Economic Goal Formula

The primary job of a leader and the leadership team is to clearly define the organization’s destination and reverse engineer a plan to get there. The second job is to keep reminding the team about the destination and constantly make corrections to ensure a successful arrival.

Your destination, the mission of every nonprofit, is to solve the customer‘s problem.

There are three reasons most nonprofit economic goals are not met:

They do not include a measurable economic goal.

They do not include a deadline to the goal to provide urgency.

They do not connect the goal directly to the mission.

Donald Miller identified three elements to use as goals for you to inspire your team to action, 

X: Include three economic objectives.

Y: Include a deadline.

Z: Include the reason your mission is important.

We will accomplish X by Y because of Z … your new economic goal formula

We Will Accomplish X … Three Economic Objectives … Financial Action Steps

We place three economic objectives at the beginning. Be specific. They should be your top three economic priorities that help your organization succeed. We use three because the human brain has difficulty focusing on more than three.

Economic objectives need to be financial related, and they need to be measurable. Reducing overhead costs, engaging volunteers as staff, and receiving in-kind donations are examples of non-monetary economic objectives.

Caring about your customers and caring about the bottom line are not mutually exclusive. Without money, the doors close. Leaders should consistently ask and answer questions like:

"What is our financial goal for this month, quarter, year?"

"Did we reach that goal? Why or why not?"

"Should we change the economic priorities in the Mission Statement?"

By Y … Deadline ... Creates a Sense of Urgency.

Include a date the objectives must be accomplished by. The deadline gives your mission statement a sense of urgency, so the team doesn't forget about it.

Because of Z … Explains Why the Mission Matters

This is a great reason for you and your team to drive your mission forward. It reminds the team why you do what you do.

Without the “because” all you have are goals which are less inspirational. A mission is much more important than a goal. When you include the “because” you and your team will be energized leaders and staff around the cause.

Example:

We will engage ten new community resource partners, raise $300,000 through three events, and update existing systems to track/build relationships with champions

by June 30, 2025, 

because breaking poverty's cycle begins by investing to restore the whole person that leads to transformation of the person, family and community.

When you and your team use this formula, you create an economic goal statement that:

Provides three economic objectives for your organization to succeed.

It includes a realistic deadline that increases the team's sense of urgency.

Defines why the mission matters.

Use your new goal statement to remind leaders and staff what is important and why it matters. Include repetition: repetition helps us remember what is important.

Here’s to accomplishing X by Y because of Z,

Wes Legg

Coach & Facilitator

Let's talk about your economic goals. Book a call