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Clearly aligning goals with values boosts performance, lifts culture, and drives a healthy relationship between leaders and employees, an executive coach says.

As a leader, setting clearly defined goals "magically clarifies what your priorities are today and in the future", says psychologist Margie Ireland.

"Goals are like our compass. Without a compass, we tend to float about and sometimes come to shore, but often not in our desired location," she says in her new book, The Happy Healthy Leader.

"Setting a course is therefore important if you have a destination in mind..."