‘Goal’, or the lack of it, can be life-changing for individuals and businesses. For a business, failing to accomplish set goals can be a doors-closing event. For example, without revenue goals, there is no revenue forecast, which a company needs to solidify plans to make, and deliver products, and to obtain financing to pay the resultant business expenses.
A sound business goal is a target that is specific, measurable, achievable, relevant and time-bound. Such goals have an intrinsic quantitative or qualitative value that makes it worthwhile to consume company resources to achieve them. Businesses set goals to specify what a company hopes to achieve during a time frame and to alert employees to efforts that leadership considers worthwhile. Business goals also focus a company’s leadership on what day-to-day objectives a company must achieve, such as ramping up a production line by 15 percent or hiring employees with a particular skill set, to accomplish its business goals. In addition, goals set standards against which a company can compare its actual performance.
Business goals may include profitability goals, development goals and day-to-day goals, as well as problem-solving goals and innovation goals. Whereas achieving a certain level of profitability is the primary goal of any business, business leaders are also concerned with ensuring employees develop an expertise, such as accounting or quality assurance. Other goals might include developing innovative products, implementing state-of-the art manufacturing processes or improving the manner in which sales or production orders are entered and processed.
Reference
Nordmeyer, B. (2014). What are business goals? eHow
