We all have dreams of finding fame and fortune and winning the respect and admiration of others. To make our dream come true, we need to set specific, measurable goals with realistic, achievable deadlines. The same is true in any developing economy. Goals are important for at least four reasons

1. Goals provide a sense of direction: Without a goal, the managers of a developing economy tend to muddle along, reacting to environmental changes without a clear sense of what they really want to achieve. By setting goals, they bolster their motivation and gain a source of inspiration that helps them overcome the inevitable obstacles they encounter.

2. Goals focus our efforts:  Every person and every organization has limited resources and a wide range of possible ways to use them. In selecting a single goal or a set of related goals, we establish priorities and make a commitment about the way we use our scarce resources. This is especially important in a developing economy, where the managers must coordinate the actions of many investors of diverse origins.

3. Goals guide our plans and decisions: What we set, as goals will shape both our long-term and short-term plans and help make many key decisions. Managers in a developing economy face similar decisions, which are clarified by asking, What is our goal? Will this action move us toward or away from our organizational goal?

4. Goals help us evaluate our progress: A clearly stated, measurable goal with a specific deadline becomes a standard of performance that lets individuals and managers alike evaluate their progress. Thus, goals are an essential part of controlling the process of making sure that actions are in keeping with goals and the plans created to achieve them. If we find we are straying off course or if we encounter unforeseen contingencies, we can take corrective action by modifying our plan.

Tarun Taunk

Editor-In-Chief