Creation of goals system

Creation of goals system
See also
Decision types in business Forms of advertising Mission and vision Objectives of the organization Implementation of strategy Methodology for strategy definition Principles and features of organizational structure Nature of strategic management Strategic goals

The system of goals design include the following steps:

• Formulation of objectives,
• Prioritizing of objectives,
• Selection of objectives,
• Classification of objectives.

Formulating objectives

We can distinguish economic objectives, which relate to efficiency and non-economic objectives (e.g., organizational, intellectual, research, environmental, political, etc.). They should be focused on meeting the needs and expectations of the company and customers. The objectives can be formulated objectively (e.g., to achieve the desired state) or functionally (e.g., manufacture of products). Objectives should be relevant, quantified, acceptable, reasonable and time oriented.

Prioritizing objectives

Prioritizing objectives leads to determining their value on various levels: strategic, tactical, operational or in management system configuration.

They can be serialized in common mode (based on statistics) or individual mode (evaluation of each company takes into account its vision, mission and external environment).

Selection of objectives

Adequate selection criteria should be adopted. They may be:

• System of values,
• General preferences, as defined by the basic strategies,
• External and internal conditions of the company,
• Time perspective,
• Risk

In practice, these criteria must be particularized and applied together. This allows a comprehensive analysis of the system of objectives and thereby make the right decisions.

Classification of objectives

As a result of this step, managers create the classification of the objectives in form of objective tree, starting from general to specific objectives. The classification role is to arrange and group objectives and shape organizational structure based on them. When objectives are related to individual organizational units, they become tasks.

See also:

• Classification of goals and functions
• Knowledge gap strategy

References

• Regnér, P. (2003). Strategy creation in the periphery: Inductive versus deductive strategy making. Journal of Management Studies, 40(1), 57-82.