The objectives of a company are those steps to follow to achieve the goals, through certain defined strategies. Without perfectly clear objectives, well differentiated from strategies and goals, it will be difficult for a company to clearly navigate the constant challenges that are currently experienced.
What are the objectives of a company?
It is understood to objectives of a company such as the states you want to achieve, or within a certain period, to achieve key goals.
The objectives, taken together, form goals. And how are they obtained? Through the resources that the organization has, such as money, collaborators and other assets.
According to Harold Koontz, a respected American organizational theorist, the objectives of companies are those material things, or economic, social and commercial ends, that concentrate the attention and energy of the organization. They allocate their resources to them.
Why are they looking for them? Koontz concluded that these objectives mean profits for companies; profitability, social responsibility, reputation and, in general, good customer perception.
Why have a goal?
The objectives of a company must be clear in order to clearly diagnose the situation in which it finds itself, the subjects in which it has pending accounts and those in which it is better positioned.
The objectives of a company serve for organizations to know where they stand and what elements they have to move towards the paths outlined.
Objective, strategy and goal, what are the differences?
Objectives should not be confused with goals, much less with strategies.
Several fulfilled objectives will lead companies to achieve their goals and all this through strategies and methodologies.
While the goals could take the entire life of the company to achieve, the objectives are set with a better perspective of what is needed and what is available within the organization for its fulfillment, on a smaller scale, one could say.
Characteristics of the objectives in a company
The objectives of the companies have to be very clear. No ambiguity should be allowed in their layout, since if this is the case, the results and the measurement will be blurred. Some essential characteristics to set objectives in a company are:
- quantifiable
- With established deadlines
- realistic
- specific
- Generate improvements
- well connected
We explain these features below.
quantifiable
Defining perfectly tangible objectives will make their measurement easier, improving the perception and resulting interpretation of the information obtained.
It is not acceptable to say “I want to sell more”, but it is necessary to be much clearer: “I want to sell 8% more compared to the previous month”, for example.
With established deadlines
The objectives should have a well stipulated period of time, which will help to know if the progress is in line with what was forecast, if more time will be required or something similar.
realistic
It is very important, 100% necessary, to be realistic when setting the objectives of a company. To comply with this characteristic, it is necessary to have a very specific overview of the resources available to the company and thus set objectives from a feasible perspective.
If the goals are not realistic, the frustrations and poor results will accumulate until they are unsustainable.
specific
A company’s goals must also be very specific. The more clarity there is in their definition, the easier it will be to determine what is needed to achieve them.
Back to the example of improving sales; Growing a specific percentage will be very helpful, and specifying how to reach that company goal is even better. An example in this case would be, among many options, opening to expand the acquisition of new customers.
Generate improvements
The objectives must always present an advance, a development in the company, its procedures or its results. An objective that poses the same conditions in which the company is currently in, in the short or medium term, will be of no use. Therefore, they should always look forward.
well connected
The objectives of a company must be perfectly explained to all members of the company. If everyone within the organization is aware of the objectives and the ways to reach them, their fulfillment can be facilitated.
Types of objectives in a company
There are different ways in which we can organize the objectives of a company. They can be differentiated by the time they will take to complete, by their nature, by the priority they are given in the outlined scheme and more.
These are the most common types of business objectives:
- General objectives
- Auxiliary Objectives
- short term goals
- Medium-term goals
- Long-term goals
- OKR’s
Let’s look at each of them in detail below.
General objectives
This type of objective poses a whole strategy or methodology. They are long-term and require a lot of clarity in order to be well communicated effectively and for everyone to be aligned with them to achieve compliance.
These objectives must be drawn in parallel to the vision of the organization.
Auxiliary Objectives
Ancillary goals are the small victories that will bring us closer to meeting the overall goals. They tackle a much smaller situation or with a narrower focus. They are more direct and easier to execute.
short term goals
These goals are achievable or achievable almost immediately. The recommendation is that if you are a large company, these objectives can be set for one or two months. If you have a business or an SME these lines can be drawn to six months.
Medium-term goals
Also known as tactical objectives, they are all those things that, although they cannot be achieved immediately, are within the reach of the company with a constant and well-directed effort.
Long-term goals
These types of goals take more time to achieve. They can take years (more than five) to implement, and are generally based on both medium and short-range objectives.
Without the bases, nor the small advances that represent the objectives of shorter forecast time, the long-awaited ones could never be closed.
OKR’s
If innovative productivity strategies and systems that optimize the path to company goals are your thing, OKRs are high on your agenda.
A is a work management methodology that focuses on setting goals and generating key results on the way to goals. It is about joining the objectives, grouping the internal work of the organizations, to thus contribute -directly- to the business growth strategy.
Defining and complying with them will be essential to give structure and clarity to the growth and development plans of companies.
Objectives of a company: examples to inspire you
As we have already seen, there are different types of objectives of a company, differentiated by the time they could take and other characteristics. To give you more concrete ideas, let’s look at some examples of business goals that could motivate you to define your own.
Short-term objectives of a company: examples
All those objectives that are achievable or executable immediately.
1. Improve customer service by shortening response times by 40%.
Training staff and executing better customer service can be almost immediate, as well as the results it can have for the organization.
2. Generate offers and promotions that attract 30% more new buyers.
Any plan that is executable from one day to the next, aimed at attracting new or more customers, could be considered a strategy with a short-term objective.
3. Join Instagram and gain 300 followers in a month.
Among so many social networks, it is suddenly difficult to decide which one to venture into, but using these digital tools for brand exposure or growth purposes can mean a short-term goal.
Medium-term objectives of a company: examples
This category includes those objectives that will not be achieved immediately, but that do not require years to materialize.
1. Double my number of followers on a social network in a given time.
Again with digital strategies. Doubling your number of followers on some social network will not be possible in a few days, but with an organic growth strategy, guidelines, better content and other features, the followers will surely start to increase.
2. Define two customer profiles to capture more potential stakeholders
Focusing on a certain customer profile will align a company’s decisions in the same direction. In the medium term, this will help attract potential customers and improve brand perception.
3. Update the image of the company through a professional branding agency.
A plan that includes a new image for your company, with strategies for your main page, the dress of your social networks and perhaps new boxes or illustrations for your packaging. This would have a great impact on the brand perception of your business and, after planning it, you should not need much time to execute it.
You might be interested…
Article
Long-term goals of a company: examples
These are objectives with a greater preparation time required. They contemplate scenarios that at first might sound unattainable, but with perseverance and work based on medium and short-term objectives, they can become a reality. Sometimes they can be related to .
1. Position my own brand
Suppose you have a business in which you only sell products from other brands, you market clothing or food brands that are not yours, that you only distribute but your dream is -someday- to sell your own exclusive brand.
That’s a long-term goal, where you know what you have.
2. Expand my business throughout Latin America
Overcoming borders is one of the most repeated long-term goals among entrepreneurs and businessmen. Having a presence throughout the region is a good example of this type of objective.
3. Turn my company into a national benchmark
One thing is to arrive, the other to stand out. One of the most repeated long-term goals is, at a national level, to become a benchmark within the field of action of your company.
This would allow an expansion to other markets, as well as the necessary stability to draw more and better objectives from a more comfortable position.
You might be interested…
Article
Summary
This tour ended with the definition and importance of objectives. Now let’s do a…
Facebook Comments
Disqus