Company objectives mark the route for different areas to follow in order to achieve growth within a determined period of time. To be effective, they must comply with the SMART model. This implies that they must be clearly defined and answer what, why, how and who, in addition, they must have metrics that allow progress to be evaluated, be realistic according to the available resources of the project and establish a deadline that determines their fulfillment.
Strategic objectives are the long-term goals that an SME establishes to achieve results by aligning with the mission and vision. They manage to be a guide for decision-making, planning and future actions, ensuring that all areas of the company work with the same purpose.
How to create strategic objectives step by step
Assess the current situation
Before thinking about objectives, it is necessary to understand where the company starts from. Here we will do a SWOT analysis, which allows us to assess the competitive position, examine internal and external factors. We can identify internal strengths and weaknesses, as well as external opportunities and threats, offering a clear and realistic view of the company’s situation.
Define the identity and direction of the company
Once the current situation has been analyzed with the help of the SWOT analysis, it is essential to know the mission, vision and values of the company.
- Mission: mainly defines what the company’s work in the market is. In addition, it can include the differentiating factor through which the activity is developed.
- Vision: defines the goals we intend to achieve in the future. These goals have to be realistic and achievable, since the vision proposal has an inspiring and motivating character.
- Values: are ethical principles on which our company’s culture is based and allow us to create patterns of behavior. Values are the company’s personality
Establish strategic objectives
Once we know the current situation of the company and have a clear understanding of its mission, vision and values, we can define the strategic objectives. These objectives must be translated into long-term goals with a specific purpose that guide the actions of the entire organization.
Formulate SMART strategic objectives
Once the objectives have been established, we must specify them using the SMART criteria, which allows each objective to be achievable. We must follow the formula of:
- Specific: What you want to achieve must be clearly defined
- Measurable: There must be a way to measure progress or success with an indicator.
- Achievable: the objective must be realistic, considering the available resources, the team and the company’s capabilities.
- Relevant: the objective must be aligned with the mission, vision and values.
- Time-bound: a deadline or time limit must be established for its fulfillment.
For example:
Reach 5 million followers on social media in 5 years
- Specific: Gain followers on social media
- Measurable: 5 million followers
- Time-bound: 5 years
Strategic objectives allow the company’s vision and mission to be converted into concrete results. By defining them clearly, measurably, realistically and with deadlines, all areas work together towards the same purpose, facilitating planning, monitoring and sustainable growth of the company.
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