December 28, 2005

• New Year’s Resolutions Part 2

  I have mentioned that I cannot even remember what my New Year’s resolutions were last year.  I don’t think I even made any.  I tend to set goals but I just don’t typically think of them as New Year’s resolutions.  This is the time of the year where we have set goals for the next year.  In a post recently I had us write down New Year’s resolutions that we really didn’t expect to achieve.

  
  

  I want to focus on how I go about setting goals.  To begin with, my goals all  must be simple to understand.  I can usually communicate my goals in seconds.  If I can’t understand my goals, no one else can.

  
  

  I also have this little pattern that I follow that has worked for me.  I tend to set my goals by multiplying the existing goal by ten.  For example, say your company puts out 1000 widgets a year.  I would multiply the goal times 10 and set the goal at 10,000 widgets.  It pushes a person to think in new ways.  It is not realistic to multiply your whole business by 10 during the next year.  So instead look around your areas of responsibility and see if one little part can be multiplied by 10.  Multiplying one little area of your work place by 10 will make you look like a genius even if it is a very small area.  I have used this pattern to get promotions.

  
  

  In my current job, I wanted to see some success when I started working here.  I knew I could not increase my main responsibility times 10.  It wouldn’t be practical.  It was way to large.  But there was one part of my work that usually had about 1 or 2 units involved.  I decided to multiply it times ten and set my goal at 20 units.  It worked.  Everyone in the organization noticed it.  I think it was the biggest reason I got my raise this year.  Realize it was only one part of my job.  In fact it was a simple part of my job.  But because it was smaller and more mobile, it could grow in a way that the bigger item couldn’t grow.

  
  

  I rarely announce goals in advance.  I just go after them.  I tell friends my goals but I don’t tell anyone from work.  This way I am held accountable but I don’t suffer from high expectation from my work.  There are those who will tell you to tell people goals at your work.  I disagree.  Say you decided to multiply the area we are talking about by 10.  Say you only multiply it by 7.  People will see it as a failure instead.  If you have just told your friends, you have not suffered to high expectations.  If you told your people from work, you have failed in their eyes.

  
  

  I also write my goals down in a place I can see every day.  I am the type of person that likes to see my goals in front of me everyday.  I have set a goal for my big area of responsibility this year.  I am trying to increase that area by 20%.  That is a huge jump.  When talking to my coworkers, I have set a goal in front of them at about 8% increase.  So I have set my personal goal much higher.  But I have communicated a smaller goal to the people that are around me.

  
  

  I apply this principle to every area of my life.  I do it with my retirement account.  Take what you think people are saying you need for retirement and multiply it by ten.  How do you get there?  It is easier than you think.  Take your raise this year.  Say it is 3%.  Take the whole raise and throw it into your retirement fund.  Your company probably has matching funds up to a certain amount.  If you do this for a few years straight, your retirement plan will explode.  You will be surprised at how fast it can grow.  Say you place your raise into your retirement for the next three years.  Chances are you will be putting over 10% in your retirement by the end of that period.  If your company has matching funds, you may be somewhere around 15%. 

  
  

  If you are already putting 10% in your retirement fund, set a goal at 20%.  There are caps on retirement funds but most people can put it in for their spouse.  In fact, it is a good idea to talk your spouse into increasing their account at the same time.  If you both increase over the next few years, you will see a huge increase.  Most companies will take the money directly out of your paycheck and place it into your retirement fund.  So you will never miss it.  The raise won’t make much difference in how much you have in your paycheck.

  
  

  All of the goals I am talking about our achievable.  You set small goals to increase over time.  I have found that most people make a mistake in making goals.  They set goals that are not realistic.  So they give up.  By taking on a small goal we can achieve the desired destination.

  
  

  What simple goal would you like to set for yourself this year?

  • 12:04 pm
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