CORPORATE OBJETIVES

Por María Victoria Retondaro Costaguta

After explaining the terms, vision, mission and values it is time to understand another factor: the objectives, just before getting in depth in strategy. The aforesaid expressions have a lot to do with companies having a great impact on their short and long term success, performances and processes.

It is important to link corporate objectives with mission and vision statements. This helps individuals to see the importance, relevance and value of objectives and tends therefore to reinforce commitment to achieving them.

Objectives are part of the planning process, basic tools that trigger all planning and strategic activities, specific results that a company or institution aim to achieve within a time frame and with available resources.Generally, objectives define what a company expects to achieve thru the year and are outlined in their business plans.

It can be confusing what a goal is and what is an objective. An aim is where the business wants to be in the future, its goals. Business objectives are the specified, measurable targets of how to achieve business aims.

Objectives give the business a clearly defined target; plans can then be made to achieve these targets. Business owners must share their objectives with the entire company so everyone can work in synch in accomplishing them.

Some benefits of having objectives stated are: motivate the employees; enables the business to measure the progress towards to its stated aims; companies that are successful in meeting goals and objectives can attract more investors or shareholders.

Having well developed goals and objectives also helps to:

- Maintain focus and perspective.

- Establish priorities.

- Lead to greater job satisfaction.

- Improve employee performance.

In order to be effective objectives must be written otherwise they are only ideas with no real power or conviction behind them. Besides, written objectives provide motivation to achieve them and are also a reminder.

Objectives should follow the rule SMART:  

 - S pecific: clearly state what is to be achieved

- M easurable: the desired outcome can be measured

- A ttainable: objectives should be realistic and achievable

- R ealistic: the target is possible given the market conditions and the staff and financial resources available

- T imed: the target will be met within a given period of time

Objectives are not fixed, they are flexible. Companies have different aims and goals that can change over time, in response to internal or external factors. Some reasons why a company may change its objectives over time are:

A business may achieve an objective and will need to move forwards to a new one.

The competitive environment might change.

Set Goals and Objectives in Your Business Plan.

Well-chosen goals and objectives point a new business in the right direction and keep an established company on the right track. In order to be effective is recommendable to employ some techniques to set goals:

Link goals to your mission.

When specifying goals and objectives a company must revise its mission statement. Using crucial phrases from the mission statement to set major goals leads into specific business objectives.

Use goal-setting ACES

Most goals define positive consequencesfor the business to achieve, but sometimes the goals are set to eludedrawbacks and to eliminate weaknesses. To help develop goals the acronym ACES can be used:

Achieve: What to attain in the future?

Conserve: What to hang on to?

Eliminate: What to get rid of?

Steer clear: What to avoid?

Cover all the bases.

Consider each of the four categories into which most goals fall:

Day-to-day work goals in order to increasecompanies’ everyday effectiveness; Problem-solving goals address specific challenges that confront your business; Development goals boost the acquisition of new skills and expertise; Innovation goals help find new ways to improve the products or services that a company offers; Profitability goals set sights on where the bottom line should be.

The following guideline is useful to perfect the goal before releasing them:

Keep each goal clear and simple

Be specific

Be realistic

Don’t be afraid to push yourself and think big

Make sure that your goals are in sync with your mission

Corporate objectives, examples:

Amazon.com:  The Company's objective is to become the best place to buy, find and discover any product or service available online. Amazon.com will continue to enhance and broaden its brand, customer base and electronic commerce expertise with the goal of creating customers' preferred online shopping destination, in the United States and around the world.

Restaurant Mugaritz: The Company has prioritized both culinary evolution and an interdisciplinary approach, crossing the established borders, creating a unique gastronomic experience that shocks, surprises and delight the diner, in a style of food that is often referred to as “Techno-emotional Spanish.”