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What Are the Best Tips for Setting Business Objectives?

By Felicia Dye
Updated: May 16, 2024

To set strong business objectives, it is first necessary to understand their importance. Objectives should be realistic and also specific. Anyone developing business objectives should also realize that they are not meant to be permanent because this is an indication that they are improperly developed.

It is important to understand the function of business objectives, which is to define purpose. If this is not recognized and the value of objectives is underestimated, there is a chance that proper consideration will not be given to the task of setting them. There may be attempts to develop plans either before the objectives are defined or simultaneously, and that will not work. Before any effort is made to determine how to do something, it must be clear what needs to be done.

When setting business objectives, a company must be realistic. Challenges are positive because they can motivate a workforce and allow them to enjoy a sense of accomplishment when they are successful. The lack of realism, however, is counterproductive. It may result in a workforce that does not exert proper effort and lacks confidence in the company that employs them.

Business objectives need to be specific. If there are parts that are vague, it is very likely that at least one individual will misunderstand them. Differing ideas may exist even among those who are developing the objectives. Consider, for instance, that an editorial staff agrees that their publication's objective is to be a top news authority. It needs to be defined whether being on top means having the highest sales, having the best content, or generating the most ad revenue.

Part of being specific is developing objectives in such a way that it can be determined when they are being met. A publication, for example, cannot determine whether it is on top if it has not set a measure of comparison. The editorial staff should consider, for example, whether they are attempting to overtake a local, national, or international market.

It is also important to realize that business objectives should not be permanent. If there is no need to change or modify objectives, this means that they were not properly set in the first place. At some point, a business should achieve its goals and need to set new ones. There may be times when, despite the best attempts, certain efforts cannot be achieved, and different goals need to be set. Furthermore, businesses commonly identify new opportunities, and to take advantage of them, the objectives must be augmented.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
By pastanaga — On Sep 16, 2011

@indigomoth - The thing is, often a business plan is being worked out by people who don't have much in common with their workers and don't have any idea how to be environmentally friendly, and so forth. These are things that should be discussed with people who do know about them, rather than guessed at.

It's the same as any other feature of your business plan. If you know nothing about accounting, you wouldn't try to set the goals in that area, would you? At least, not without help. Using a sample business objectives sheet is not really enough.

By indigomoth — On Sep 15, 2011

Another strategic business objective that gets looked down on is being an environmentally friendly company. It seems like, unless this was one of the reasons the business was founded in the first place, most of them don't bother.

This is bad for everyone in the long run. Particularly as the public is becoming more and more aware of environmental issues.

And things like recycling and power efficiency are, after all, good for the business as well because they help to save money. It's another thing your workers can take pride in, and it just makes sense because we're all human beings and we're all stuck here. We should look after the place.

By lluviaporos — On Sep 15, 2011

I know it might sound cheesy but I think that, as well as customer satisfaction, workplace satisfaction should be the goal of most, if not all businesses.

Not just out of a desire to "make the world a better place". Happy workers are loyal workers, after all. They'll work harder and longer and be more likely to stay rather than leave with a better offer.

Ultimately, I believe if a workplace takes care of its staff it will have financial benefits beyond the good karma.

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