Goals and objectives

Goals and objectives
See also
Strategy of the organization Goal achievement Types of objectives Classification of goals and functions Example of success Measurement of performance Short term planning Objective setting Strategic direction

Goals and objectives are short-term and long-term targets used by businesses to guide decision making, measure progress, and determine success. Goals are more broad and abstract in nature and are often overarching statements of what an organization wishes to achieve. Objectives, on the other hand, are specific, measurable, and observable targets that help an organization reach its goals. They are the steps taken to reach a goal and should be aligned with a timeline and resources. Goals and objectives are important for businesses because they help create a plan of action and ensure that the organization remains focused and productive.

Example of goals and objectives

• Goal: Increase customer satisfaction; Objective: Increase customer satisfaction ratings from 75% to 85% within the next 6 months by providing more personalized customer service.
• Goal: Increase revenue; Objective: Increase revenue by 10% within the next year by expanding into new markets and creating more products.
• Goal: Improve employee engagement; Objective: Improve employee engagement by 10% within the next 6 months by implementing more flexible scheduling and offering more professional development opportunities.

Formula of goals and objectives

The formula to determine a goal and its corresponding objectives is:

Goal = Measurable + Achievable + Relevant + Timely (MART)

Objectives = Specific + Measurable + Actionable + Realistic + Timely (SMART)

The MART formula is used to set a goal, which should be measurable, achievable, relevant, and timely. Measurable goals are those that can be quantified and tracked. Achievable goals are those that are attainable and within the organization's reach. Relevant goals are those that align with the company's mission and values. Timely goals are those that are set within a specific timeframe.

The SMART formula is used to set objectives, which should be specific, measurable, actionable, realistic, and timely. Specific objectives are those that are clear and well-defined. Measurable objectives are those that can be quantified and tracked. Actionable objectives are those that are actionable and achievable. Realistic objectives are those that are achievable within the organization's resources. Timely objectives are those that are set within a specific timeframe.

Using these formulas, organizations can create and track goals and objectives that are measurable, achievable, relevant, actionable, realistic, and timely. Doing so will help them remain focused and productive, and ensure that they are on track to achieving their desired goals.

When to use goals and objectives

Goals and objectives are important tools for businesses to use when setting and attaining goals. They provide structure and direction to the organization and provide a way to measure progress and success. Goals and objectives should be used when:

• Setting long-term strategies and goals: Goals and objectives provide businesses with a roadmap for success and help to ensure that the organization is moving in the right direction.
• Creating an action plan: Objectives provide a detailed plan of action that outlines the steps needed to achieve a goal and should also include a timeline and resources.
• Monitoring progress: Businesses can use goals and objectives to track their progress towards achieving their desired outcome.
• Evaluating success: Goals and objectives provide a metric for evaluating success and can be used to measure the effectiveness of an organization's efforts.
• Motivating employees: Goals and objectives can help to motivate employees and provide them with a sense of purpose.

Types of goals and objectives

Goals and objectives are essential for businesses to guide decision making, measure progress, and determine success. Below are some of the most common types of goals and objectives:

• Strategic goals: Strategic goals are long-term, overarching objectives that guide the trajectory of an organization. They are usually broad and abstract and can include goals such as “increase market share” or “improve customer satisfaction.”
• Operational goals: Operational goals are short-term objectives that are used to implement a strategy. They are usually more specific and measurable targets that can include goals such as “reduce costs by 5%” or “implement new technology.”
• Financial goals: Financial goals are objectives that focus on achieving financial targets. They can include goals such as “increase revenue by 10%” or “reduce expenses by 5%.”
• Social goals: Social goals are objectives that focus on the impact an organization has on society. They can include goals such as “reduce carbon emissions” or “increase access to education.”
• Personal goals: Personal goals are objectives that are set by individual employees. They can include goals such as “earn a promotion” or “improve public speaking skills.”

Steps of setting goals and objectives

A goal and objective setting process helps organizations plan for the future and measure progress towards their desired outcomes. The following are the steps to setting goals and objectives:

• Identify the desired outcome: The first step is to identify the desired end-result. This is the goal that the organization is striving to achieve.
• Break down the goal into objectives: The next step is to break down the goal into measurable objectives that will help the organization reach its goal. These objectives should be specific and realistic.
• Establish a timeline: Establishing a timeline for the objectives will help ensure that the organization remains focused and on track.
• Assign resources: The organization should assign resources to the objectives to help ensure they are achieved. This includes personnel, materials, and funding.
• Monitor progress: Regularly monitoring progress is key to ensuring that goals and objectives are achieved.
• Review and revise: Lastly, it is important to review and revise goals and objectives as needed to ensure that they remain relevant and achievable.

Limitations of goals and objectives

Goals and objectives are important for businesses because they help create a plan of action and ensure that the organization remains focused and productive. However, there are a few limitations to consider when setting goals and objectives. These include:

• Unclear objectives: If objectives are too vague or not specific enough, they can be difficult to measure and achieve.
• Unrealistic expectations: Setting unrealistic goals or objectives can lead to lower morale and performance.
• Poor communication: Without proper communication, the goals and objectives may not be understood correctly or shared across the organization.
• Lack of flexibility: Goals and objectives should be regularly reviewed and adjusted to reflect changes in the environment.
• Restricted creativity: Setting rigid goals and objectives can limit creativity and innovation.

Suggested literature

• Haughey, D. (2014). A brief history of SMART goals
• Sull, D., & Sull, C. (2018).With goals, FAST beats SMART. MIT Sloan Management Review, 59(4), 1-11.