3 business goals

BUSINESS GOALS
09/24/13 nsserwanga@yahoo.com

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 intent
2. 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 narrow
v. 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
09/24/13 eabaho@mubs.ac.ug, 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 performance
2. Values/briefs of top management to establish a
vertical fit with them
3. The relevant opportunities and threats
4. The relevant strengths and weaknesses
5. 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
09/24/13
nsserwanga@yahoo.com

Steps involved in MBO
1. Central goal setting
2. 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
09/24/13 eabaho@mubs.ac.ug, 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

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3 business goals