals that he or she sets for the company should be created according to the method of SMART. This way, goals should be specific, measurable, achievable, realistic, and time-bound. The practice of stating proper targets is immensely significant since it is the first step to further actions of the entire firm. If the first taken step is wrong, then the whole path of the company would be imbued with difficulties and challenges. Although it might be morally hard to admit that the business is going to face decline, only ration and objective acceptance of the companys weak sides could help to deal with hardships, downturns, and crises successfully. Thus, it could be concluded that without the practice of setting realistic goals and closely following them, the company minimizes its chances for prosperity.
Reference
Defense Business Board (2012). Report to the Secretary of Defense: Applying best business practices from corporate performance management to DoD. Web.