Align your business goals with your business strategy to accomplish your mission and vision.
Focus on goals that will move you closer to your vision or mission and produce the outcomes you expect from your business activities. Creating your business's mission and vision will lay the foundation of your business goals. They encompass what you are trying to accomplish and why your business exists.
Your main business goal is to achieve revenue with operational efficiency. To achieve this goal you need a holistic approach, encompassing all the main aspects of your business including the markets you wish to enter, the products and services you offer and the customer segments you target. Combining all these aspects in your strategy will provide you with a long-term direction.
- Your goals should reflect your team’s objectives as well as the business’s strategy. Clear business goals will help you allocate your resources and capabilities, and keep your team more focused and motivated.
- Keep in mind that the goals you aim for will influence the nature and course of your business.
- Your business goals should include customers you want to target, growth opportunities you want to exploit, new ways of doing business, satisfying key stakeholders and nurturing the culture of your organisation.
When setting goals, think about how you will achieve the outcomes and where they will lead. Where will you make a difference? How will you achieve growth? How will you inspire trust in your team? To be meaningful and achievable, make your goals SMART (Specific, Measurable, Achievable, Realistic, Time-bound), as it ensures they are carefully thought through and well-defined.
• Set realistic objectives to drive your strategy. Failing to consider your capabilities and capacity to deliver could result in you not achieving your potential.
A business strategy is a plan for how to achieve your business’s goals: how to build on your business’s strengths, position the business for competitive advantage (across markets and within the value chain), identify significant investments of time and resources, and motivate action towards objectives and improved performance.
• Your business strategy provides a focus for everything that the business does, and every aspect of the business should be aligned with that strategy, including the way the organisation is designed.
• For example, it will explain your key market segments (both for customers and suppliers), how you should deal with competition, how to look at your customers’ needs and how to communicate with internal and external stakeholders. Its aim is to guide the long-term growth and sustainability of your business.
Having a strategy is important as it gives your employees a sense of purpose when it comes to taking the actions necessary to support business growth.
• It is your business strategy that defines the approach and tactics you adopt when running your business.
• Without a well-defined and well-developed strategy, there will be no coordination between identifying goals and taking steps to achieve those goals.
Follow these guidelines to create your own business strategy.