All business It has its objectives: the set of short, medium and long-term goals that the organization has set for itself and that somehow mark the way forward and future steps. For example: exceed the stipulated annual sales margin by at least 50%.
These business objectives are set in line with the Mission and vision of the company, so that they constitute a priority element when conceptualizing, designing or creating a human organization.
In fact, correctly setting out the objectives of the company allows evaluate to a better extent its performance, to determine how closely it resembles what was initially assumed, or to calculate what strategic plans should be undertaken for the future.
In this sense, business objectives are part of the most basic elements of the organization and respond in one way or another to the question What is our purpose? OR What do we want to achieve with all this?
On the other hand, some well defined objectives They allow energy to be concentrated (synergy) in the achievement of a goal, while unclear objectives disperse energy and cause unnecessary costs and delays. An organization, then, whose workers know the proposed objectives well, will be a more cohesive organization and with less uncertainty than in the opposite case.
Characteristics of the objectives of a company
The objectives of a company should ideally meet the following conditions:
- Measurable. The objectives must be measurable, and measure how close the company is to achieving them. This requires a certain degree of precision and specificity when proposing them, since otherwise it would not be possible to know if the direction taken is the correct one.
- Achievable. The objectives cannot be impossible. Simple as that. An unattainable set of objectives generates discouragement, dissatisfaction and apathy in the collective of workers, since their efforts will never be rewarded with success.
- They cannot be abstract, undefined, more or less understandableInstead, they must be clear and concise, direct, otherwise it will be difficult to transmit them and make them known to those involved. For the rest, how do we know how close we are to achieving it, if we do not know very well what we are looking for?
- They cannot contradict each other or themselves, nor can they be absurd or illogical. Nothing with these characteristics can guide a human endeavor to success.
- They must challenge the company and require effort, growth and tenacity, but always from a realistic perspective, which takes into account the contexts and needs. Otherwise you are simply dreaming.
- They must be understood by everyone involved in the company, without exception, since it will depend on it that all the efforts of the staff point in the same direction.
Types of objectives
According to the nature of what they pursue or the importance that this has within the central plan of the company, the objectives may be classified as:
- General objectives. They pose the goal to be achieved in a global and generic way, as in a panoramic and large-scale vision.
- Specific objectives. They address the desired reality from a much smaller and more focused scale, more specific than the general ones. A general objective usually implies a number of specific ones for its realization.
- Long-term or strategic goals. Those who will take the life of the company obtain.
- Medium-term or tactical objectives. Those that are impossible in the short term, but with a sustained effort over time can become reality without having to wait a lifetime.
- Short-term or operational objectives. Those that are more or less immediately achievable.
Examples of company objectives
General objectives
- To become one of the leading brands in the national market in the field.
- Exceed the stipulated annual sales margin by at least 50%.
- Establish a niche for international consumption in an incipient market.
- Exceed the competition in visibility and sales within the online market of the national and international branch.
- Impose a new, profitable and environmentally friendly consumer trend.
- Establish in the international market and open branches in the main cities of the world.
- Make the production model profitable until it becomes an autonomous system.
- Increase the annual revenue margin responsibly and proactively.
- Become the highest and most responsible employer in the country and impose a culture of honesty and work among employees.
- Offer healthy and respectful consumption alternatives in the midst of the overwhelming fast food market.
Specific objectives
- Grow at least 70% in your net profits without incurring layoffs.
- Entering into online sales with a sustainable margin of success.
- Minimize wasteful spending and cut the deficit by at least 40%.
- Increase the permanent staff hired and expand existing coordination at the regional level.
- Encourage a culture of growth, savings and education among employees in a sustained manner.
- Increase the percentage of sales abroad by at least 30% in the next semester.
- Prepare finance and collections departments for the annual audit with as little room for irregularities as possible.
- Increase the general salary payment by 20% without affecting the company’s safe net profit margins.
- Make visible the efforts in the area of Corporate Social Responsibility carried out during the past year.
- Design a new business structure that allows the expansion of the company after its change of directive.