Company culture has a significant impact on business goals. For example, the research is clear that a positive company culture leads to better employee engagement and higher revenue.

But can business goals—and personal and team goals—impact company culture?

We certainly think so. The simple act of setting goals has an immense effect on improving company culture.

Why? Because setting goals as individuals, with your team and as a company breeds more engaged, motivated, inspired and collaborative employees. Goals support a growth mindset as they set targets for employees to work toward in the near and far future. And we all know that motivated, happy and inspired employees produce better work and inspire others to do the same.

According to Highground research on goal setting, “goals are the starting point for success, whether they are personal, professional, individual, team-based or even those of an entire organization.” We couldn’t agree more.

In this blog post, we’ll guide you, your team and your company through goal setting tips.

How to set goals that improve company culture

Before we set goals for the new year or near future, it’s always a good idea to look back at the past year or past successes, failures and challenges. Use this blog post as a guide for you and your team—and consider doing the same for yourself on a personal and career level.

How past goals inform future successes

Think about the past 12 months overall. A lot can happen (good, bad and otherwise) in 365 days. Overall, how would you describe the past year? If you could choose one word, what would it be and why? Take some time to consider your answer here and write it down. This could be done by yourself or with your team in private or out in the open.

Here’s a list of other questions to ask of yourself, your team and your company:

What are you most proud of from the past year?
What did you learn?
What did you let go of?
What challenges did you overcome?
What did you fear most in the past year?
Have you tackled that fear? If so, how?
What are you most grateful for?

Many of these questions may relate to a specific task, project, challenge or accomplishment you took on (whether successfully or not). Ask yourself what skills or knowledge you learned during that learning curve. What hurdles did you have to overcome?

For example, if you are most proud of advancing into a more senior role at your company, what skills helped you get there and succeed in the new environment? In this different role, did you have to overcome any personal or team challenges? If so, how? What did you learn by achieving this past goal of yours and how did it contribute to your team and your company’s overall mission and goals?

Reflect, write and share your goals

Take time to write out your answers. If you’re sharing them as a team, you may be surprised at how many of your teammates experienced the same moments of pride, success, stress, weakness and so on.

Celebrate wins and acknowledge losses

Lastly, have you celebrated your learnings and successes and reflected on your challenges and failings? Business, career and personal life all move fast. However, it is essential to be present in the moment and acknowledge how far you, your team and your company have come. Celebrate your wins. This simple act is essential for boosting team spirit, morale and camaraderie—and for inspiring new goals.

Great company culture starts with SMART goals

Now that you’ve reflected on past challenges, successes, failures and goals, use this knowledge and understanding to inform your new goals.

When it comes to setting personal, team and company goals, follow the SMART goals criteria:

S – specific
M – measurable
A – achievable
R – relevant
T – time-based

Goals that aren’t specific or measurable are harder to track whether they’ve been achieved. Individual goals that aren’t relevant to what your team or company are aiming to achieve don’t support the growth of the business—and may fall flat. You get the idea.

But if everyone on your team and in your company had a set of SMART goals to work toward—and the time, space, tools, and freedom to achieve them—imagine how motivated and inspired they would be. Think of how great your company’s culture could be.