Find the Formula

In her post last week, Susan described the difference between Results Goals and Activity Goals.  A Results Goal is something that you can’t directly control; whereas, an Activity Goal is something over which you have direct control.

The real challenge is figuring out how to create a series of Activity Goals that will enable you to reach your Results Goal.

The simplest way to approach this challenge is with something I call―Find the Formula.  In other words, what are the elements that will drive that particular result?

For example, let’s say that you have created a Results Goal to lose 10 pounds in the next three months.  We all know the basic formula for losing weight: exercise more and eat less.

So, you simply need to create Activity Goals around exercising more (Use the rowing machine four days a week for 30 minutes each day) and eating less (Consume 1,800 or fewer calories six days a week) to lose those ten pounds.

To find the formula for any Results Goal, ask yourself, “How am I going to do that?” Then ask yourself, “And how am I going to do that?” Keep asking that question until you’ve broken it down to an action you can directly control.

Let’s say you have set a Results Goal to bring in $10 million in new assets in 2020. Here’s the conversation you can have with yourself:

How am I going to bring in $10 million in new assets in 2020?

  • I have to talk to more people and get them to become new clients.

OK, so how am I going to get them to become new clients?

  • I guess I need something compelling to say in my introductory conversation.

Sounds like the first part of the formula is: Number of New People times Something Compelling to Say.  So, I can establish an Activity Goal to create a better script for my Introductory Conversation.  But how am I going to find more people to talk to?

  • I suppose I can promote referrals with my existing clients.

And how am I going to promote referrals with my existing clients?  What’s the formula for that?

  • I’m catching on here. It’s the number of clients I talk to times my effectiveness in promoting referrals.  I can create Activity Goals for the number of clients I speak to about referrals as well as what I say to them.”

Exactly! That’s your formula: Number of clients I speak with times the effectiveness of what I say to promote referrals times the number of referrals times the effectiveness of my introductory conversation.

That’s three activity goals: two to improve scripts and one regarding the number of clients I speak to.

Once you have that formula, you can start to solve for the specific metrics you need to hit.

If the Results Goal is $10 million, and the average new client brings in $1 million, that’s 10 new clients.

If 25% of the clients you speak with provide a referral and 50% of those referrals ultimately become clients, that means you need to promote referrals with 80 clients in the course of one year to hit your Results Goal.

Finding the formula will help you create a specific action plan designed to achieve the results you seek.

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