Setting Goals – Value and Objectives

The Role of Goals and Objectives

Once you have developed your vision,  mission and core values, you can then develop the goals and objectives needed  to achieve your vision.

Goals – Goals are  general statements of what you want to achieve. So they need to be integrated  with your vision. They also need to be integrated with your mission of how you  are going to achieve your vision. Examples of company goals are:

  • To improve profitability
  • To increase efficiency
  • To capture a bigger market share
  • To provide better customer service
  • To improve employee training
  • To reduce carbon emissions

A goal should meet the following criteria:

  •   Suitable: Does it fit with the vision and mission?
  •   Acceptable: Does it fit with the values of the company and the employees?  • Understandable: Is it stated simply and  easy to understand?
  •   Flexible: Can it be adapted and changed as needed?

Make sure the goals are focused on the  important properties of the business. Be careful not to set too many goals. You  run the risk of losing focus. Also, design your goals so that they don’t  contradict and interfere with each other.

Objectives – Objectives are specific, quantifiable, time-sensitive statements of what is  going to be achieved and when it will be achieved. They are milestones along  the path of achieving your goals. Examples of company objectives are:

  •   To earn at least a 20 percent after-tax rate of return on our net investment  during the next fiscal year
  •   To increase market share by 10 percent over the next three years.
  •   To lower operating costs by 15 percent over the next two years by improving the  efficiency of the manufacturing process.
  •   To reduce the call-back time of customers inquiries and questions to no more  than four hours.

Objectives should meet the following  criteria:

  • Measurable: What will happen and when?
  • Suitable: Does it fit as a measurement for achieving the goal?
  • Feasible: Is it possible to achieve?
  • Commitment: Are people committed to achieving the objective?
  • Ownership: Are the people responsible  for achieving the objective included in the objective-setting process?

Types of Goals and Objectives

Most  business goals fall into one of four categories. A variety of objectives can be constructed to  meet the goal in each category. Examples are given below. Each of the  objectives should be described with a quantifiable outcome to be achieved by a  predetermined deadline.

DEFINE THE FUNDAMENTAL VALUES BY WHICH YOU WILL RUN YOUR BUSINESS

Arguments often occur because members don’t share same values-identifying values before will avoid future arguments

 

STEP 1: Each member should define he/his personal values

STEP 2: Consolidate the common values by which business will be operated

 

example: In conducting our business, we will implement our vision by conducting our affairs so that our actions provide evidence of the high value we place on:
INTEGRITY by dealing honestly with our customers, employees, suppliers and the community
RESPONSIBILITY: by taking into account the environment in which we do business, community views and the common good
PROFITABILITY by being conscious that an appropriate level of profit is necessary to sustain the business and allow our values to continue to be observed
VALUE by providing quality products that deliver value for money
EMPLOYEES by providing quality equitable opportunities for development in a healthy workplace with appropriate rewards.

SET CLEAR AND SPECIFIC OBJECTIVES

  • to provide you with a yardstick to measure your ability to achieve your vision-measurable targets that can help you achieve the mission of your business
  • usually objectives relate to: return on investment, market position/market share, projected stages of technological development, levels of financial performance
    To Be Effective an objective should:

    • refer to a specific outcome not an activity
    • be measurable
    • be realistic and achievable based on actual capabilities of the business
    • contain a specific time deadline

Source: Iastate, Indirect

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