After the idea for a new business arises, you have to think about how to make it a reality, make it work and sustain it over time. It is important that you propose a strategy and that you set business objectives: the roadmap that will mark your path and on which you can evaluate the company itself. In this article we want to analyze how to define business objectives and give you some guidelines on how to achieve it.
Business objectives: define your strategy
Business objectives are defined by virtue of the mission and vision of the business itself, concepts that also have to be previously defined: they are essential to found the organization and for the creation of a company.
Defined objectives allow, subsequently, to be able to evaluate performance in different areas and to be able to take corrective measures or redefine strategies . Defining an objective is asking yourself about the purpose you want to achieve and aligning yourself with a strategy about how to achieve it.
The business objectives:
- They focus effort on a definite achievement.
- They must be known by all members of the company and shared to unify your organization.
- Poorly defined business objectives can take you away from your goal and lead to losses.
What are the characteristics of the business objectives?
There are a number of conditions on which we can outline the business objectives. As can be seen, business objectives must above all be palpable and present on the day of the company as a guide and reference.
The concept in English of SMART objective (Specific, Measurable, Achievable, Realistic, Timely) perfectly defines how the business objectives should be defined:
- S Specific
- M Measurable
- To Achievable
- R Realistic
- T Timely
Goals that can be measured
If the business objectives cannot be measured in some way, they lose all their meaning as a tool to success. For this reason, they must be precisely defined objectives.
Possible and achievable goals
The objectives must be realistic: if the goal is impossible to achieve, it will generate frustration in the teams. It is important so that the gear works and that there are no factors that make you lose interest or motivation.
Objectives defined in a concrete way
A business objective cannot be vague or diffuse. In the business world, abstraction is not valid: if the objectives are understandable, you will be able to transmit and communicate them.
In the same way that business objectives must be achievable and possible, they must also pose a challenge that involves effort, knowing where to start and how far you want to go.
All members of the organization must know the business objectives. We must bet on the training of the workforce and on the periodic review of these objectives.
How can you achieve your business goals?
When defining business objectives, you must take into account several subtasks or subcharacteristics that you will have to define as a plan and part of the strategy.
- Definition of the completion period : it is important to have an execution date set where the exact duration of the period is established. This will be the time frame where the objective will work.
- Define the actions or tasks: the objective must be broken down into tasks to be carried out.
- Assign tasks and responsibilities : each task has to be the responsibility of someone on the team.
- Budget and resources : the costs and materials that will be needed must be established.
- The objective : the exact and precise definition of the result of the actions that are proposed will reveal to us whether or not we have achieved the objective.
Tools can be used that allow us to measure the achievements that are happening, the completion of each subtask and the steps that are taken. Monitoring the data through software or with a simple spreadsheet is very useful and very revealing.
From general objectives to operational objectives
There are different types of business objective. There are general ones , whose goal is wide-ranging, and there are also long-term ones, which constitute the true strategy of the company. There are also daily, short-term objectives that have to do with the operation of the business itself.
The success and achievement of objectives largely depend on a good definition of business objectives. Remember that they must be realistic and achievable and be known by everyone who is part of the organization. The goal is just a few steps away, but you must draw each of the steps!