3 business goals

BUSINESS GOALS

04/07/23 [email protected]

Where do we want to be/achieve?

• This question is answered by setting goals and objectives (desired end results to be achieve at different organizational levels and times)

• This include your strategic vision/intent, mission/mission statement to guide competitive decision making, good hierachical objectives


Arrangement of these business goals/purposes

• Whether in a strategic plan or business plan or marketing plan, the generally accepted arrangement is as follows;

1. Vision -Ambitious firms follow it with the strategic intent2. Mission -Sometimes accompanied with the company’s

purpose/mandate, core values/shared values, and product/service portfolio to be offered


Cont-3. Strategic goals or objectives

-These are long-term(3-5years) objectives set by top management, are broad/generalized/less detailed to allow flexibility at the different parts and levels of the organization that they affect.-They are usually not SMART enough.-Are sometimes accompanied by SBU/Divisional/branch objectives especially for already existing large organizations or firms


Cont-

4. Tactical goals and/or objectives-Mid-term (2-3years)objectives usually set at the departmental level-Not so generalized, they more SMART compared to strategic goals-The decisions and actions (strategies) to achieve them are semi-structured


Cont-5. Operational objectives

-Short –term( up to 1year)objectives set by low level/line managers such as supervisors and affect day-to-day activities-Must strictly be SMART because they are for implementing the above objectives-Are achieve through structured decisions and actions (strategies and tactics)


Note• The first step in defining the firm’s strategic direction is to re-

determine/determine the kind of business it is in.• This enables the company to set its strategic orientation in

terms its current and future customers, their needs and expectations you/are to satisfy, and its fundamental unique way of satisfying them in light of our dynamic environment.

• This enables better definition/re-definition of the company’s vision and mission (if necessary), the consistent formulation of goals and objectives, and crafting of the right consistent strategies at different levels of the organizational hierarchy.


Their definitions, characteristics/features, and why we need them in business

• Generally;1. All these goals (vision, mission, and

objectives) are desired end results that an organization wants to achieve

2. They should be clearly understood/shared, accepted, and seen as beneficial to the relevant-key stakeholders especially the employees


Cont-

3. These goals are needed to provide the company/organization with competitive sense of direction towards which all management/staff activities and efforts should be focused or committed

In order to strategically/competitively achieve these goals, participatory approaches like MBO are recommended.


1) Vision• Strategic vision –The long-term business course. It is

a guiding concept/motivating dream of what the organization is trying to do and to become in the long-term.

It is a ‘big picture’ perspective (dream) of the ‘star’ that the organization wants to become in the long run.

It shows where the organization is heading (the big picture painted about the desired future position created by top management into the minds of all your stakeholders of what we aiming to become in 5-20years )


Characteristics of an effective vision

• It should motivate your stakeholders to devote their efforts towards achieving it. Otherwise enhance it with your ‘strategic intent’

• Clearly understood/shared by your employees and other stakeholders

• Precise and concise , easy to be recited by your key stakeholders

• Not usually achieved, it is brought to reality by the mission statement


Its benefits• To motivate people’s efforts towards a common

desired/leading place in the firm’s competitive environment

• To create synergy due to the common desired strategic direction, that is why an effective vision should in terms of ‘shared vision’

• It (its related strategic intent) makes people dream more, create and innovate more, be more committed, and work more to achieve that ‘star dream’

• Task-Brain storm others


2) Mission

• Definition-is a fundamental unique aim or purpose for an organization’s/a firm’s existence that sets it apart from others of its kind.

• It shows the world the unique reason why you are in business, in terms of the unique nature of business you are pursuing.


Definition cont-

• Defines the firms major/target industry scope, market scope, geographical scope

• An invisible or common thread that positively sells the company to its external customers/markets ,and holds all internal parts( especially the human assets) of the company together by way of consistently guiding their decisions and actions

• Defined in terms of the customers to be served, needs to satisfied, and the unique way of achieving this.


Characteristics of a good mission

i. It should clearly define the firm’s business in its environment

ii. It should positively sell the company to its customers,employees,and publics

iii. It should act as an ‘invisible hand or thread’ that competitively guides/holds all parts of the organization together (perspective). Promote teamwork focusing competitiveness.


Cont-

iv. Not too broad or too narrowv. Should reflect the firm’s fundamental uniqueness

which motivates all those concerned.vi. Should not be a ‘mere nice statement’ which your

staff will/do not follow. It should be shared/understood, accepted, and acted upon by your key stakeholders


Why it is needed

• To show how the company uniquely fulfills its purpose for existence by reflecting the company’s core perspective/philosophy (core values) to its internal and external customers.

• To make the firm or organization to be acceptable among its publics especially its target customers (corporate image).

• To consistently guide the firm’s strategic direction in relation to its present and future customers,markets,and competitiveness.


Cont-

• To guide the consistent formulation of your objectives, the strategies to achieve them, and how to put these strategies into action.

• It acts as a rallying point hence maintaining a competitive sense of direction


3)Business objectives-definition/meaning

• Objectives are desired end-results that the organization is aiming to achieve through its existence and what it does in terms of organizing, coordinating,leading,and controlling activities.

• Objectives are specific aims that the organization has decided to achieve.


Characteristics of generally good objectives-We set several objectives.

• Should be clearly understood and accepted by key stakeholders

• Should be set in line with the company’s mission statement, strategic intent, and core competence

• Should be relevant to the firm’s external and internal environment

• Especially the operational level objectives should be SMART• Set through and managed by MBO• Be hierarchical, measurable, relevant, and consistent

04/07/23 [email protected], 0782672898

Benefits of having good objectives

• Organizational members become goal focused/ focused to the right objectives (specific aims)

• They give a sense of achievement of common desired ends towards which all management and staff functions/activities should be directed.


To set the right mission/objectives

• Consider;1. Past company history-Past mission and

objectives ,and past performance2. Values/briefs of top management to establish a

vertical fit with them3. The relevant opportunities and threats4. The relevant strengths and weaknesses5. The companies core competence, mission

statement, and strategic vision or intent


MBO

• A consistent cycle of clearly accepted procedures of involving all organizational members in the achievement of common organizational goals and objective

• Aimed at ensuring commitment/ a goal contract (especially the unwritten goal contract) among all managers (and staff) concerned in the different functional areas and at the different levels of the entire enterprise


MBO-cont

• Also aimed at tapping the creativity and innovativeness, facit knowledge, experience, and other latent competences

• Effective communication, team work, motivation/encouragement/mentoring from the managers, recognizing and rewarding excellent performance KSFs are necessary for MBO to succeed


Steps involved in MBO

1. Central goal setting2. Goal/objectives setting of individual departmental

and operational level- through productive/effective meetings

3. Agreeing on how these objectives are to be achieved

4. Giving them autonomy to achieve (to tap their hidden competences) those agreed upon objectives


Cont-

5. Clearly explaining how their performance is to contribute to the accomplishment of the overall company objectives

6. Measure their performance, identify the deviations, and why the results are that way

7. Reward performers, encourage and train those trainable non-performers

04/07/23 [email protected], 0782672898

Tasks/Assignment

• Brainstorm -the Merits and Demerits of MBO• Using a business/company of your choice,

design a good vision & mission and good hierarchical objectives clearly reflecting your desired strategic direction.


3 business goals

Business

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