As a Business Manager, it is part of your job to plan for the future of your business, and set goals and objectives that you would like to see your business achieve. Effective goal setting will help you to plan and control your business more efficiently, improving your chances of success and profitability. Show
A valuable method used to help you manage your business, employees and the planning process to assist you in the achievement of your goals, is the Management By Objectives approach. — Management by objectivesTraditionally, job descriptions for employees have focused on the functions or activities related to specific roles within a business or company. This can be of particular use when training new members of staff and laying out their daily, weekly and monthly tasks. The Management By Objectives (MBO) approach, however, encourages your employees to set goals for themselves, which will ultimately help to achieve the overall objectives of the business. To help you plan your business more effectively, and to convey those plans clearly and concisely to your employees, it is important to get your team thinking of the results that they were hired to achieve for your business, rather than simply the functions they are expected to perform. Having a team that is dedicated to achieving a set of goals designed to help improve your business will be much more beneficial to your business than having a staff that is simply going through the motions. Using the Management by Objectives approach in your business means getting your staff more involved by asking them to set their own work goals, that will ultimately help the business to achieve its overall objectives. — Defining your businessIn order to properly plan your business’s goals and objectives for the future, you must first understand and be able to define what your business is. If you are just starting out and do not yet have a business plan, ask yourself, what business am I in? Think about what kind of product or service you are offering, what industry your business fits into, and where it will be located in the marketplace, when compared to your competitors, i.e. high-end or budget products, etc. Clarifying what your business is will be a crucial step in the planning process. This definition will help you to position yourself when devising marketing and product development strategies, deciding what materials, equipments and assets will be needed to run your business, and what your business’s financial and personnel requirements will be. — Setting GoalsThere are two main types of goals that you should focus on when planning for your business’s future success, long-term and short-term. The long-term goals, which you should set yourself, are they are going to be the most important on a large scale, and will help you to determine the direction your business is going to take, how it is going to grow and where it will be in five to ten years. Long-term goals Focus on specific areas of your business that you would like to improve, expand or simply develop, and indicate how you want them to have changed in your allotted time period. If you are starting a new business, try to set goals that you would like to achieve within five years of operation. If you are new to the marketplace, you are less likely to be able to predict what you can achieve and how the marketplace is likely to change over a longer period. When setting these goals, try to include all of your managers, asking them to help decide what the business’s objectives should be. You are going to need their interest and cooperation to help you to achieve these goals, and they are likely to show a greater commitment if they have a hand in formulating the plan. Some areas to consider when setting your long term goals are:
Short-term goals Setting short-term goals, especially when you are just starting out in business, will help you to manage the progress of your staff and encourage them to work towards their long-term objectives as they achieve each of their short-term goals. It is a good idea to ask your staff to set these goals for themselves to get them involved in the process and thinking about they can help to improve your business. Short-term goals should be achievable within a shorter time frame, possibly weekly, monthly or bi-annually. All goals should support the overall objectives that you have set for your business and help you and your staff work toward achieving them. — Types of goalsRegular work goals These goals relate to the major functions of each of your managers, and at the next level the functions of every member of your staff. They should help your staff to focus on managing the operations of their departments more efficiently, improving the quality of the product or service that your business offers, and expanding the area of your business that they are in charge of. Problem-solving goals Ask your managers to define the problems that they experience while carrying out the operations of their departments, and to set goals that will help them to solve these problems and to avoid them in the future. Innovative goals To keep up with current trends in the marketplace and continue to contend with competitors, it is important in many industries to set goals for innovative practices, whether they relate to developing new products or to more efficient production methods, better management procedures or more effective customer service. Development goals These goals should include the continued training of staff, encouraging the acquisition of new skills and growth of individual employees to help them improve their performance and achieve their goals. — Devising a work planTo implement the Management By Objective approach in your workplace, you will need to draw up a work plan that will allow each of your managers, and each member of their staff to effectively set their goals, in order to make them clearly defined and more easily achievable. The following should be taken into consideration when putting your work plan into practice:
To ensure that this management process is working for your business and your staff, it is important to regularly review the progress that your employees are making toward achieving their goals, and monitor how their performance is helping you to achieve your business’s goals. — Following upIt is possible that, after implementing this approach to management in your business, you will find that it is not working for your business. There are several reasons why this may be the case, the most common of which are not involving upper management in the process of setting and monitoring goals and progression, inadequate or unachievable corporate objectives or not putting proper preparation into installing the planning process. If the MBO approach has not yielded the results you wanted for your business, consider why and how you can fix these problems before deciding that it will not work for you.
To obtain results, we need to articulate the outcomes we desire. This section focuses on developing specific objectives that will help make your vision and mission a reality. What are objectives?Objectives are the specific measurable results of the initiative. Objectives specify how much of what will be accomplished by when. For example, one of several objectives for a community initiative to promote care and caring for older adults might be: "By 2024 (by when), to increase by 20% (how much) those elders reporting that they are in daily contact with someone who cares about them (of what)." There are three basic types of objectives. They are:
It's important to understand that these different types of objectives aren't mutually exclusive. Most groups will develop objectives in all three categories. Objectives should be S.M.A.R.T. + C.:
Why should you create objectives?There are many good reasons to develop objectives for your initiative. They include:
When should you create objectives?Your community organization should create objectives when:
How do you create objectives?So once your organization has decided that it does wish to develop objectives, how do you go about doing so? Let's look at the process that will help you to define and refine objectives for your organization. Define or reaffirm your vision and mission statementsThe first thing you will need to do is review the vision and mission statements your organization has developed. Before you determine your objectives, you should have a "big picture" that they fit into. Determine the changes to be madeThe crux of writing realistic objectives is learning what changes need to happen in order to fulfill your mission. There are many ways to do this, including:
At this point in the planning process, you don't need hard and fast answers to the above questions. What you should develop as part of this step is a general list of what needs to occur to make the changes you want to see.
Collect baseline data on the issues to be addressedAs soon as your organization has a general idea of what it wants to accomplish, the next step is to develop baseline data on the issue to be addressed. Baseline data are the facts and figures that tell you how big the problem is; it gives specific figures about the extent to which it exists in your community. Baseline data can indicate the incidence (new cases) of a problem in the community. For example, "Malott County has an adolescent pregnancy rate of 12.3 pregnancies for every thousand teenage girls." Such data can also reveal the prevalence (existing cases) of the problem. For example, "In Jefferson County, 35% of teens reported that they did not use contraceptives during the last time they had sex." Baseline data may also measure community attitudes towards a problem. For example, "65% of the residents of Malott County do not consider teen pregnancy to be an important problem for the community." Why collect baseline data? This information is important because baseline data provides your organization with the numbers; the starting points against which you can measure how much progress you have made. Not only is this information helpful when originally asking for financial (or other) assistance, it can help you show what your organization has done later in its lifetime. So, early in your organization's life, you can prove to funders that there really is a very significant problem in your community that needs to be addressed ("Malott County's adolescent pregnancy rate is the highest in the state of Georgia.") Then, when asked later in the life of your community initiative, "What have you done?" you will be able to answer, "Since our coalition was formed, Malott County has seen pregnancy among teens drop by 35%." If you don't collect (or obtain) the baseline information, you can't prove how much you have done. How do you collect this information? There are two basic ways to collect baseline data:
Decide what is realistic for your organization to accomplishOnce you know what you want to do, as well as exactly how big the problem is, it's time to figure out how much you believe your organization can accomplish. Do you have the resources to affect all of the goals you looked at in Step Two? And to what extent will you be able to achieve them? These questions are difficult ones to answer. It's hard for a new organization to know what it can reasonably expect to get done. For example, if you are trying to increase rates of childhood immunization, will your organization be able to increase it by 5% in three years, or by 20% in one year? How do you make these decisions? Unfortunately, there are no easy answers. Your organization will need to take a good look at its resources, as well as talk to experts who have a sense of what is not only possible, but likely. For example, you might ask members of organizations who have done similar things, or researchers in your topic area what they believe makes sense. Remember, you are attempting to set objectives that are both achievable and challenging. It's hard to hit just the right note of balance between these two qualities, and you may not always get it just right. Research and experience, however, should help you come closer and closer to this goal. Set the objectives for your organization or initiativeWith all of this information in mind, your organization is ready to set some short-term goals or objectives that are feasible but demanding. Remember, objectives refer to specific measurable results. These changes in behavior, outcome, and process must be able to be tracked and measured in such a way to show that a change has occurred.
Your organization's list of objectives should do all of the following:
Let's look at one more example of some objectives; these goals come from an organization focusing on preventing adolescent substance use.
Review the objectives your organization has createdBefore you finalize your objectives, it makes sense for members of your organization to review them one more time, and possibly, ask people outside of your organization to review them as well. You might ask members of your organization who were not involved in the development process to review your work. You may also wish to get the thoughts of local experts, targets and agents of change, and/or of people doing similar work in other communities to review what you have developed. You can ask reviewers to comment on:
Use your objectives to define your organization's strategiesFinally, once you have your objectives, you are ready for the next step: developing the strategies that will make them possible. Once your objectives are finished, and satisfactory to members of the organization and important people outside of your group, you are ready to move on to developing successful strategies. In SummaryDeveloping objectives is a critical step in the planning process. The next section covers how to develop strategies to achieve the objectives you have set. |