Why Do Good Goals Stay “on Paper” - and How Can We Change That?

12.01.2026

Olga Dzene, Leadership Development Expert, Figure Baltic Advisory

January is often the time when employees and managers across many organisations agree on goals for the year ahead. These discussions usually cover both company-wide objectives and individual development goals. But how do we set goals that are both inspiring and realistically achievable? And how can we ensure that goals do not remain merely “on paper” but are actually accomplished? Defining and tracking goals is precisely where many leaders still struggle.

Inspiring yet precisely measurable goals

When talking about goal setting, it is important to distinguish between different types of goals. Some goals are based on the SMART principle — they are specific, measurable, achievable, relevant, and time-bound. In contrast, the OKR (Objectives and Key Results) approach focuses on ambitious and inspiring objectives that stretch a team’s capabilities and foster innovation. However, to ensure these objectives do not turn into mere slogans, they must be supported by clearly defined performance indicators (Key Performance Indicators, or KPIs).

Every organisation is advised to define both types of goals, striking a balance between inspiration and motivation on the one hand, and concrete, measurable outcomes on the other — such as sales volumes, revenue, or similar metrics.

Long-term and short-term goals

Many experts recommend keeping the balanced scorecard in mind when defining goals. This framework emphasises that goals should cover four areas: finance, customers, internal processes, and development. It serves as a reminder that focusing solely on financial goals is a weak approach. When defining expected results, organisations must also pay attention to the other dimensions.

Goals can also be classified by their time horizon: strategic goals are set for a longer period (typically a year or more and usually at the organisational level); tactical goals apply to a shorter timeframe (often at the departmental level); and operational or individual goals, as the name suggests, are meant to be achieved in the short term.

A common stumbling block - goal alignment

It is crucial that all goals are aligned with one another: short-term goals should support long-term objectives, and each employee’s individual development goals should contribute positively to the organisation’s strategic direction. Unfortunately, goal alignment — including alignment between different departments and organisational levels — remains a major challenge for many organisations.

Often, clear and well-defined goals exist only at the individual level, while overall organisational goals remain abstract and unclear. As a result, employees lack a clear understanding of the “big picture,” which leads to lower engagement and declining motivation. Another common issue is overlapping goals, which can result in inefficient use of resources.

Goals should not come only “from the top”

To avoid these pitfalls, goal cascading is essential. This is a process where overall organisational goals are broken down step by step so that every employee understands how their work contributes to the bigger picture. First, strategic goals are defined at the organisational level; these then translate into departmental goals, which in turn lead to individual goals. This approach helps prevent situations where everyone is busy, yet not everyone is moving in the same direction.

At the same time, it is equally important that goals do not come solely “from the top.” If organisations want employees to engage with maximum commitment, they must be involved in defining goals. Participation creates a sense of ownership and responsibility for results. When employees understand why certain goals have been set, see how they align with their own perspectives, and recognise their connection to organisational development, goals become more meaningful and motivating.

Individual employee development goals

Engagement and a sense of belonging can also be strengthened through clearly defined individual development goals. Thoughtfully designed personal development objectives can directly support organisational goals - for example, by encouraging the acquisition of foreign language skills or the development of digital competencies.

Naturally, the employee’s own motivation is essential. A manager cannot set effective development goals unilaterally, based solely on organisational needs. However, employers can and should support goals that benefit both the employee and the organisation. This may also include goals related to healthier lifestyles, which in the long term can reduce absenteeism due to illness.

Goal setting does not end with definition

Another common mistake is that once goals are defined, they are often forgotten. It is recommended to review goals at least once a month to assess progress and identify any necessary adjustments. Individual development goals should also not be left without follow-up. One-on-one discussions about development progress at least once per quarter can support both managers and employees by providing motivation and accountability.

Many employees admit that they frequently experience a promising start - clear evaluation, defined goals, a solid plan — but then nothing follows. What is missing is ongoing collaboration, support, and dialogue on the way toward achieving these goals.

Goals alone do not guarantee results. They create real value only when they are regularly reviewed, discussed, and adapted to changing circumstances, while maintaining an open dialogue between managers and employees. Goal setting is not a one-off exercise at the beginning of the year, but a continuous process that requires attention, feedback, and mutual trust. Only then do goals become practical working tools rather than formal documents, enabling organisations to move consistently toward sustainable results.