Goals, Objectives, and Measures - Goals

A goal is a desired outcome that an organization aims to achieve within a specific timeframe. It represents a clear and measurable endpoint, expressed as a target, towards which efforts are directed. Goals provide direction, motivation, and focus; guiding actions and decisions to move closer to the desired result

Goals contain three components: outcome, time period, and a target. 

Common outcomes for strategic goals are:

• Increase revenue
• Manage costs
• Maintain profitability

But there are a long list of alternatives that may be better for your organization. 

Generally speaking, simpler is better, but more complex organizations may need to specify detail to provide clarity for teams adopting their operational plans to the new goal.  If there are other constraints or conditions, those should be stated as well, such as specifying:

• Organic growth
• Growth through acquisition
• Growth through channels or partnerships
• Revenue from specific products or channels

Time Period: The strategic plan is usually executed over the upcoming fiscal or calendar year, unless specifically stated otherwise. In general, the longer the time period, the more audacious the associated goals. If not for the current year, be sure to clarify duration in the goal statement.

Target: The specific measure defining successful completion of the outcome. Targets may be fixed amount or may represent change from a baseline. 

Change factor is a measurable quantity, such as:

• Decrease cost by $1 Million
• Increase revenue to $5 Million
• Double a prior goal, increase by 200% or 2x
• Reduce by half: decrease by 50%