Quick Guide to Organisational Goals

Defining Organisational Goals
 
Organisational goals can be defined as broad statements of what the organisation intends to achieve. Organisation theorists V.H. Vroom in 1960 defined organisation goals as, “desired future state of affairs”. Building on this, Koontz and Weihrich define it as: “Goals are the ends towards which activity is aimed –they are the result to be achieved.”  Suggesting:

• Organisational goals provide directions on which the organisation's decisions and actions are based upon.  
• Goals are the specific targets or standards against which actual performance can be measured. 

Organisational goals are not just where we hope to end up, but need to be relevant to decisions around what we do each and every day.

Importance of Organisational Goals
Goals help define an organisation's purpose and mission.

Goals provide guidance and a unified direction for staff so they can understand where the organisation is going and why getting there is important.  Organisational goals help staff to determine their course of action to achieve desired goals. Proficient goals can also help in prioritising work and keeping staff focussed on the right tasks.

Setting specific organisational goals can help an organisation measure their progress and determine the tasks that must be improved to meet their goals.

Specific, realistic, and challenging goals serve as a source of motivation and engagement for efficient, skilled, and hardworking employees. Setting and implementing effective goals can also help an organisation improve efficiency, productivity and consequently profitability.

Principles of Goal Setting
To be successful in todays competitive market, a business needs to set clear and articulated goals.
SMART is an acronym of a well respected tool that can be used to plan, set and achieve business goals. It  stands for Specific, Measurable, Achievable, Realistic, and Timely. SMART goals were originally developed by George Doran, Arthur Miller and James Cunningham in their 1981 article “There's a S.M.A.R.T. way to write management goals and objectives”.
SMART goals are:

• Specific: Well defined, clear and focussed
• Measurable: With specific criteria
• Achievable: Attainable
• Realistic: Reachable and relevant
• Timely: Having a clearly defined timeline

Smart goals build a measurable goal that encompasses specifically what needs to be accomplished and when and how you will know when you are successful.

Types of Organisational Goals
Organisational goals are formulated to meet the needs of an organisation and can be categorised into three types.

1. Strategic Goals.

Strategic goals are long-term vision, big picture goals rather than a short-term tactic that addresses a current problem or challenge. These goals are generated and set by and for top management which cover and direct overall activities of an organisation. These big picture goals develop a strategic plan to help develop how all departments should work together to achieve it.

1. Tactical Goals.

Tactical goals are closely aligned to strategic planning and middle managers are normally responsible for their attainment. They are more concrete and often require smaller steps and a shorter time frame.

1. Operational Goals.

Operational goals are usually made to tackle shorter-term issues aligned with tactical goals. They differ from strategic goals in that they focus more on “how” than “what.” Operational goals are usually set by and for lower level managers. They are usually evaluated using performance measures that help an organisation determine whether or not they are on the right track.
 
Goals are critical to organisational effectiveness and productivity. The goals we set need to go beyond management speak and rhetoric, to guide action and decisions and help motivate employees to achieve and thrive.
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Remember: If you don’t plan to succeed then you plan to fail!

Collagis has extensive experience in helping organisations develop strategic plans and organisational goals. Their strategic business advisory services, unpack strategic business issues with actionable insight. They focus on defining key problems & opportunities, identifying drivers and barriers and on clear execution roadmaps to achieve the desired end state. If you're ready to take your next step in strategic planning,  we'd love to hear from you.

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