The Pygmalion Effect...

"When we envision what to achieve and work on it, we not only achieve it but also inspire others on the way."

1) So first things first: Envision i.e Set a goal.

Goal setting in management involves not a random choice of a target; rather it needs a SMART choice.
A goal should be:
Specific:        Goal should be clear, unambiguous and must tell exactly what is expected and why it is important.
Measurable:  Goal should be such that the progress towards achieving it should be measurable. This helps the team to stay on track and reach the target dates.
Attainable:     Goal should be realistic.
Relevant:       Goal should be relevant to the business. Resources needed to achieve the goal should be available and easy to identify.
Time Bound:  Goal should accomplished in a limited time period.

The Goals can also be SMARTER.

Evaluate: Goal should be evaluated regularly and adjusted to account for changes.
Re-Do:   Goals should be re-evaluated after the evaluation process.

Goal setting need not always follow this conventional method. Your goals can be SMART and yet unconventional.
S:    Strategic, Scale - Up, Superiority
M:  Manage, Mastery
A:   Assess, Attract
R:   Reach out, R&D, Re-Use
T:   Transform, Think outside the box.

2) But is Goal Setting Enough?

NO.

Only setting your goals, in the conventional or unconventional method, would not matter if you donot gather resources and start towards attaining that goal.
Once the goal is set, establish building blocks, fundamental tools and processes to reach the goal. Divide work according to the potential and deadlines, divide the goal into short term accomplishments,
timely evaluate the progress and work upon the feedback from this evaluation.

3) When almost all organizations do this, why don't all of them succeed?

Because the most important thing is to cultivate success in your workforce.
Align personal goals of your employees with the goal of the organization. Cultivate a faith of achieving a common goal and use the positive power of expectations to drive your organization to success.


For more on Pygmalion Effect please follow the below links:

http://raymondgarraud.com/2013/02/03/the-pygmalion-effect-in-management-2/

http://humanresources.about.com/od/managementtips/a/mgmtsecret.htm