How to set goals for the new year: A guide that actually works

Jan 5

Every January, people sit down with a fresh set of goals: lose weight, save money, hit a new milestone at work. And every year, most of those goals don't last.

Think of the closest gym to where you live. On January 3rd, the parking lot is jammed. Two weeks later, it's half-empty. That drop-off isn't because everyone suddenly turned lazy or stopped caring.

The statistics tell a sobering story. Only 9% of Americans who make New Year's resolutions actually keep them. 23% quit in the first week, and 43% expect to fail before February even begins. Most people abandon their goals by January 19th, dubbed "Quitters Day" by researchers tracking millions of goal attempts.

The good news? The problem is not goal setting itself. The problem is how we approach it.

Why most goals fail

It's not about discipline. Goals fail when the starting point is wrong.

Most goals are designed to fix something that feels broken. "If I lose 20 pounds, I'll feel better about myself." "If I hit this sales number, my job will finally feel manageable." These kinds of goals are built on the belief that something about you, or your life, isn't enough as it is. That mindset makes the process heavy before it even begins.

A better way is to start from vision, not from deficiency. Instead of asking what's wrong, ask:

What do I want my life to feel like?
What do I notice about myself when I imagine being there?
What becomes possible when I get there?

Take the weight loss example. The number on the scale is not the point. What you're really after might be energy, confidence, or freedom in your body. If you keep that vision front and center, your actions start to line up with what you're creating, not with what you're trying to "fix."

Research on New Year's resolutions reveals other common pitfalls too. Most people set goals before they're truly ready to commit. They choose what sounds good rather than what genuinely matters to them. They make goals too vague, too ambitious without support, or completely disconnected from their real life circumstances.

35% of people who fail their goals cite losing motivation, followed by being too busy (19%) and changing priorities (18%). These aren't character flaws. They're predictable outcomes of poor goal design.

How to set a goal for the new year

Effective goal setting follows a clear process. Here's how to create goals that work:

Start with vision, not deficiency
Before you write anything down, get clear on your priorities. Skip the "should" goals (what you think you're supposed to want) and focus on what you genuinely care about. Shoulds get us into so much trouble. They're usually someone else's voice in our head. "I should exercise more." "I should save more money." "I should get promoted this year." The problem is, you're already wrong before you even start. You're chasing a goal that doesn't actually belong to you.

Instead, anchor your goals in a vision that matters to you. Instead of asking what's wrong, ask:

What do I want my life to feel like?
What do I notice about myself when I imagine being there?
What becomes possible when I get there?

Picture the future you want to create, not the part of yourself you're trying to fix.

Make it approach-oriented, not avoidance
Research shows that 58.9% of people with approach-oriented goals succeed, compared to only 47.1% with avoidance goals. Instead of "stop procrastinating," try "complete my most important task by 10am daily." Frame goals around what you want to do, not what you want to stop doing. Focus on what you're building: "have more energy" instead of "stop staying up late."

Keep it small and manageable
Large goals overwhelm. Small actions build momentum. If your goal takes longer than a month to complete, break it into weekly or monthly milestones. Focus on the immediate next step rather than the distant finish line. Ask: "What's the smallest next move?" The key is to challenge yourself, not burn yourself out.

Build in accountability
People who receive some support and accountability are significantly more successful than those who go it alone. Share your goals with someone who will check in regularly. Better yet, find someone pursuing similar goals and check in together.

For example, about five years ago my sister-in-law and I set up a simple structure around workouts: every time we exercised, we texted each other a single check mark. That's it. It takes less than a second, but on the days I wanted to do anything but work out, knowing she was waiting for that check mark made all the difference. That tiny system has kept me more consistent than any app or fancy tracker ever could. Those little checks literally changed my life.

Let it evolve
Circumstances change. Adjusting a goal doesn't mean failure, it means you're paying attention. Your goals should be firm enough to drive action but flexible enough to adapt when life demands it.

How to set business goals for the new year

The same principle applies at work. Companies often chase "fix-it" goals: cut turnover, reduce errors, trim costs. They're necessary, but they don't inspire.

What does inspire? A vision people can picture themselves in. Instead of "reduce turnover by 10%," imagine "build a team people don't want to leave." Instead of "cut expenses," try "free up resources so we can invest in innovation."

Employees know the difference between a spreadsheet target and a vision worth rallying around.

Here's how leaders can set effective organizational goals:

Align with your bigger vision
MIT Sloan research found that effective business goals must be embedded in frequent discussions, ambitious in scope, measured by specific metrics, and transparent for everyone to see. Your goals should connect clearly to your company's mission and strategy.

Focus on the critical few
Don't set 20 goals. Pick the 3-5 that matter most. Research shows that too many goals dilute focus and reduce the likelihood of achieving any of them. Concentrate your energy where it counts.

Make goals transparent
When everyone in your organization can see the goals and track progress, alignment improves dramatically. Use shared dashboards, regular team meetings, or project management tools to keep goals visible.

Review and adjust regularly
Set quarterly reviews to assess progress. What's working? What needs adjustment? Markets change, priorities shift, and resources fluctuate.

A different way forward

Research on successful goal-achievers shows they do four things consistently well: they set specific and challenging goals, they genuinely want what they're pursuing, they get frequent feedback, and they break big goals into smaller chunks with individual deadlines.

The 9% who succeed aren't superhuman. They're strategic... They choose goals that truly matter to them, design those goals intelligently, build in support and accountability, and stay flexible enough to adjust when life happens.

This year, set fewer goals. Skip the performative goal-setting ritual. Instead, get serious about the handful of changes that would genuinely improve your life or business. When your goals are rooted in vision instead of shoulds, they stop being boxes to check. They become steps toward a life you actually want.

That's the difference between change that fizzles out by mid-January and change that sticks.

Frequently asked questions about KMH Leadership

What is KMH Leadership?
KMH Leadership is a leadership coaching firm founded by Katie Hostasa, a Professional Certified Coach (PCC) with nearly two decades of experience in HR and personal development. We help individuals and organizations unlock their potential through personalized coaching and leadership development programs.

Who does KMH Leadership work with?
We work with corporate executives, emerging leaders, working parents, and anyone seeking personal and professional growth. Whether you're part of a company investing in your team or pursuing your own goals, we're here to support you.

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Katie Hostasa