How To Set Business Goals and Objectives Effectively
When was the last time you had an ‘A-ha!’ moment? It’s common to experience great clarity after exploring possibilities, talking to people about them, and then stepping back. You could go for a walk around the block, join a dinner party with friends, or take a shower, and suddenly…BOOM! A great business idea pops into your head! What you decide to do next is crucial: if you want your business idea to thrive, you want to write it down and start building a structure for the next steps.
In the book “Insight Out — Get Ideas Out of Your Head and Into the World,” best-selling author and Ph.D. in neuroscience from Stanford University, Tina Seelig breaks the process down into ten steps:
- Setting goals
- Identifying opportunities
- Envisioning the future
- Unlocking motivation
- Experimenting
- Focusing
- Reframing
- Persisting
- Inspiring others
- Review attitudes and actions
In this article, we will focus on how to set goals and identify opportunities or objectives for your business. Ready? Let’s dive in!
What is a business objective?
Every business should have a reason to exist, which is usually described in its mission statement. A company might be solving a problem by offering a solution either as a service or product for a specific customer. A business objective is a result of what the company aims to achieve in a short period. As the company grows, it’s critical to track the business objectives by defining specific and measurable goals, or as Seelig says, “
In her research, Seelig identified patterns in the path of entrepreneurs and innovators: successful business owners “know how to take steps that are large enough to be challenging, but small enough that they lead manageably toward the objectives.” On the other hand, entrepreneurs who don’t pace themselves properly fall out into two fates: “They take tiny steps that are low risk, but that don’t take them very far, or they take huge steps that are beyond their ability, and they inevitably stumble,” explained Tina Seeling in an interview to Stanford News.
Just like a GPS gives directions and informs speed limits and alerts closed roads, a business plan orients managers and their teams on which steps and routes to take on the path to success. When writing a business plan it is essential to understand what business objectives and goals are and how to define them. A business plan specialist can provide valuable expertise in the process if you need additional guidance to craft the perfect plan.
What is a business goal?
A business goal can be defined as the hopes and expectations of a company overall. For example, most businesses have the goal to be profitable, which generally means increasing revenue while limiting expenses. A business goal is usually identified in the company’s vision statement. Its definition captures the larger, aspirational ambition of the business.
What’s the difference between objectives and goals?
Objectives and goals differ from one another, mainly in their relationship with time. And although different, these words are often used interchangeably in project management. But when writing a business plan, it’s key to understand the characteristics of each:
- A business goal is an achievable long-term outcome that can be intangible and non-measurable.
- A business objective is an accomplishment in the short run and can be measured in small actions toward a broader goal.
In the early 70s, pioneer researchers of motivation in the workplace, Edwin A. Locke and Gary Latham, introduced a theoretical approach to setting goals. “Goals are effective because they give people direction, they increase effort and persistence, and they cue people on strategies to attain them,” as they explain in their research.
Locke and Latham suggest having clarity and focus when defining objectives. They also reinforce the importance of commitment and teamwork while encouraging feedback and evaluating the progress of the goal. “The higher the goal, the higher the performance, given ability, commitment, feedback, and resources,” support the authors.
Here are some examples of business goals and objectives:
Goal: To provide outstanding customer service.
Objective: Respond to all customer inquiries in less than 24 hours.
Goal: Become a reference and leader in your industry.
Objective: Win at least five excellence awards a year.
Goal: Offer a positive work environment for employees.
Objective: Reduce employee turnover and increase satisfaction.
There are at least six types of goals: process-based, outcome-based, learning-based, quantitative-based, qualitative-based, and time-based. Each one of them requires a different set of objectives and measuring frameworks.
How can you track objectives and measure success?
Defining SMART objectives (Specific, Measurable, Achievable, Relevant, and Time-bound) from the get-go of any project helps us stay on the right path toward success. When setting work goals, having open and flexible communication is key, especially in an ever-changing hybrid work environment. Consider offering different business communication lines to enhance collaboration with your team. Voice chat, for example, is one of the most promising for saving time and facilitating decision-making while empowering community building.
Pro-tip: Hive Voice Chat is an excellent choice for teams to communicate effectively and timely while setting business goals and objectives.
Project management software such as Hive can also help you better plan and execute a company’s initiatives. Hive is the only project management platform for hybrid work shaped by its users. Understanding that projects vary in complexity, Hive designed a platform that offers complete visibility over actions, deadlines, and other crucial project details. With six different layout views, you can choose a display view that suits each individual project in the best way.
- Gantt View — for visualizing complex timelines.
Map out project timelines, track baselines, and execute comprehensive plans. Quickly understand how your team is pacing and who is responsible for which tasks.
- Kanban View — to track actions over time.
Utilize Kanban view to understand action progress and visualize initiative progress. Drag and drop tasks to mark them as In Progress, Completed, or Unstarted.
- Table View — a traditional Excel-like snapshot.
Lay out actions in Table view to easily sort and filter them according to needs and preferences. Columns can be re-arranged or toggled on and off according to your preferences.
- Calendar View — map deadlines on a calendar.
Visualize all the actions in your project organized by the deadline. Simply drag and drop to change an action’s deadline. The default view shows all actions due for the next six weeks.
- Portfolio View — consolidate project and action progress.
Get a birds-eye-view of actions and tasks across projects. Add projects, actions, and custom fields to your Portfolio view to fully customize it.
Other tools Hive offers to help reach goals and objectives:
- My Actions — your personal to-do list.
All the actions assigned to you are grouped neatly into one easily accessible view. Quick-click into each action to view the description, specifics, and any other relevant information.
- Hive Analytics — drill into the metrics that matter to you.
Create dashboards that reveal essential performance metrics to you. Hive Analytics includes four sections: overview, overdue actions, actions due (timeframe), and actions completed (timeframe). You can use filters to spot the key indicators of your team’s needs and assign the visibility of your reports, guaranteeing that only authorized departments have access to it. Hive Analytics also lets you export an entire dashboard as a PDF or an image.
Now that you understand the importance and differences between business goals and objectives, it’s time to put your new knowledge to use! Use Hive’s Strategic Planning Template and get to work!
