How to develop a target-setting process.
Develop a comprehensive target-setting process and ensure targets are clearly defined and assigned. American Express says that any goal setting must be grounded in financial knowledge. Firstly, business leaders must know exactly how much money the company has and where the money goes, therefore delegation is fundamental. The second goal is financial management. A company’s money should work for them. Managers should break down top-level targets into operational and long-term targets for individual business units. Financial perspective is the third and final goal. By regularly reviewing a company’s financial progress, strengths and weaknesses can be identified.