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Goal selection the key to success

Written by: Devang Jhaveri

Article Overview: Once an organization has decided what business it is in, it can focus on its goals, aims, and objectives. In contrast to a mission statement, corporate or business objectives are precise statement of intent which emphasized the aims and goals of an organizations. In this article we describe what is Goal,How to create company goals and objectives,characteristics of good goals and Comparison of team with goal and without goals.

Goal selection the key to success

1.0 General:
Once an organization has decided what business it is in, it can focus on its goals, aims, and objectives. In contrast to a mission statement, corporate or business objectives are precise statement of intent which emphasized the aims and goals of an organizations.
1.1 What is Goals?
Goals:
 Define the key areas in which to expect strategic results and what is expected.
 Not measurable as stated, but contain factors that will be measurable as Objectives.
 With Mission and SEPs determine what Objectives should be selected.
Goals represent where the leadership team wants the business to go; they are the aspirations, realistic aspirations, for the future.
For most strategic business plans five types of goal are used in the framework: distinctive capability, market/product/service, Identity, people and efficiency. For the ready reference of readers the difference between team with goal and without goal is given in table-1

1.1.1 Distinctive capability:
The combination of business processes, attributes and competencies that distinguishes the company and creates competitive advantage. It will also enable it to seize the opportunities that arise in the future that match its strategic direction.
This goal answers the question: “ what business or organizational capability exists or can be created in the next three to six years that is superior to any competitor’s and will enable us to attain a significant competitive advantage in our chosen markets? This goal is the most difficult goal to develop. It usually takes two or three times as long to determine as the other goals.
The key to developing the distinctive capability is to understand and develop a clear business model. Once this is complete it becomes clear what capability is required to create sustainable competitive advantages, and this, together with an understanding of the current major strategic strengths, will indicate the area where the company has to create the distinctive capability.
1.1.2 Market / product / service
The focus of application for the skills and competencies of the company.
Market /product/ service defines the markets on which the business will focus and the products or services it will supply.
This goal defines the markets the company will operate in, and the products and services it will sell in those markets. It both describes this business domain and explains why it is attractive to the company.
For example, when Philip Morris acquired 7 up, the soft drinks company, it looked like a good strategic match. They had built the largest selling cigarette brand in the world with Marlboro, taken miller from seventh position to second in the US brewing league, and so could really claim to understand consumer good marketing. Philip Morris’s skill lay in transplanting the brand marketing ability they had developed with their cigarettes and beers to the package food business.
The market / product / service goal defines the markets that the company understands and wants to continue in, and the adjacent or new markets it wants to expands into.
Market / product development chart:
In developing the market /product / services goal the leadership team and / or the marketing / sales group will have undertaken a number of exercises. They will have.
 Analyze the market in term of its end users, trends and drivers
 Analyzed the market attractiveness in relation to your company strengths.
 Considered the breadth of your offering in terms of market and product
 Compared your strategic position to that of your competitors
 Analyzed your total range to ensure that it makes sense to your potential customers.
 Broken down your market/ product offering in to its smallest practical segments
 Analyzed the customers for each segment in terms of their buying values and potential discriminators.
1.1.2.1. Identity expresses how the business will be recognized and thought of by customers, employees and all the audiences it wants to influence.
The identity is concern with how the company is marketed. It is the image of the company that you want in the customer’s mind. A good reputation and a clear image of what the company represents to customers is worth a fortune in future business.
Communicating a clear positive perception and image of the company to each of the audiences who are important to its future well-being.
The identity that a company or brand holds is easy to check with well-known names. Ford has been promoting the safety features of the Taurus, showing how a parent cares for the family through driving a safe vehicle.
1.1.2.2. People: The goals will only be achieved through the efforts of people. Execution is through organization and its people: they must know what is expected of them and how their behavior and the culture they help create is essential to the strategy implementation. The people goal might be called software side of the distinctive capability goal. It represents the organization’s shared values, the behaviors that will be required, and the organization structure that will deliver the strategy, the culture that makes it live.
Organizing the skills and competencies of the company to meet the needs of the customers both now and in the future.
The advantage of having business values that are recognized as being strong is that customers are increasingly buying a reputation rather than a product.
The people goal, therefore, deals with the organization structure of a company, its values, as expressed in its standards and behaviors and its relationship with people, both employees and others.
1.1.2.3. Efficiency determines how the business will perform operationally.
Ensuring the business is focused on the correct activities is run as efficiently as any competitor and fully exploits the potential of e commerce.
Strategy is a marathon, not a 100-meter dash, yet running at over 12 mph for 26 miles takes disciplined training, a tough mental attitude and a superb physique.
Efficiency became a key survival factor for most businesses, and a success factor for many companies. The Internet will now spur an even greater drive for efficiency. Customer can now browse the Internet to find the lowest price for a product or component.
The purpose of this goal is to ensure that efficiency is high on the agenda of all companies.
1.1.2.4.Suggested approach to improving efficiency:
 Review the efficiency survey and decide if and where the business needs to change.
 Develop a flowchart of the current business model.
 Decide on the areas that are critical – the fulcrum points that give real leverage –and review where improvements or total re-engineering might be appropriate.
 Review the areas, processes and functions where the greatest cost is incurred and explore all the cost reduction possibilities.
 Explore the potential internal impact of e- business on the company.
 Develop a new business model or models if / as appropriate.
1.1.2.5. Option: customizing the strategy to meet the special needs of an organization.
The optional goal:
For some companies there is a need to highlight a particular issue with an additional goal. Such issues may include safety and the environment. For many companies, especially in construction and heavy engineering, safety is an absolutely key issue. Achieving accident free operations makes both human and business good sense. Therefore many companies involved in dangerous activities develop a safety goal.
Let’s look at British Airway’s goals again:
 (To be) the customer’s choice-the airline of first choice in key markets.
 (To show) strong profitability –meeting investor’s expectations and securing the future;
 (To be) truly global –(with a) global network, global outlook: recognized every where for superior value in world travel;
 (To employ) inspired people –building on success and delighting customers.

Goals are based on judgments about the key success area over the next few years. Whereas missions are important in ensuring continuity of purpose over longer periods.

1.2 How do Create Company goals and objectives?
• Goals – broad, long-range attributes to be accomplished.
• Objectives – more detailed, specific targets of performance that are S.M.A.R.T.
Specific, Measurable, Attainable, Realistic (yet challenging), Timely
Types of goals:
1.2.1 Areas of Organizational Work
 Technology and operations
 Marketing
 Financial
1.2.2 Breadth
 Organization-wide
 Operational
1.2.3 Specificity
 Specific
 Directional
1.2.4 Time Frame
 Long term
 Short term
Criteria are the indicators of successful performance on the job. Good performance goals, objectives, and criteria are:
• Job related
• Challenging, but achievable
• Clearly communicated and mutually understood
• Specific and objective
• Time-oriented
• Written
• Subject to revision, as needed
1.3 Characteristics of Good Goals:
 Written in terms of outcomes rather than actions
 Measurable and quantifiable
 Clear as to a time frame
 Challenging yet attainable
 Written down
 Communicated to all organizational members

Table 1. Characteristics of Teams
Teams without Goals Teams with Goals
• Highly stressed - Competition is high. Individual achievement is all important.
• Error prone - Everyone tries harder and rushes faster, only to start again. Everyone is increasingly frustrated.
• NonCooperative - Helping someone else means they might get ahead. Everyone else is the enemy. Management likes the others better. It's only through shrewdness that anyone can beat the system and stay ahead. • Relaxed - No fear. Everyone knows what is going to happen.
• Right every time - Everyone knows what is expected and they become more proficient with increased satisfaction.
• Highly cooperative - Everyone is dependent upon the others in the team to get the job done right.
• Highly trusting - If everyone does his part, they will all be rewarded.
• High morale - Work is fun. Life is good. Everyone gets better all the time.
• Adjusted to the system - Everyone made the system work for them.
• Happy with management - Everyone likes management. Management treats them with respect and does not change the rules.

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Article Tags: aims and objectives, attributes, business model, business objectives, business processes, competencies, competitive advantage, competitor, efficiency, key areas, leadership team, mission statement, organizational capability, precise statement, ready reference, realistic aspirations, six years, statement of intent, sustainable competitive advantages, three times



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