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Goals and Objectives for Business Plan with Examples

NOV.05, 2023

Every business needs a clear vision of what it wants to achieve and how it plans to get there. A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and actions to achieve them. A well-written business plan from business plan specialists can help a business attract investors, secure funding, and guide its growth.

Understanding Business Objectives

Business objectives are S pecific, M easurable, A chievable, R elevant, and T ime-bound (SMART) statements that describe what a business wants to accomplish in a given period. They are derived from the overall vision and mission of the business, and they support its strategic direction.

Business plan objectives can be categorized into different types, depending on their purpose and scope. Some common types of business objectives are:

• Financial objectives
• Operational objectives
• Marketing objectives
• Social objectives

For example, a sample of business goals and objectives for a business plan for a bakery could be:

• To increase its annual revenue by 20% in the next year.
• To reduce its production costs by 10% in the next six months.
• To launch a new product line of gluten-free cakes in the next quarter.
• To improve its customer satisfaction rating by 15% in the next month.

The Significance of Business Objectives

Business objectives are important for several reasons. They help to:

• Clarify and direct the company and stakeholders
• Align the company’s efforts and resources to a common goal
• Motivate and inspire employees to perform better
• Measure and evaluate the company’s progress and performance
• Communicate the company’s value and advantage to customers and the market

For example, by setting a revenue objective, a bakery can focus on increasing its sales and marketing efforts, monitor its sales data and customer feedback, motivate its staff to deliver quality products and service, communicate its unique selling points and benefits to its customers, and adjust its pricing and product mix according to market demand.

Advantages of Outlining Business Objectives

Outlining business objectives is a crucial step in creating a business plan. It serves as a roadmap for the company’s growth and development. Outlining business objectives has several advantages, such as:

• Clarifies the company’s vision, direction, scope, and boundaries
• Break down the company’s goals into smaller tasks and milestones
• Assigns roles and responsibilities and delegates tasks
• Establishes standards and criteria for success and performance
• Anticipates risks and challenges and devises contingency plans

For example, by outlining its business objective for increasing the average revenue per customer in its business plan, a bakery can:

• Attract investors with its viable business plan for investors
• Secure funding from banks or others with its realistic financial plan
• Partner with businesses or organizations that complement or enhance its products or services
• Choose the best marketing, pricing, product, staff, location, etc. for its target market and customers

Setting Goals and Objectives for a Business Plan

Setting goals and objectives for a business plan is not a one-time task. It requires careful planning, research, analysis, and evaluation. To set effective goals and objectives for a business plan, one should follow some best practices, such as:

OPTION 1: Use the SMART framework. A SMART goal or objective is clear, quantifiable, realistic, aligned with the company’s mission and vision, and has a deadline. SMART stands for:

• Specific – The goal or objective should be clear, concise, and well-defined.
• Measurable – The goal or objective should be quantifiable or verifiable.
• Achievable – The goal or objective should be realistic and attainable.
• Relevant – The goal or objective should be aligned with the company’s vision, mission, and values.
• Time-bound – The goal or objective should have a deadline or timeframe.

For example, using the SMART criteria, a bakery can refine its business objective for increasing the average revenue per customer as follows:

• Specific – Increase revenue with new products and services from $5 to $5.50.
• Measurable – Track customer revenue monthly with sales reports.
• Achievable – Research the market, develop new products and services, and train staff to upsell and cross-sell.
• Relevant – Improve customer satisfaction and loyalty, profitability and cash flow, and market competitiveness.
• Time-bound – Achieve this objective in six months, from January 1st to June 30th.

OPTION 2: Use the OKR framework. OKR stands for O bjectives and K ey R esults. An OKR is a goal-setting technique that links the company’s objectives with measurable outcomes. An objective is a qualitative statement of what the company wants to achieve. A key result is a quantitative metric that shows how the objective will be achieved.

OPTION 3: Use the SWOT analysis. SWOT stands for S trengths, W eaknesses, O pportunities, and T hreats. A SWOT analysis is a strategic tool that helps the company assess the internal and external factors that affect its goals and objectives.

• Strengths – Internal factors that give the company an advantage over others. 
• Weaknesses – Internal factors that limit the company’s performance or growth. 
• Opportunities – External factors that allow the company to improve or expand. 
• Threats – External factors that pose a risk or challenge to the company.

For example, using these frameworks, a bakery might set the following goals and objectives for its SBA business plan :

Objective – To launch a new product line of gluten-free cakes in the next quarter.

Key Results:

• Research gluten-free cake market demand and preferences by month-end.
• Create and test 10 gluten-free cake recipes by next month-end.
• Make and sell 100 gluten-free cakes weekly online or in-store by quarter-end.

SWOT Analysis:

• Expertise and experience in baking and cake decorating.
• Loyal and satisfied customer base.
• Strong online presence and reputation.

Weaknesses:

• Limited production capacity and equipment.
• High production costs and low-profit margins.
• Lack of knowledge and skills in gluten-free baking.

Opportunities:

• Growing demand and awareness for gluten-free products.
• Competitive advantage and differentiation in the market.
• Potential partnerships and collaborations with health-conscious customers and organizations.
• Increasing competition from other bakeries and gluten-free brands.
• Changing customer tastes and preferences.
• Regulatory and legal issues related to gluten-free labeling and certification.

Examples of Business Goals and Objectives

To illustrate how to write business goals and objectives for a business plan, let’s use a hypothetical example of a bakery business called Sweet Treats. Sweet Treats is a small bakery specializing in custom-made cakes, cupcakes, cookies, and other baked goods for various occasions.

Here are some examples of possible startup business goals and objectives for Sweet Treats:

Earning and Preserving Profitability

Profitability is the ability of a company to generate more revenue than expenses. It indicates the financial health and performance of the company. Profitability is essential for a business to sustain its operations, grow its market share, and reward its stakeholders.

Some possible objectives for earning and preserving profitability for Sweet Treats are:

• To increase the gross profit margin by 5% in the next quarter by reducing the cost of goods sold
• To achieve a net income of $100,000 in the current fiscal year by increasing sales and reducing overhead costs

Ensuring Consistent Cash Flow

Cash flow is the amount of money that flows in and out of a company. A company needs to have enough cash to cover its operating expenses, pay its debts, invest in its growth, and reward its shareholders.

Some possible objectives for ensuring consistent cash flow for Sweet Treats are:

• Increase monthly operating cash inflow by 15% by the end of the year by improving the efficiency and productivity of the business processes
• Increase the cash flow from investing activities by selling or disposing of non-performing or obsolete assets

Creating and Maintaining Efficiency

Efficiency is the ratio of output to input. It measures how well a company uses its resources to produce its products or services. Efficiency can help a business improve its quality, productivity, customer satisfaction, and profitability.

Some possible objectives for creating and maintaining efficiency for Sweet Treats are:

• To reduce the production time by 10% in the next month by implementing lean manufacturing techniques
• To increase the customer service response rate by 20% in the next week by using chatbots or automated systems

Winning and Keeping Clients

Clients are the people or organizations that buy or use the products or services of a company. They are the source of revenue and growth for a company. Therefore, winning and keeping clients is vital to generating steady revenue, increasing customer loyalty, and enhancing word-of-mouth marketing.

Some possible objectives for winning and keeping clients for Sweet Treats are:

• To acquire 100 new clients in the next quarter by launching a referral program or a promotional campaign
• To retain 90% of existing clients in the current year by offering loyalty rewards or satisfaction guarantees

Building a Recognizable Brand

A brand is the name, logo, design, or other features distinguishing a company from its competitors. It represents the identity, reputation, and value proposition of a company. Building a recognizable brand is crucial for attracting and retaining clients and creating a loyal fan base.

Some possible objectives for building a recognizable brand for Sweet Treats are:

• To increase brand awareness by 50% in the next six months by creating and distributing engaging content on social media platforms
• To improve brand image by 30% in the next year by participating in social causes or sponsoring events that align with the company’s values

Expanding and Nurturing an Audience with Marketing

An audience is a group of people interested in or following a company’s products or services. They can be potential or existing clients, fans, influencers, or partners. Expanding and nurturing an audience with marketing is essential for increasing a company’s visibility, reach, and engagement.

Some possible objectives for expanding and nurturing an audience with marketing for Sweet Treats are:

• To grow the email list by 1,000 subscribers in the next month by offering a free ebook or a webinar
• To nurture leads by sending them relevant and valuable information through email newsletters or blog posts

Strategizing for Expansion

Expansion is the process of increasing a company’s size, scope, or scale. It can involve entering new markets, launching new products or services, opening new locations, or forming new alliances. Strategizing for expansion is important for diversifying revenue streams, reaching new audiences, and gaining competitive advantages.

Some possible objectives for strategizing for expansion for Sweet Treats are:

• To launch a new product or service line by developing and testing prototypes
• To open a new branch or franchise by securing funding and hiring staff

Template for Business Objectives

A template for writing business objectives is a format or structure that can be used as a guide or reference for creating your objectives. A template for writing business objectives can help you to ensure that your objectives are SMART, clear, concise, and consistent.

To use this template, fill in the blanks with your information. Here is an example of how you can use this template:

Example of Business Objectives

Our business is a _____________ (type of business) that provides _____________ (products or services) to _____________ (target market). Our vision is to _____________ (vision statement) and our mission is to _____________ (mission statement).

Our long-term business goals and objectives for the next _____________ (time period) are:

S pecific: We want to _____________ (specific goal) by _____________ (specific action).

M easurable: We will measure our progress by _____________ (quantifiable indicator).

A chievable: We have _____________ (resources, capabilities, constraints) that will enable us to achieve this goal.

R elevant: This goal supports our vision and mission by _____________ (benefit or impact).

T ime-bound: We will complete this goal by _____________ (deadline).

Repeat this process for each goal and objective for your business plan.

How to Monitor Your Business Objectives?

After setting goals and objectives for your business plan, you should check them regularly to see if you are achieving them. Monitoring your business objectives can help you to:

• Track your progress and performance
• Identify and overcome any challenges
• Adjust your actions and strategies as needed

Some of the tools and methods that you can use to monitor your business objectives are:

• Dashboards – Show key data and metrics for your objectives with tools like Google Data Studio, Databox, or DashThis.
• Reports – Get detailed information and analysis for your objectives with tools like Google Analytics, Google Search Console, or SEMrush.
• Feedback – Learn from your customers and their needs and expectations with tools like SurveyMonkey, Typeform, or Google Forms.

Strategies for Realizing Business Objectives

To achieve your business objectives, you need more than setting and monitoring them. You need strategies and actions that support them. Strategies are the general methods to reach your objectives. Actions are the specific steps to implement your strategies.

Different objectives require different strategies and actions. Some common types are:

• Marketing strategies
• Operational strategies
• Financial strategies
• Human resource strategies
• Growth strategies

To implement effective strategies and actions, consider these factors:

• Alignment – They should match your vision, mission, values, goals, and objectives
• Feasibility – They should be possible with your capabilities, resources, and constraints
• Suitability – They should fit the context and needs of your business

How OGSCapital Can Help You Achieve Your Business Objectives?

We at OGSCapital can help you with your business plan and related documents. We have over 15 years of experience writing high-quality business plans for various industries and regions. We have a team of business plan experts who can assist you with market research, financial analysis, strategy formulation, and presentation design. We can customize your business plan to suit your needs and objectives, whether you need funding, launching, expanding, or entering a new market. We can also help you with pitch decks, executive summaries, feasibility studies, and grant proposals. Contact us today for a free quote and start working on your business plan.

Frequently Asked Questions

What are the goals and objectives in business.

Goals and objectives in a business plan are the desired outcomes that a company works toward. To describe company goals and objectives for a business plan, start with your mission statement and then identify your strategic and operational objectives. To write company objectives, you must brainstorm, organize, prioritize, assign, track, and review them using the SMART framework and KPIs.

What are the examples of goals and objectives in a business plan?

Examples of goals and objectives in a business plan are: Goal: To increase revenue by 10% each year for the next five years. Objective: To launch a new product line and create a marketing campaign to reach new customers.

What are the 4 main objectives of a business?

The 4 main objectives of a business are economic, social, human, and organic. Economic objectives deal with financial performance, social objectives deal with social responsibility, human objectives deal with employee welfare, and organic objectives deal with business growth and development.

What are goals and objectives examples?

Setting goals and objectives for a business plan describes what a business or a team wants to achieve and how they will do it. For example: Goal: To provide excellent customer service. Objective: To increase customer satisfaction scores by 20% by the end of the quarter. 

At OGSCapital, our business planning services offer expert guidance and support to create a realistic and actionable plan that aligns with your vision and mission. Get in touch to discuss further!

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Original text

Business owners and startup entrepreneurs often spend a great deal of time defining their vision, values, goals, and strategy, but these well-known concepts are commonly muddled.

This Adviso blog gives an example, “A strategic plan is sometimes confused with a list of goals—when in fact, it should be a reflection on what success means for the company or organization, and how they plan to optimize for that success.”

These are all separate and distinct things that, if used correctly, can catapult your business into success. When confused, however, you’re less likely to reap the benefits of each.

Get a better understanding of how your vision, values, goals, and strategy can help you build a strong company and then put each one to use correctly.

1. start with company values.

First and foremost, it’s important to define your company’s core values . This will dictate elements of your branding, marketing, and customer experience. It will also eventually play into your company culture. This starts with asking yourself: why does this company exist? Why do I have this business and what can it provide to the world?

The answers to these questions help you determine your company values, which also dictate how you want your employees to interact with others and how audiences connect with your business. What’s more, your core values will help you make decisions, like hiring or letting people go, while also prioritizing goals and plans for the business.

As you brainstorm your core values, Craig Cincotta, an Entrepreneur contributor, suggests a few common values that all businesses should consider:

• Transparent
• Accountable
• Problem Solver

It’s important to remember that just like your brand slogan and logo , your values generally don’t change. They should become synonymous with your business, to both you, your customers, and your employees.

2. Think Big When Defining Your Vision

Every great business has a vision for the future. But unlike a mission statement , which defines where the company should be successful, your vision represents how you think others will respond or change when they have access to your company’s products, services, and success.

Lindsay Kolowich with HubSpot describes vision, saying: “A vision statement describes where the company aspires to be upon achieving its mission…[and] describes where the company wants a community, or the world, to be as a result of the company's services.”

Your vision doesn’t focus on growth rates or revenue but focuses on the future. It defines what you want to create or achieve as someone providing a valuable service or product. As you define your vision, aim for creating clarity and focus.

It’s tempting to talk in vague terms that are difficult for others to interpret, much less follow. Employees, partners, investors, vendors, customers, and others must be able to grasp your vision for it to work. For example, IKEA’s vision statement is: “Our vision is to create a better everyday life for many people.”

Straight-forward, clear, and concise. Use this as inspiration to define yours.

3. Bring Goals and Strategy Together

Setting goals, and creating a strategy to get there, might be the most challenging step. It’s no secret that people often struggle to achieve their goals, but people and businesses that take a proactive approach to set and following through with their goals are more likely to be successful. According to a study by Dr. Gail Matthews at the Dominican University of California, 70 percent of people who shared their goals and set up regular progress checks were successful compared to 35 percent who kept their goals private.

Here are some examples of goals:

• Bring in $250K revenue in Q1.
• Earn 50 new customers in 2020.
• Drive 50% of leads from Facebook in Q3.

Your goals are your business objectives. So ask yourself: Why do I want to accomplish that? And then, how can I turn that into an actionable and specific goal?

After setting your goals, it’s important to be transparent with your employees about what you hope to achieve, which requires a clear strategy that you and your team will use to reach them. Your strategies aren’t set in stone and may change all the time, in small steps or radical revisions. That’s critical to understand because business conditions, markets, competition, consumer preferences, and a wide range of other factors are constantly in flux. If your strategy remains fixed, your business will struggle to compete.

Remember that creating a sound strategy also means choosing what not to do. You can’t do it all, so you have to use your core values to stay focused on what’s important. Think of your strategy as the roadmap you use to achieve your vision and reach your goals, guided by the GPS of your values.

Use Vision, Values, Goals, and Strategies to Be Successful

Once your values, vision, goals, and strategies are outlined, you can use them together to grow a successful business.

A Recipe for Creating a Vision Board Vision boards are a visualization of where you want your life to go (both personal and professional). Discover how a vision board can work as a powerful tool.

Does Your Small Business Have a Strong Mission and Vision? Starting a business takes more than just spreadsheets, projections and an idea. It takes commitment, passion and a clear mission, vision and values

Copyright © 2024 SCORE Association, SCORE.org

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

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How to Write a Business Plan Mission and Vision Statement [Sample Template]

Are you currently writing a business plan? If YES, here’s an in-depth guide and sample template on how to write a workable mission & vision statement for a business. A vision and mission statement are some of the most important requisite for business success and sustainability, but unfortunately, most entrepreneurs and small business owners run their business without these two thing out of ignorance.

What is a Mission and Vision Statement?

A mission and vision statement ( more commonly called a mission statement or a vision statement ) is a brief sentence that declares the goals that a business plans to achieve in the future. Like a compass guides a ship, it guides a business to success by providing continuously inspiring its stakeholders in their daily operations and strategic moves.

A mission statement helps you plan your business effectively. It provides the destination for your journey to business success. Of course, without a destination, you can’t plan a route. Before we discuss the steps involved in developing a mission statement for your business, let’s look at the components of a mission statement and why you really need a mission statement for your business.

Today, I will be sharing with you an underground secret to building a business from scratch. This secret is one of the contributing factors to the success of any business; yet, it’s often ignored. This secret is nothing more than a “ Business Mission Statement. ”

“The thing I really care about is the mission; making the world open.” – Mark Zuckerberg

The importance of a mission statement can never be over emphasized. I have seen so many startups without a mission; even some established firms also make the mistake of operating without a mission.

“Being an entrepreneur, I have come to realize that all successful businesses are driven by three fundamentals. One is the cash flow, two is the team and three is the mission. Of these three, the mission is the most important.” – Ajaero Tony Martins

Now what has a mission statement got to do with building a business? What’s the impact of a mission statement on an entrepreneur undergoing the entrepreneurial process? Is a mission statement a source of ? While I am not going to answer these questions directly, the following points will help you further understand why you need to develop a mission statement for your business?

Why Your Business needs a Mission Statement

1. The mission is the foundation on which your business will be built. It’s the true purpose of your business and that purpose is reflected in the mission statement. Without a strong mission statement, you don’t have a true business. All you have is just a profit making venture that will soon be wiped out with time.

“To turn really interesting ideas and fledging ideas into a company that can continue to innovate for years, it requires a lot of disciplines.” – Steve Jobs

2. The entrepreneurial spirit is found in the mission statement. When I look at the mission statement of any business, I get a peep into the life of the entrepreneur that founded that business. The entrepreneurial spirit is what drives the entrepreneur forward. If the mission is strong, your spirit will be strong towards the pursuit of your goal.

“The IKEA spirit is strong and living reality. Simplicity in our behavior gives us strength. Simplicity and humbleness characterize us in our relations with each others, our suppliers and our customers.” – Ingvar Kamprad

3. Your mission statement is the bond binding you, your team, employees and your customers to the business. Take away the mission and other key elements will fall apart. Your mission also has the power to attract other like-minded individuals and entities to your cause. The reason is that people with the same mission align together; more like birds of the same feather flocking together.

4. With a strong mission, your business will weather any storm. Take a look at businesses that has been around for over 100 years and you will see businesses with a strong mission. As an example:

• General Electric has stood the test of time because the spirit of its founder “ Thomas Edison ” continues to guide the company through its mission.
• Henry Ford’s mission statement was: “ To democratize the automobile ” and that mission has kept the Ford Motor Company going.
• Aliko Dangote’s mission statement goes: “ Providing your basic need ” and this mission drives the Dangote Group to dominate the commodities market of
• The Rich Dad Company; founded by Robert Kiyosaki keeps waxing strong because of its mission, which is “ To elevate the financial well being of humanity .”

By contrast; I have come to observe that when a company forgets its mission, its starts to lose its relevance. The bond holding the business will be broken and good customers will leave, employees will resign and the business will dwindle. Just as the case of the Dot com burst, many profitable Dot com companies went under because they forgot their mission.

3 Components of a Mission and Vision Statement

1.  a vision.

This, simply put, states the impact you envision your business having on the world in years to come. You can have more than a single statement in here, but don’t go beyond three. Gloss it over to make sure anyone who reads it feels at least one of inspiration, hope, commitment, and awe.

In addition, your vision statement must be compelling, detailed, and reflective of the intended end outcome. Avoid one that is bland, generic, uninspiring, or unreasonable. An example of a good vision statement is that of Amazon:

“Our vision is to be earth’s most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.”

2.  A mission statement

This is a brief statement that states the important goal or purpose that your business is poised to achieve. In other words, it’s a single sentence stating why your business exists in a convincing manner. Keep your mission statement specific and concise ( the shorter it is, the better ), make it connect with both employees and stakeholders, and make it highlight your value proposition. Don’t make it too long, generic, or confusing. An example of a good mission statement is that of Nike:

“To bring inspiration and innovation to every athlete in the world.”

Here’s another example of a mission statement:

“To contribute to development of value-added agricultural businesses . ”

3. Core values

These outline the principles and values that the stakeholders in a business will follow in their bid to achieve their vision. They also specify the bounds or limits that the stakeholders must watch while trying to actualize the mission. The following are examples of core values:

• Respect and protect the environment
• Offer high quality products that are safe for consumers
• Meet the ever-changing needs of consumers
• Practice highly ethical business standards

If your business is going to stand the test of time, then you will have to build it upon a strong mission. With the above in mind, let’s now look at the steps involved in developing a mission and visions statement.

How to Write a Mission and Vision Statement for a Business Plan

Please bear in mind that you are learning as much of yourself each day as you are about your customer. So, don’t feel that anything you state here is etched in stone and cannot be changed. The more you understand your customer and the market, the more necessary it would become for you to shift grounds accordingly. But you need to state here what you have to offer at the moment. This will be a starting point for any changes you may need to effect later ( as your business grows ).

1.  Sit down in a quiet spot and reflect upon your thoughts

Ask yourself what drives you forward? What keeps you motivated? When you have figured out the answer to these questions, put it down in writing.

2.  Ask yourself how best you can serve your customers

What will your business stand for in the heart of your customers? What will be the ultimate benefit your customers can derive from your business? When you figure the answer to these questions out, put it down in writing.

3. Brainstorm for your vision statement

The vision is the most important component of your mission statement. Simply put, this is a picture or idea of what you plan to achieve in future . A vision statement is always concise and easy to remember, and for this reason, every stakeholder in a business can easily focus on it; and their decisions and activities are directed towards achieving the vision. Here is a good example of a vision statement:

“ Creating a vibrant rural economy driven by value-added agriculture. “

Once you get one down, then getting other components becomes very easy. To find the best vision statement for your business, simply ask yourself the question, “Why does this business exist?” Present answers from various angles, and you will find your mission statement among them.

4.  Get down your mission statement

As stated earlier, your mission statement is that action sentence that describes how you will achieve your vision. Finding this is much easier once you have found your vision statement. If you are stuck, just do it this way: If your vision is “A diabetes-free society” , then simply add the word “ To ” and another suitable verb to convert it to an action sentence. And there you will have your mission statement.

Using the same vision, you will get “To bring about a diabetes-free society .” You can go further by tweaking it, so that you will have something like: “To manufacture products that can cure diabetes effectively and permanently.” You get it now?

5.  List your core values

First off, you need to clarify your values. This means taking into account all the various stakeholders that your business is ( or will be ) accountable to—including investors, customers, employees, and suppliers. Now, consider how you would like to ideally conduct business with each of these stakeholders. Start making a list and your core values should start to emerge.

These are the various steps you will follow in your quest to achieve your vision. Brainstorm for as many as possible, list them down, and the prune your list down to as few as possible without leaving out any important ones. Now, let’s look at some additional tips that you will need to keep in mind when preparing your mission and vision statement.

4 Extra Success Tips for Developing a Business Plan Mission and Vision Statement

• Your mission statement must be brief and simple. Being succinct as demanded by a mission statement isn’t easy. And you may need to go through several hours of tweaking and editing before arriving at the perfect sentence. Though short, your mission statement must capture the very essence of what your business plans to achieve. The fewer words the better. Use just only the few words needed to pass the message without leaving out any vital details.
• Your mission statement must be in tune with your vision, and both sentences must blend to form a single thought.
• There’s no rule that says you must get it perfectly at once. You can keep review your mission statement later, if necessary.
• Your mission and vision statements must give the reader an insight, a covert one, at least into what you offer. This is more important if the name of your business doesn’t suggest what products or services you’re offering.

If you follow the guidelines I shared in this post, you will prepare a perfect vision and mission statement that will drive your business to success. Now I want you to know that no one can help you develop a mission statement. You alone can develop your mission and as a final note, it’s worthwhile you know that of the entire business system, the mission is the most important.

• Go to Chapter 8 Part C: Writing your Business Plans Goals and Objectives
• Go Back to Chapter 7 : H ow to Write a Business Plan Executive Summary
• Go Back to Introduction and Table of Content

More on Business Plans

How to Write a Vision Statement (With Examples, Tips, and Formulas)

This comprehensive guide will take you through the entire process of writing a well-thought-out and compelling business vision statement. 

Here’s what you will discover inside: 

• Why is a vision statement important for company goals?

Vision Statement vs Mission Statement: What’s the difference?

• Bad Vision Statements Examples (And What Makes Them Bad)

Helpful Tips for Writing your Vision Statement

• Fail-proof formula: Write your vision statement in 4 simple steps 
• Great Vision Statement Examples For Inspiration
• How to effectively communicate the company vision?

What is a Vision Statement?

In short, a vision statement describes the desired future state of a business within a 5-10 year timeframe and guides the direction of the business's efforts. It is essentially the future objectives of a business. The vision statement is also one of the key elements in a highly-effective business strategic plan.

Why is a vision statement important for company goals? 

We explained the real purpose of the vision statement  in this article , but here’s a quick reminder of what we're trying to achieve with a company vision statement:

• Improve the decision-making process by setting a 'limiter' that helps us to rule out strategic initiatives and opportunities which aren’t aligned with business long-term goals. 
• Make a succinct statement about what our organization is trying to achieve to help third parties such as investors or the media better understand us.
• Create a strong North Star that can guide and motivate employees even during difficult times if it is taken seriously.
• Develop an engaging vision statement that’s  one of the key elements  of thriving company culture. 

The bottom line is that a vision statement isn't just a nice-to-have. It should be included in every business plan and strategy discussion, especially during the strategic planning process , to ensure the organization and its departments stay aligned with its vision and don’t get sidetracked.

The most common mistake we see across the internet and with our clients is that most people do not understand the difference between a company's vision and mission. 

While we covered this a bit more in-depth  in this article , here’s a short recap: 

• A vision statement  describes a long-term, idealistic  state  of the FUTURE. 
• A mission statement  is a roadmap to a specific destination (your VISION) that explains how will you achieve it. 

Mistaking one for another can prevent an organization from reaching its full potential. 

So, while keeping this in mind, let’s look at some “vision” statements examples and analyze where they fit so you can avoid doing the same mistake when crafting your own vision statement.

Bad Vision Statements Examples (and why)

Here are some real-life examples of vision statements that, in our opinion, could do with a little tweaking. For each, we will explain what could be done better.

"Provide maximum value for our shareholders whilst helping our customers to fulfill their dreams."

If this was your vision statement  → Well, let’s hope it isn’t. That’s a classic mission statement example that describes HOW the company will achieve its vision. 

"Our company vision is to make every brand more inspiring and the world more intelligent by 2023."

If this was your vision statement  → You would want to make it more specific and relatable. Is it realistic that 'every brand' will use the services of this company? How about 'making the world more intelligent.' Can you be more specific on which brands? What does it mean to make the world more intelligent? Not to be too harsh though - there are strong elements here; 'making brands more inspiring' makes a lot of sense and has some depth.

"We aspire to be the most admired and valuable company in the world."

If this was your vision statement  → We would suggest you rethink your decision. Can you even make it more empty than it is? Which company doesn’t want to be the most admired and most valuable? Your vision statement should be more specific than that. 

"We are committed to achieving new standards of excellence by providing superior human capital management services and maximizing the potential of all stakeholders - clients, candidates, and employees - through the delivery of the most reliable, responsive ..." [and it goes on, but that's probably enough]...

If this was your vision statement  → you’d want to make sure it is less tangible and subjective. 'New standards of excellence'. 'Superior human capital management. 'Maximizing the potential'. There are simply far too many buzzwords, intangibles, and vagueness here for this to be either memorable or inspiring.

We are, of course, being rather harsh. But hopefully, the above examples illustrate well some of the pitfalls to avoid when creating your own vision.

Keep in mind that vision creation doesn't begin with sitting behind a desk and writing black on white. Reach out to your stakeholders and team members who will play a role in realizing the company's vision. Organize a workshop, or more if necessary, to brainstorm ideas and gather their feedback.

This toolkit with a template and workbook can help you with brainstorming exercises and navigating the whole process.

As a result, including other stakeholders in the vision-creation process will not only yield ideas but also get buy-in from the beginning since it will be their vision too. 

Here are 8 tips to help you write a memorable vision statement: 

• Keep it  short  - max 2 sentences. Your vision statement should be punchy and easy to remember. 
• Make it  specific  to your business and describe a unique outcome that only you can provide.
• Write it in the present tense. 
• Do not use words that are open to interpretation. Saying that you will maximize shareholder return in 2022 doesn't mean anything unless you specify what that means.
• Simple is best . There is a tendency for people to overcomplicate things, but you should make your vision clear enough for both people within and outside your organization to understand. Stay away from jargon, metaphors, and business buzzwords. 
• It should be  ambitious  enough to get people excited, but not so ambitious that it seems impossible to achieve.
• A vision statement isn't a one-off thing and  should evolve  with your business. When brainstorming your vision for the future, stick to a five-year timeframe. It's an ambitious end goal that's far enough ahead to work towards, but not too far for the organization to lose focus and commitment. 
• Vision  should align  with your company's core values. We go deeper into company values in this article, but when you have created your company values, you should review your vision to see if it aligns.

If anything, you should memorize these 4 words before you go into crafting your own vision statement:  Short, Specific, Simple , and  Ambitious .

Fail-proof formula: Write your vision statement in 4 simple steps

There are literally hundreds of articles out there that give examples of good and bad vision statements. There's also plenty of articles that give a high-level overview of what to consider when creating your own.

However, what we noticed was lacking was a concrete process to go through to help you create one. As such, we've outlined a process that we have used with clients in Cascade that might work for you too.

There are plenty of great vision statements out there that will not conform to the process below. But if you're struggling or just need a place to start, then hopefully this will help.

Step 1: Define what you do as an outcome

Start by being exceptionally clear about what it is your organization actually does. Be careful to remain 'outcome focused' rather than 'output focused'. For example, Microsoft famously had a vision statement to Put a Microsoft powered computer on every desk in the world (slightly paraphrased).

Strictly speaking, what Microsoft 'do' is make computer software, but for the purposes of their Vision, they looked forward to the actual outcome of this process - i.e. computers on desks.

Let's look at some other hypothetical examples:

• A bakery makes bread. But the outcome is consumers enjoying that bread.
• A consulting company gives advice. But the outcome is the success of others based on that advice.
• A government department does...lots of things. But the outcome is better lives for the citizens they serve.

Whilst this process may seem obvious - you would be surprised by how rarely organizations actually go through this process in a formal, written way.

Doing so will take you a long way towards creating your vision statement - BUT it's not enough alone! If it was, all bakeries, for example, would have the same vision statement - which is hardly inspiring!

TIP: If you are not sure where your organization wants to be in the future, you can use different tools, like SWOT or SOAR analysis , that will help you formulate your vision and future-oriented goals.

Step 2: Define what unique twist your organization brings to the above outcome

Very few products or services these days are truly new - most are more like reinventions of something that exists already, but with a different approach, focus or spin.

At some point in your organization's lifespan - someone will have believed that the reason that THIS organization would be successful where others have failed, was because of.........something.

You need to define that something!

Let's take our bakery example. So far, our vision statement looks pretty generic, along the lines of customers enjoying our bread. But why will they enjoy our bread MORE than the bread from the place next door?

Is it because we use centuries-old traditions passed through generations of our family? Because we only use premium grade locally sourced ingredients? Whatever your unique selling point is - let it shine through in your vision statement.

Step 3: Apply some high-level quantification

Ironically, a common problem with a vision statement that isn't as good is that it's too visionary! With no possible end in sight (or a totally unrealistic one) - the initial inspiration derived from a solid vision statement can quickly turn to frustration or even cynicism among employees and customers.

That said - this doesn’t mean you should put numbers or any financial metrics to your vision statement. This will come later in your planning process.

However, you still want to add some high-level quantification to make it achievable.

Sticking with our bakery example, we might want to refine our target audience to 'every customer who walks through the door'. That's fine, or maybe we want to be bolder: 'every customer within walking distance of a store'.

The quantification we apply could also be industry specific. If you're a B2B - are you shooting for small businesses or multinationals, for example?

Step 4: Add relatable, human, 'real world' aspects

OK, your vision statement by this point should be getting pretty close to finished. But one final trick you can apply to help make it even more memorable is to add a real-life aspect.

This will allow people to conjure up a solid mental image to associate with your vision statement.

Let's look at an example - which of the following statements is likely to be more memorable:

a) To have every working person in the world using Microsoft product.

b) A Microsoft-powered computer on every desk.

I would argue that (b) is more memorable because as I read this, I'm actually visualizing a computer (in my case) sitting on a wooden desk in a room.

There's nothing wrong with (a) but it's highly conceptual and thus difficult to transform into a mental picture. Let's look at another example:

"Ensure that every customer who leaves our store, does so smiling." 

Here, using the word 'smiling' as opposed to 'happy' is powerful, because it conjures a mental image of a person smiling.

It won't always be possible to bring this level of tangibility to a vision statement - but if it is, I would strongly encourage doing so.

Final check

Our tip for creating a good vision statement is to use our formula, which we explain below, in conjunction with the CASCADE vision framework. 

Ask yourself the following questions to check if your vision statement checks all boxes of a good vision: 

• Is it  C lear? 
• Is it  A mbitious, but not seemingly unattainable? 
• Is it  S timulating? 
• Is it  C oncise
• Is it too  A bstract? 
• D uration: Is it limited to a specific time range? 

Does it  E ncourage you to take action?

Great Vision Statement Examples for inspiration

First, let’s look at the vision statement on an example of the bakery we used in the previous section.

Following our 4-step process, the final vision statement looks like this:

Producing and selling locally sourced cakes and pies that are so delicious and satisfying , that every customer who leaves our store does so with a smile.

If we deconstruct this into our various steps, we can see each at work as follows:

Step 1 - The output Step 2 - The twist Step 3 - The quantification Step 4 - The human connection

Even if yours doesn't look like this at the end, following the process above will help you to bring structure and purpose to your effort.

Of course - there are other ways to write a well-thought-out and effective vision statement. So let’s look at some other examples of great vision that don’t match our vision statement formula but still make an engaging and memorable company vision: 

Vision statement: To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online. 

Vision statement: To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.

Vision statement: A global force for Learning-through-Play. 

We love this one because it’s short, sweet and easy to remember. 

Vision statement: To create the most compelling car company of the 21st century by driving the world's transition to electric vehicles.

Note: If you look closely, you’ll see that their vision statement is a mix of vision and mission statement. Let’s remember the difference between these two: Vision shows your business desired future state, while the company’s mission describes how you will get there. 

Cascade tip:  If you’re in doubt about what is a vision statement and what is a mission statement, do this simple test with two questions: 

• What do they want to achieve?  To create the most compelling car company of the 21st century…  (vision statement)
• How?  … by driving the world's transition to electric vehicles.  (mission statement)

Want to see more examples of a great vision statement? Check  this article with 17 vision statement examples  from top companies, such as Patagonia, Ikea, LinkedIn, and Disney. 

How to effectively communicate the company vision? 

Let's say you've finally crafted the perfect vision statement that makes everyone in the C-suite proud. Marketing updated the website, ran a PR, and posted across all company social media channels. The new direction is making waves in the company, but as time passes, everyone forgets about it and gets on with their business-as-usual. 

If you have a vision but take no action - your organization has no future. In other words, you need to keep the company's vision top of mind 24/7/365 if you want to achieve it. Consistent communication is the key to success.

Keep your vision statement in a place where everyone can see it on a daily basis.

You can start by including your vision in every company-wide meeting. Here at Cascade, we make sure to run the all-hands meeting every week. Here’s what our agenda usually looks like: 

• Drive alignment around company vision and overall strategy 
• Communicate the strategy priorities 
• Share updates and progress toward key business goals
• Celebrate our accomplishment 
• Establish two-way communication between employees and executives 

Turn your vision into a strategic advantage 

We have entered a new normal - an environment where change is the norm. You may have a top-flight board and a great executive team, but the success of your organization depends on your leadership. Your vision for the future needs to be clear and strong so people can understand it and join forces behind it.

In short, unity and a laser-sharp focus are what separate winning businesses from losers these days.

Cascade has your back, offering speedy and agile  business transformation  to help you align teams behind a shared vision and drive business growth.  See Cascade in action  to discover how you can turn your vision into reality.

Editor’s note:

This article was originally part of our ‘How to Write a Strategy’ series:

• How To Write A Strategic Plan: The Cascade Model
• How to Write a Good Vision Statement (This Article)
• How To Create Company Values
• Creating Strategic Focus Areas
• How To Write Strategic Objectives
• How To Create Effective Projects
• How To Write KPIs

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Plan Your Business Plan Before you put pen to paper, find out how to assess your business's goals and objectives.

You've decided to write a business plan, and you're ready to get started. Congratulations. You've just greatly increased the chances that your business venture will succeed. But before you start drafting your plan, you need to--you guessed it--plan your draft.

One of the most important reasons to plan your plan is that you may be held accountable for the projections and proposals it contains. That's especially true if you use your plan to raise money to finance your company. Let's say you forecast opening four new locations in the second year of your retail operation. An investor may have a beef if, due to circumstances you could have foreseen, you only open two. A business plan can take on a life of its own, so thinking a little about what you want to include in your plan is no more than common prudence.

Second, as you'll soon learn if you haven't already, business plans can be complicated documents. As you draft your plan, you'll be making lots of decisions on serious matters, such as what strategy you'll pursue, as well as less important ones, like what color paper to print it on. Thinking about these decisions in advance is an important way to minimize the time you spend planning your business and maximize the time you spend generating income.

To sum up, planning your plan will help control your degree of accountability and reduce time-wasting indecision. To plan your plan, you'll first need to decide what your goals and objectives in business are. As part of that, you'll assess the business you've chosen to start, or are already running, to see what the chances are that it will actually achieve those ends. Finally, you'll take a look at common elements of most plans to get an idea of which ones you want to include and how each will be treated.

Determine Your Objectives Close your eyes. Imagine that the date is five years from now. Where do you want to be? Will you be running a business that hasn't increased significantly in size? Will you command a rapidly growing empire? Will you have already cashed out and be relaxing on a beach somewhere, enjoying your hard-won gains?

Answering these questions is an important part of building a successful business plan. In fact, without knowing where you're going, it's not really possible to plan at all.

Now is a good time to free-associate a little bit--to let your mind roam, exploring every avenue that you'd like your business to go down. Try writing a personal essay on your business goals. It could take the form of a letter to yourself, written from five years in the future, describing all you have accomplished and how it came about.

As you read such a document, you may make a surprising discovery, such as that you don't really want to own a large, fast-growing enterprise but would be content with a stable small business. Even if you don't learn anything new, though, getting a firm handle on your goals and objectives is a big help in deciding how you'll plan your business.

Goals and Objectives Checklist If you're having trouble deciding what your goals and objectives are, here are some questions to ask yourself:

• How determined am I to see this succeed?
• Am I willing to invest my own money and work long hours for no pay, sacrificing personal time and lifestyle, maybe for years?
• What's going to happen to me if this venture doesn't work out?
• If it does succeed, how many employees will this company eventually have?
• What will be its annual revenues in a year? Five years?
• What will be its market share in that time frame?
• Will it be a niche marketer, or will it sell a broad spectrum of good and services?
• What are my plans for geographic expansion? Local? National? Global?
• Am I going to be a hands-on manager, or will I delegate a large proportion of tasks to others?
• If I delegate, what sorts of tasks will I share? Sales? Technical? Others?
• How comfortable am I taking direction from others? Could I work with partners or investors who demand input into the company's management?
• Is it going to remain independent and privately owned, or will it eventually be acquired or go public?

Your Financing Goals

It doesn't necessarily take a lot of money to make a lot of money, but it does take some. That's especially true if, as part of examining your goals and objectives, you envision very rapid growth.

Energetic, optimistic entrepreneurs often tend to believe that sales growth will take care of everything, that they'll be able to fund their own growth by generating profits. However, this is rarely the case, for one simple reason: You usually have to pay your own suppliers before your customers pay you. This cash flow conundrum is the reason so many fast-growing companies have to seek bank financing or equity sales to finance their growth. They are literally growing faster than they can afford.

Start by asking yourself what kinds of financing you're likely to need--and what you'd be willing to accept. It's easy when you're short of cash, or expect to be short of cash, to take the attitude that almost any source of funding is just fine. But each kind of financing has different characteristics that you should take into consideration when planning your plan. These characteristics take three primary forms:

• First, there's the amount of control you'll have to surrender. An equal partner may, quite naturally, demand approximately equal control. Venture capitalists often demand significant input into management decisions by, for instance, placing one or more people on your board of directors. Angel investors may be very involved or not involved at all, depending on their personal style. Bankers, at the other end of the scale, are likely to offer no advice whatsoever as long as you make payments of principal and interest on time and are not in violation of any other terms of your loan.
• You should also consider the amount of money you're likely to need. Any amount less than several million dollars is too small to be considered for a standard initial public offering of stock, for example. Venture capital investors are most likely to invest amounts of $250,000 to $3 million. On the other hand, only the richest angel investor will be able to provide more than a few hundred thousand dollars, if that.

Almost any source of funds, from a bank to a factor, has some guidelines about the size of financing it prefers. Anticipating the size of your needs now will guide you in preparing your plan.

• The third consideration is cost. This can be measured in terms of interest rates and shares of ownership as well as in time, paperwork and plain old hassle.

How Will You Use Your Plan

Believe it or not, part of planning your plan is planning what you'll do with it. No, we haven't gone crazy--at least not yet. A business plan can be used for several things, from monitoring your company's progress toward goals to enticing key employees to join your firm. Deciding how you intend to use yours is an important part of preparing to write it.

Do you intend to use your plan to help you raise money? In that case, you'll have to focus very carefully on the executive summary, the management, and marketing and financial aspects. You'll need to have a clearly focused vision of how your company is going to make money. If you're looking for a bank loan, you'll need to stress your ability to generate sufficient cash flow to service loans. Equity investors, especially venture capitalists, must be shown how they can cash out of your company and generate a rate of return they'll find acceptable.

Do you intend to use your plan to attract talented employees? Then you'll want to emphasize such things as stock options and other aspects of compensation as well as location, work environment, corporate culture and opportunities for growth and advancement.

Do you anticipate showing your plan to suppliers to demonstrate that you're a worthy customer? A solid business plan may convince a supplier of some precious commodity to favor you over your rivals. It may also help you arrange supplier credit. You may want to stress your blue-ribbon customer list and spotless record of repaying trade debts in this plan.

Assessing Your Company's Potential

For most of us, unfortunately, our desires about where we would like to go aren't as important as our businesses' ability to take us there. Put another way, if you choose the wrong business, you're going nowhere.

Luckily, one of the most valuable uses of a business plan is to help you decide whether the venture you have your heart set on is really likely to fulfill your dreams. Many, many business ideas never make it past the planning stage because their would-be founders, as part of a logical and coherent planning process, test their assumptions and find them wanting.

Test your idea against at least two variables. First, financial, to make sure this business makes economic sense. Second, lifestyle, because who wants a successful business that they hate?

Answer the following questions to help you outline your company's potential. There are no wrong answers. The objective is simply to help you decide how well your proposed venture is likely to match up with your goals and objectives.

• What initial investment will the business require?
• How much control are you willing to relinquish to investors?
• When will the business turn a profit?
• When can investors, including you, expect a return on their money?
• What are the projected profits of the business over time?
• Will you be able to devote yourself full time to the business, financially?
• What kind of salary or profit distribution can you expect to take home?
• What are the chances the business will fail?
• What will happen if it does?
• Where are you going to live?
• What kind of work are you going to be doing?
• How many hours will you be working?
• Will you be able to take vacations?
• What happens if you get sick?
• Will you earn enough to maintain your lifestyle?
• Does your family understand and agree with the sacrifices you envision?

Sources: The Small Business Encyclopedia , Business Plans Made Easy, Start Your Own Business and Entrepreneur magazine.

Continue on to the next section of our Business Plan How-To >> Elements of a Business Plan

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How to Set Strategic Planning Goals

• 29 Oct 2020

In an ever-changing business world, it’s imperative to have strategic goals and a plan to guide organizational efforts. Yet, crafting strategic goals can be a daunting task. How do you decide which goals are vital to your company? Which ones are actionable and measurable? Which goals to prioritize?

To help you answer these questions, here’s a breakdown of what strategic planning is, what characterizes strategic goals, and how to select organizational goals to pursue.

Access your free e-book today.

What Is Strategic Planning?

Strategic planning is the ongoing organizational process of using available knowledge to document a business's intended direction. This process is used to prioritize efforts, effectively allocate resources, align shareholders and employees, and ensure organizational goals are backed by data and sound reasoning.

Research in the Harvard Business Review cautions against getting locked into your strategic plan and forgetting that strategy involves inherent risk and discomfort. A good strategic plan evolves and shifts as opportunities and threats arise.

“Most people think of strategy as an event, but that’s not the way the world works,” says Harvard Business School Professor Clayton Christensen in the online course Disruptive Strategy . “When we run into unanticipated opportunities and threats, we have to respond. Sometimes we respond successfully; sometimes we don’t. But most strategies develop through this process. More often than not, the strategy that leads to success emerges through a process that’s at work 24/7 in almost every industry."

Related: 5 Tips for Formulating a Successful Strategy

4 Characteristics of Strategic Goals

To craft a strategic plan for your organization, you first need to determine the goals you’re trying to reach. Strategic goals are an organization’s measurable objectives that are indicative of its long-term vision.

Here are four characteristics of strategic goals to keep in mind when setting them for your organization.

1. Purpose-Driven

The starting point for crafting strategic goals is asking yourself what your company’s purpose and values are . What are you striving for, and why is it important to set these objectives? Let the answers to these questions guide the development of your organization’s strategic goals.

“You don’t have to leave your values at the door when you come to work,” says HBS Professor Rebecca Henderson in the online course Sustainable Business Strategy .

Henderson, whose work focuses on reimagining capitalism for a just and sustainable world, also explains that leading with purpose can drive business performance.

“Adopting a purpose will not hurt your performance if you do it authentically and well,” Henderson says in a lecture streamed via Facebook Live . “If you’re able to link your purpose to the strategic vision of the company in a way that really gets people aligned and facing in the right direction, then you have the possibility of outperforming your competitors.”

Related: 5 Examples of Successful Sustainability Initiatives

2. Long-Term and Forward-Focused

While strategic goals are the long-term objectives of your organization, operational goals are the daily milestones that need to be reached to achieve them. When setting strategic goals, think of your company’s values and long-term vision, and ensure you’re not confusing strategic and operational goals.

For instance, your organization’s goal could be to create a new marketing strategy; however, this is an operational goal in service of a long-term vision. The strategic goal, in this case, could be breaking into a new market segment, to which the creation of a new marketing strategy would contribute.

Keep a forward-focused vision to ensure you’re setting challenging objectives that can have a lasting impact on your organization.

3. Actionable

Strong strategic goals are not only long-term and forward-focused—they’re actionable. If there aren’t operational goals that your team can complete to reach the strategic goal, your organization is better off spending time and resources elsewhere.

When formulating strategic goals, think about the operational goals that fall under them. Do they make up an action plan your team can take to achieve your organization’s objective? If so, the goal could be a worthwhile endeavor for your business.

4. Measurable

When crafting strategic goals, it’s important to define how progress and success will be measured.

According to the online course Strategy Execution , an effective tool you can use to create measurable goals is a balanced scorecard —a tool to help you track and measure non-financial variables.

“The balanced scorecard combines the traditional financial perspective with additional perspectives that focus on customers, internal business processes, and learning and development,” says HBS Professor Robert Simons in the online course Strategy Execution . “These additional perspectives help businesses measure all the activities essential to creating value.”

The four perspectives are:

• Internal business processes
• Learning and growth

The most important element of a balanced scorecard is its alignment with your business strategy.

“Ask yourself,” Simons says, “‘If I picked up a scorecard and examined the measures on it, could I infer what the business's strategy was? If you've designed measures well, the answer should be yes.”

Related: A Manager’s Guide to Successful Strategy Implementation

Strategic Goal Examples

Whatever your business goals and objectives , they must have all four of the characteristics listed above.

For instance, the goal “become a household name” is valid but vague. Consider the intended timeframe to reach this goal and how you’ll operationally define “a household name.” The method of obtaining data must also be taken into account.

An appropriate revision to the original goal could be: “Increase brand recognition by 80 percent among surveyed Americans by 2030.” By setting a more specific goal, you can better equip your organization to reach it and ensure that employees and shareholders have a clear definition of success and how it will be measured.

If your organization is focused on becoming more sustainable and eco-conscious, you may need to assess your strategic goals. For example, you may have a goal of becoming a carbon neutral company, but without defining a realistic timeline and baseline for this initiative, the probability of failure is much higher.

A stronger goal might be: “Implement a comprehensive carbon neutrality strategy by 2030.” From there, you can determine the operational goals that will make this strategic goal possible.

No matter what goal you choose to pursue, it’s important to avoid those that lack clarity, detail, specific targets or timeframes, or clear parameters for success. Without these specific elements in place, you’ll have a difficult time making your goals actionable and measurable.

Prioritizing Strategic Goals

Once you’ve identified several strategic goals, determine which are worth pursuing. This can be a lengthy process, especially if other decision-makers have differing priorities and opinions.

To set the stage, ensure everyone is aware of the purpose behind each strategic goal. This calls back to Henderson’s point that employees’ alignment on purpose can set your organization up to outperform its competitors.

Calculate Anticipated ROI

Next, calculate the estimated return on investment (ROI) of the operational goals tied to each strategic objective. For example, if the strategic goal is “reach carbon-neutral status by 2030,” you need to break that down into actionable sub-tasks—such as “determine how much CO2 our company produces each year” and “craft a marketing and public relations strategy”—and calculate the expected cost and return for each.

The ROI formula is typically written as:

ROI = (Net Profit / Cost of Investment) x 100

In project management, the formula uses slightly different terms:

ROI = [(Financial Value - Project Cost) / Project Cost] x 100

An estimate can be a valuable piece of information when deciding which goals to pursue. Although not all strategic goals need to yield a high return on investment, it’s in your best interest to calculate each objective's anticipated ROI so you can compare them.

Consider Current Events

Finally, when deciding which strategic goal to prioritize, the importance of the present moment can’t be overlooked. What’s happening in the world that could impact the timeliness of each goal?

For example, the coronavirus (COVID-19) pandemic and the ever-intensifying climate change crisis have impacted many organizations’ strategic goals in 2020. Often, the goals that are timely and pressing are those that earn priority.

Learn to Plan Strategic Goals

As you set and prioritize strategic goals, remember that your strategy should always be evolving. As circumstances and challenges shift, so must your organizational strategy.

If you lead with purpose, a measurable and actionable vision, and an awareness of current events, you can set strategic goals worth striving for.

Do you want to learn more about strategic planning? Explore our online strategy courses and download our free flowchart to determine which is right for you and your goals.

This post was updated on November 16, 2023. It was originally published on October 29, 2020.

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Chapter 2: Leading Strategically

Vision, Mission, and Goals

Learning Objectives

• Define vision and mission and distinguish between them.
• Know what the acronym SMART represents.
• Be able to write a SMART goal.

The Importance of Vision

Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion. —Jack Welch, former CEO of General Electric

Many skills and abilities separate effective strategic leaders like Howard Schultz from poor strategic leaders. One of them is the ability to inspire employees to work hard to improve their organization’s performance. Effective strategic leaders are able to convince employees to embrace lofty ambitions and move the organization forward. In contrast, poor strategic leaders struggle to rally their people and channel their collective energy in a positive, focused direction.

As the quote from Jack Welch suggests, a vision  is one key tool available to executives to inspire the people in an organization ( Figure 2.2 “The Big Picture: Organizational Vision” ). An organization’s vision describes what the organization hopes to become in the future. Well-constructed visions clearly articulate an organization’s aspirations. Google’s mission is to organize the world’s information and make it universally accessible and useful (Edwards, 2012). Google expands on its mission by listing “Ten things we know,” including “Focus on the user and all else will follow,” “It’s best to do one thing really, really well,” and  “Fast is better than slow” (Google Inc., 2014).

This brief but powerful statement emphasizes several aims that are important to Google, including excellence in customer service, and setting high standards for employees and Google’s products. McDonald’s brand mission is “to be our customers’ favourite place and way to eat. Our worldwide operations are aligned around a global strategy called the Plan to Win, which centre on an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers’ experience.”  To be effective, this mission statement must filter down to all employees and inspire them to adopt that mission. (Edwards, 2012).

One limitation of such all-encompassing goals is that front line and operational employees will not relate or connect with the goals, and will disengage from the process – flavour of the month…. The CEO/management team who can effectively translate the high-level objectives to on-the-ground activities will have good success in engaging staff! Of course, a strong element of walk-the-talk is required by management as well.

The results of a survey of 1,500 executives illustrate how the need to create an inspiring vision creates a tremendous challenge for executives. When asked to identify the most important characteristics of effective strategic leaders, 98 percent of the executives listed “a strong sense of vision” first. Meanwhile, 90 percent of the executives expressed serious doubts about their own ability to create a vision. Not surprisingly, many organizations do not have formal visions. Many organizations that do have visions find that employees do not embrace and pursue the visions. Having a well-formulated vision that employees embrace can therefore give an organization an edge over its rivals.

Mission Statements

At WestJet, Clive Beddoe and his team developed its mission statement: “To enrich the lives of everyone in WestJet’s world by providing safe, friendly and affordable air travel.” A mission such as WestJet’s states the reasons for an organization’s existence. Well-written mission statements effectively capture an organization’s identity and provide answers to the fundamental question “Who are we?” While a vision looks to the future, a mission captures the key elements of the organization’s past and present.

Organizations need support from their key stakeholders, such as employees, owners, suppliers, and customers, if they are to prosper. A mission statement which engages stakeholders will help develop an understanding of why they should support the organization and  make clear what important role or purpose the organization plays in society – also called a “social license to operate.” Google’s mission, for example, is “to organize the world’s information and make it universally accessible and useful.” Google pursued this mission in its early days by developing a very popular Internet search engine. The firm continues to serve its mission through various strategic actions, including offering its Internet browser Google Chrome to the online community, providing free email via its Gmail service, and making books available online for browsing.

In ancient times, Aesop said, “United we stand, divided we fall.” This provides a helpful way of thinking about the relationship between vision and mission. Executives ask for trouble if their organization’s vision and mission are divided by emphasizing different domains. Some universities have fallen into this trap. Many large public universities were established in the late 1800s with missions that centered on educating citizens. As the 20th century unfolded, however, creating scientific knowledge through research became increasingly important to these universities. Many university presidents responded by creating visions centered on building the scientific prestige of their schools. This created a dilemma for professors: Should they devote most of their time and energy to teaching students (as the mission required) or on their research studies (as ambitious presidents demanded via their visions)? Some universities continue to struggle with this trade-off today and remain houses divided against themselves. In sum, an organization is more effective to the extent that its vision and its mission target employees’ effort in the same direction.

Pursuing the Vision and Mission through SMART Goals

An organization’s vision and mission combined offer a broad, overall sense of the organization’s direction. To work toward achieving these overall aspirations, organizations also need to create goals —narrower aims that should provide clear and tangible guidance to employees as they perform their work on a daily basis. The most effective goals are those that are

M easurable,

A chievable,

R ealistic, and

T ime-bound.

An easy way to remember these dimensions is to combine the first letter of each into one word: SMART ( Figure 2.4 “Creating SMART Goals” ). Employees are in a much better  position to succeed to the extent that an organization’s goals are SMART.A goal is specific if it is explicit rather than vague. WestJet’s vision is that “By 2016, WestJet will be one of the five most successful international airlines in the world providing our guests with a friendly caring experience that will change air travel forever.”

A goal is measurable to the extent that whether the goal is achieved can be quantified. WestJet’s goal of being one of the five most successful international airlines in the world by 2016 offers very simple and clear measurability: Either WestJet will be in the top five  by 2016 or they will not.

A goal is aggressive  if achieving it presents a significant (as opposed to easy) challenge to the organization. A series of research studies have demonstrated that performance is strongest when goals are challenging but attainable. Such goals force people to test and extend the limits of their abilities. This can result in reaching surprising heights.

WestJet committed to growing responsibly and ensuring that it is an environmentally sustainable airline, and supports the IATA goal of carbon neutral growth in its industry beyond 2020. WestJet already operates one of the most modern and fuel-efficient fleets in North America.

Achieving carbon neutral growth will be a challenge for WestJet requiring the combined efforts of the airline and its supplier partners such as aircraft manufacturers, airports and government.  In 2012, WestJet reported that “Our significant investments in fleet and technology have greatly improved our aircraft fuel efficiency and ability to operate our business more cost effectively. Between 2000 and 2012, we improved our fuel efficiency by 44.8 per cent per revenue tonne kilometre. The resulting fuel savings are equivalent to the amount of fuel that would have been used to fly a Boeing Next-Generation 737 from Calgary to Toronto and back approximately 44,135 times (based on our 2012 fuel usage).” (Quigley, 1994)

It is useful to know that  easily achievable goals are not only easy, but they tend to undermine overall motivation and effort by employees, Michelangelo said, “The greater danger for most of us lies not in setting our aim too high and falling short, but in setting our aim too low, and achieving our mark.” Consider a situation in which you have done so well in a course that you only need a score of 60 percent on the final exam to earn an A for the course. Understandably, few students would study hard enough to score 90 percent or 100 percent on the final exam under these circumstances Similarly, setting organizational goals that are easy to reach encourages employees to work just hard enough to reach the goals.

It is tempting to extend this logic and thinking to conclude that setting nearly impossible goals will encourage even stronger effort and performance from staff. However, people act rationally and tend to become  discouraged and give up  when faced with goals that realistically have little chance of being reached. If, for example, Starbucks had set a time frame of one year to regain a share price of $35, it would have attracted scorn. The company simply could not be turned around that quickly. Similarly, if WestJet’s fuel efficiency goal was 100 percent improvement, WestJet’s employees would probably not embrace it. Thus goals must also be realistic, meaning that their achievement is feasible.

Most of us have  found that deadlines are motivating and that they help you structure your work time. The same is true for organizations, leading to the conclusion that goals should be time-bound through the creation of deadlines. WestJet has set a goal to achieve a cumulative 45 per cent improvement in fuel efficiency for our 737 fleet by 2020, as compared to the 2000 base year. (WestJet, 2012)

The period after an important goal is reached is often overlooked but is critical. Will an organization rest on its laurels or will it take on new challenges? Starbucks provides an illustrative example.  In 2011, after a revamp of the company’s stores and services, the stock price was around $35. In early 2014, the price was in the $70 range.

Key Takeaway

Strategic leaders need to ensure that their organizations have three types of aims. A vision states what the organization aspires to become in the future. A mission reflects the organization’s past and present by stating why the organization exists and what role it plays in society. Goals are the more specific aims that organizations pursue to reach their visions and missions. The best goals are SMART: specific, measurable, achievable, realistic, and time-bound.

• Take a look at the website of your college or university. What is the organization’s vision and mission? Were they easy or hard to find?
• As a member of the student body, do you find the vision and mission of your college or university to be motivating and inspirational? Why or why not?
• What is an important goal that you have established for your career? Could this goal be improved by applying the SMART goal concept?

Edwards, A. (2012). Mission Statements–World’s Top 10 Brands . Retrieved from http://communicatingasiapacific.com/2012/06/15/mission-statements-worlds-top-10-brands/

Google Inc. (2014). Ten things we know to be true .  Retrieved from https://www.google.com.sg/about/company/philosophy/

Quigley, J. V. (1994). Vision: How leaders develop it, share it, and sustain it. Business Horizons , 37 (5), 37–41.

WestJet Airlines Ltd. (2012). WestJet 2012 Global Reporting Initiative report [PDF] . Retrieved from https://www.westjet.com/pdf/global-reporting.pdf

Image descriptions

Figure 2.2 image description: The Big Picture: Organizational Vision.

An organization’s vision describes what the organization hopes to become in the future. Visions highlight the values and aspirations that lay at the heart of the organization. Although vision statements have the potential to inspire employees, customers, and other stakeholders, vision statements are relatively rare and good visions are even rarer. Some of the visions being pursued by businesses today are offered below.

• Alcoa – to be the best company in the world – in the eyes of our customers, shareholders, communities and people.
• Avon – to be the company that best understands and satisfies the product service and self-fulfillment needs of women – globally.
• Chevron – to be the global energy company most admired for its people, partnership and performance.
• Google – to develop a perfect search engine.
• Kraft Foods – helping people around the world eat and live better.
• Proctor and Gamble – be, and be recognized as, the best consumer products and services company in the world.

[Return to Figure 2.2 ]

Figure 2.3 image description: Missions.

While a vision describes what an organization desires to become in the future, an organization’s mission is grounded in the past and present. A mission outlines the reasons for the organization’s existence and explains what role it plays in society. A well-written mission statement captures the organization’s identity and helps to answer the fundamental question of “who are we?” As a practical matter, a mission statement explains to key stakeholders why they should support the organization. The following examples illustrate the connections between organizations and the needs of their key stakeholders.

• Harley Davidson: we fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments.
• Westjet: to enrich the lives of everyone in Westjet’s world nu providing safe, friendly and affordable air travel.
• Starbucks: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time. It has always been, and will always be, about equality.
• Mountain Equipment Co-op: we help people enjoy the benefits of self-propelled wilderness-oriented recreation.
• Fender Musical Instrument: to exceed the expectations of music enthusiasts worldwide.

[Return to Figure 2.3]

Figure 2.4 image description: Creating SMART Goals.

While missions and visions provide an overall sense of the organization’s direction, goals are narrower aims that should provide clear and tangible guidance to employees. The most effective goals are those that are SMART (specific, measurable, achievable, realistic, and time-bound). SMART goals help provide clarity, transparency, and accountability. Westjet’s goal is “to enrich the lives of everyone in Westjet’s world by providing safe, friendly and affordable air travel. By 2016, we strive to be one of the top five airlines in the world as measured through key metrics such as on time performance, safety, profitability and guest satisfaction.

Westjet’s goals fit the SMART acronym.

• Specific: Westjet strives to be among the top five international airlines. In contrast, “the best” would be vague, making it difficult to decide if a goal is actually reached.
• Measurable: Westjet identifies the key metrics: on-time performance, safety, profitability and guest satisfaction. Westjet is able to measure its progress relative to its targets.
• Achievable: Westjet lists achievements to date in working towards the goals. A series of research studies show that performance is strongest when goals are challenging but attainable.
• Realistic: Westjet states support for the International Air Transport Association’s (IATA) goals of a cumulative global average improvement in fuel efficiency of 1.5 per cent per year through to 2020. Reaching a goal must be feasible for employees to embrace it.
• Time-bound: Westjet’s timeline is “By 2016.” Deadlines are motivating and they create accountability.

[Return to Figure 2.4]

Media Attributions

• Figure 2.1: Attribution information for all included images is in the chapter conclusion.
• Figure 2.2: Attribution information for all included images is in the chapter conclusion.
• Figure 2.3: Attribution information for all included images is in the chapter conclusion.

What the organization hopes to become in the future.

Narrower aims that organizations pursue to serve their visions and missions.

Mastering Strategic Management - 1st Canadian Edition Copyright © 2014 by Janice Edwards is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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Business Goals 101: How to Set, Track, and Achieve Your Organization’s Goals with Examples

By Kate Eby | November 7, 2022

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Learning how to set concrete, achievable business goals is critical to your organization’s success. We’ve consulted seasoned experts on how to successfully set and achieve short- and long-term business goals, with examples to help you get started.

Included on this page, you’ll find a list of the different types of business goals , the benefits and challenges of business goal-setting, and examples of short-term and long-term business goals. Plus, find expert tips and compare and contrast business goal-setting frameworks.

What Are Business Goals?

Business goals are the outcomes an organization aims to achieve. They can be broad and long term or specific and short term. Business leaders set goals in order to motivate teams, measure progress, and improve performance.

“Business goals are those that represent a company's overarching mission,” says David Bitton, Co-founder and CMO of DoorLoop . “These goals typically cover the entire business and are vast in scope. They are established so that employees may work toward a common goal. In essence, business goals specify the ‘what’ of a company's purpose and provide teams with a general course to pursue.”

For more resources and information on setting goals, try one of these free goal tracking and setting templates .

Business Goals vs. Business Objectives

Many professionals use the terms business goal and business objective interchangeably. Generally, a business goal is a broad, long-term outcome an organization works toward, while a business objective is a specific and measurable task, project, or initiative. 

Think of business objectives as the steps an organization takes toward their broader, long-term goals. In some cases, a business objective might simply be a short-term goal. In most cases, business goals refer to outcomes, while business objectives refer to actionable tasks. 

“Business objectives are clear and precise,” says Bitton. “When businesses set out to achieve their business goals, they do so by establishing quantifiable, simply defined, and trackable objectives. Business objectives lay out the ‘how’ in clear, doable steps that lead to the desired result.”

For more information and resources, see this article on the key differences between goals and objectives.

Common Frameworks for Writing Business Goals

Goal-setting frameworks can help you get the most out of your business goals. Common frameworks include SMART, OKR, MBO, BHAG, and KRA. Learning about these goal-setting tools can help you choose the right one for your company.

Here are the common frameworks for writing business goals with examples:

• SMART: SMART goals are specific, measurable, achievable, relevant, and time-bound. This is probably the most popular method for setting goals. Ensuring that your goals meet SMART goal criteria is a tried and true way to increase your chances of success and make progress on even your most ambitious goals. Example SMART Goal: We will increase the revenue from our online store by 5 percent in three months by increasing our sign-up discount from 25 to 30 percent.
• OKR: Another popular approach is to set OKRs, or objectives and key results. In order to use OKRs , a team or individual selects an objective they would like to work toward. Then they select key results , or standardized measurements of success or progress. Example Objective: We aim to increase the sales revenue of our online store. Example Key Result: Make $200,000 in sales revenue from the online store in June. 
• MBO: MBO, or management by objectives , is a collaborative goal-setting framework and management technique. When using MBO, managers work with employees to create specific, agreed-upon objectives and develop a plan to achieve them. This framework is excellent for ensuring that everyone is aligned on their goals. Example MBO: This quarter, we aim to decrease patient waiting times by 30 percent.
• BHAG: A BHAG, or a big hairy audacious goal , is an ambitious, possibly unattainable goal. While the idea of setting a BHAG might run contrary to a lot of advice about goal-setting, a BHAG can energize the team by giving everyone a shared purpose. These are best for long-term, visionary business goals. Example BHAG: We want to be the leading digital music service provider globally by 2030. 
• KRA: KRAs, or key result areas , refer to a short list of goals that an individual, department, or organization can work toward. KRAs function like a rubric for general progress and to help ensure that the team’s efforts have an optimal impact on the overall health of the business. Example KRA: Increase high-quality sales leads per sales representative. 

Use the table below to compare the pros and cons of each goal-setting framework to help you decide which framework will be most useful for your business goals.

Types of Business Goals

A business goal is any goal that helps move an organization toward a desired result. There are many types of business goals, including process goals, development goals, innovation goals, and profitability goals.

Here are some common types of business goals:

• Growth: A growth goal is a goal relating to the size and scope of the company. A growth goal might involve increasing the number of employees, adding new verticals, opening new stores or offices, or generally expanding the impact or market share of a company. 
• Process: A process goal , also called a day-to-day goal or an efficiency goal , is a goal to improve the everyday effectiveness of a team or company. A process goal might involve establishing or improving workflows or routines, delegating responsibilities, or improving team skills. 
• Problem-Solving: Problem-solving goals address a specific challenge. Problem-solving goals might involve removing an inefficiency, changing policies to accommodate a new law or regulation, or reorienting after an unsuccessful project or initiative.
• Development: A development goal , also called an educational goal , is a goal to develop new skills or expertise, either for your team or for yourself. For example, development goals might include developing a new training module, learning a new coding language, or taking a continuing education class in your field. 
• Innovation: An innovation goal is a goal to create new or more reliable products or services. Innovation goals might involve developing a new mobile app, redesigning an existing product, or restructuring to a new business model. 
• Profitability: A profitability goal , also called a financial goal , is any goal to improve the financial prospects of a company. Profitability goals might involve increasing revenue, decreasing debt, or growing the company’s shareholder value. 
• Sustainability: A s ustainability goal is a goal to either decrease your company’s negative impact on the environment or actively improve the environment through specific initiatives. For example, a sustainability goal might be to decrease a company’s carbon footprint, reduce energy use, or divest from environmentally irresponsible organizations and reinvest in sustainable ones.
• Marketing: A marketing goal , also called a brand goal , is a goal to increase a company’s influence and brand awareness in the market. A marketing goal might be to boost engagement across social media platforms or generate more higher-quality leads. 
• Customer Relations: A customer relations goal is a goal to improve customer satisfaction with and trust in your product or services. A customer relations goal might be to decrease customer service wait times, improve customers’ self-reported satisfaction with your products or services, or increase customer loyalty.
• Company Culture: A company culture goal , also called a social goal , is a goal to improve the work environment of your company. A company culture goal might be to improve employee benefits; improve diversity, equity, and inclusion (DEI) across your organization; or create a greater sense of work-life balance among employees. 

What Are Business Goal Examples?

Business goal examples are real or hypothetical business goal statements. A business goal example can use any goal-setting framework, such as SMART, OKR, or KRA. Teams and individuals use these examples to guide them in the goal-setting process. 

For a comprehensive list of examples by industry and type, check out this collection of business goal examples.

What Are Short-Term Business Goals?

Short-term business goals are measurable objectives that can be completed within hours, days, weeks, or months. Many short-term business goals are smaller objectives that help a company make progress on a longer-term goal.

The first step in setting a short-term business goal is to clarify your long-term goals. 

“My practice is to start with an aspirational vision that is the framework for my long-term goals and to compare that ‘better tomorrow’ with the realities of today,” says Morgan Roth, Chief Communication Strategy Officer at EveryLife Foundation for Rare Diseases . “Once that framework of three to five major goals is drafted and I have buy-in, I can think about how we get there. Those will be my short-term goals.”

Bitton recommends using the SMART framework for setting short-term business goals to ensure that your team has structure and that their goals are achievable. “Determine which objectives can be attained in a reasonable amount of time,” she adds. “This will help you stay motivated. Your organization may suffer if you try to squeeze years-long ambitions into a month-long project.”

Short-Term Business Goal Examples

Companies can use short-term business goals to increase profits, implement new policies or initiatives, or improve company culture. We’ve gathered some examples of short-term business goals to help you brainstorm your own goal ideas. 

Here are three sample short-term business goals:

• Increase Your Market Share: When companies increase their market share, they increase the percentage of their target audience who chooses their product or service over competitors. This is a good short-term goal for companies that have long-term expansion goals. For example, a local retail business might want to draw new customers from the local community. The business sets a goal of increasing the average number of customers who enter its store from 500 per week to 600 per week within three months. It can meet this goal by launching a local advertising initiative, reducing prices, or expanding its presence on local social media groups. Small business owners can check out this comprehensive guide to learn more about setting productive goals for their small businesses.
• Reduce Paper Waste: All businesses produce waste, but company leaders can take actions to reduce or combat excessive waste. Reducing your company’s paper waste is a good short-term goal for companies that have long-term sustainability goals. For example, a large company’s corporate headquarters is currently producing an average of four pounds of paper waste per employee per day. They set a goal of decreasing this number to two pounds by the end of the current quarter. They can meet this goal by incentivizing or requiring electronic reporting and forms whenever possible. 
• Increase Social Media Engagement: High social media engagement is essential for businesses that want to increase brand awareness or attract new customers. This is a good short-term goal for companies with long-term marketing or brand goals. For example, after reviewing a recent study, a natural cosmetics company learns that its target audience is 30 percent more likely to purchase products recommended to them by TikTok influencers, but the company’s social media team only posts sporadically on its TikTok. The company sets a goal of producing and posting two makeup tutorials on TikTok each week for the next three months.

What Are Long-Term Business Goals?

A l ong-term business goal is an ambitious desired outcome for your company that is broad in scope. Long-term business goals might be harder to measure or achieve. They provide a shared direction and motivation for team members. 

“Long-term planning is increasingly difficult in our very complex and interconnected world,” says Roth. “Economically, politically, and culturally, we’re seeing sea changes in the way we live and work. Accordingly, it’s important to be thoughtful about long-term goal-setting, but not to the point where concerns stifle creativity and your ‘Big Ideas.’ A helpful strategy I employ is to avoid assumptions. Long-term planning should be based on what you know, not on what you assume will be true in some future state.”

Tip: You can turn most short-term goals into long-term goals by increasing their scope. For example, to turn the “increase market share” goal described above into a long-term goal, you might increase the target weekly customers from 600 to 2,000. This will likely take longer than a few months and might require expanding the store or opening new locations.

Long-Term Business Goal Examples

An organization can use long-term business goals to unify their vision, motivate workers, and prioritize short-term goals. We’ve gathered some examples of long-term business goals to guide you in setting goals for your business. 

Here are three sample long-term business goals:

• Increase Total Sales: A common growth profitability goal is to increase sales. An up-and-coming software company might set a long-term goal of increasing their product sales by 75 percent over two years. 
• Increase Employee Retention: Companies with high employee retention enjoy many benefits, such as decreased hiring costs, better brand reputation, and a highly skilled workforce. A large corporation with an employee retention rate of 80 percent might set a long-term goal of increasing that retention rate to 90 percent within five years. 
• Develop a New Technology: Most companies in the IT sphere rely on innovation goals to stay competitive. A company might set a long-term goal of creating an entirely new AI technology within 10 years.

Challenges of Setting Business Goals 

Although setting business goals has few downsides, teams can run into problems. For example, setting business goals that are too ambitious, inflexible, or not in line with the company vision can end up being counterproductive. 

Here are some common challenges teams face when setting business goals: 

• Having a Narrow Focus: One of the greatest benefits of setting business goals is how doing so can focus your team. That said, this can also be a drawback, as such focus on a single goal can narrow the team’s perspective and make people less able to adapt to change or recognize and seize unexpected opportunities. 
• Being Overly Ambitious: It’s important to be ambitious, but some goals are simply too lofty. If a goal is impossible to hit, it can be demoralizing. 
• Not Being Ambitious Enough: The opposite problem is when companies are too modest with their goal-setting. Goals should be realistic but challenging. Teams that prioritize the former while ignoring the latter will have problems with motivation and momentum.
• Facing Unexpected Obstacles: If something happens that suddenly derails progress toward a goal, it can be a huge blow to a company. Learn about project risk management to better manage uncertainty in your projects. 
• Having Unclear Objectives: Goals that are vague or unquantifiable will not be as effective as clear, measurable goals. Use frameworks such as SMART goals or OKRs to make sure your goals are clear. 
• Losing Motivation: Teams can lose sight of their goals over time, especially with long-term goals. Be sure to review and assess progress toward goals regularly to keep your long-term vision front of mind.

Why You Need Business Goals

Every business needs to set clear goals in order to succeed. Business goals provide direction, encourage focus, improve morale, and spur growth. We’ve gathered some common benefits of goal-setting for your business. 

Here are some benefits you can expect from setting business goals:

• More Clarity: Business goals ensure that everyone is moving toward a determined end point. Companies with clear business goals have teams that agree on what is important and what everyone should be working toward. 
• Increased Focus: Business goals encourage focus, which improves performance and increases productivity. 
• Faster Growth: Business goals help companies expand and thrive. “Setting goals and objectives for your business will help you grow it more quickly,” says Bitton. “Your potential for growth increases as you consistently accomplish your goals and objectives.”
• Improved Morale: Everyone is happier when they are working toward a tangible goal. Companies with clear business goals have employees that are more motivated and fulfilled at work. Plus, measuring progress toward specific goals makes it easier to notice and acknowledge everyone’s successes. 
• More Accountability: Having tangible goals means that everyone can see whether or not their work is effective at making progress toward those goals.
• Better Decision-Making: Business goals help teams prioritize tasks and make tough decisions. “You gain perspective on your entire business, which makes it easier for you to make smart decisions,” says Bitton. “You are forming a clear vision for the direction you want your business to go, which facilitates the efficient distribution of resources, the development of strategies, and the prioritization of tasks.”

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11.4 The Business Plan

Learning objectives.

By the end of this section, you will be able to:

• Describe the different purposes of a business plan
• Describe and develop the components of a brief business plan
• Describe and develop the components of a full business plan

Unlike the brief or lean formats introduced so far, the business plan is a formal document used for the long-range planning of a company’s operation. It typically includes background information, financial information, and a summary of the business. Investors nearly always request a formal business plan because it is an integral part of their evaluation of whether to invest in a company. Although nothing in business is permanent, a business plan typically has components that are more “set in stone” than a business model canvas , which is more commonly used as a first step in the planning process and throughout the early stages of a nascent business. A business plan is likely to describe the business and industry, market strategies, sales potential, and competitive analysis, as well as the company’s long-term goals and objectives. An in-depth formal business plan would follow at later stages after various iterations to business model canvases. The business plan usually projects financial data over a three-year period and is typically required by banks or other investors to secure funding. The business plan is a roadmap for the company to follow over multiple years.

Some entrepreneurs prefer to use the canvas process instead of the business plan, whereas others use a shorter version of the business plan, submitting it to investors after several iterations. There are also entrepreneurs who use the business plan earlier in the entrepreneurial process, either preceding or concurrently with a canvas. For instance, Chris Guillebeau has a one-page business plan template in his book The $100 Startup . 48 His version is basically an extension of a napkin sketch without the detail of a full business plan. As you progress, you can also consider a brief business plan (about two pages)—if you want to support a rapid business launch—and/or a standard business plan.

As with many aspects of entrepreneurship, there are no clear hard and fast rules to achieving entrepreneurial success. You may encounter different people who want different things (canvas, summary, full business plan), and you also have flexibility in following whatever tool works best for you. Like the canvas, the various versions of the business plan are tools that will aid you in your entrepreneurial endeavor.

Business Plan Overview

Most business plans have several distinct sections ( Figure 11.16 ). The business plan can range from a few pages to twenty-five pages or more, depending on the purpose and the intended audience. For our discussion, we’ll describe a brief business plan and a standard business plan. If you are able to successfully design a business model canvas, then you will have the structure for developing a clear business plan that you can submit for financial consideration.

Both types of business plans aim at providing a picture and roadmap to follow from conception to creation. If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept.

The full business plan is aimed at executing the vision concept, dealing with the proverbial devil in the details. Developing a full business plan will assist those of you who need a more detailed and structured roadmap, or those of you with little to no background in business. The business planning process includes the business model, a feasibility analysis, and a full business plan, which we will discuss later in this section. Next, we explore how a business plan can meet several different needs.

Purposes of a Business Plan

A business plan can serve many different purposes—some internal, others external. As we discussed previously, you can use a business plan as an internal early planning device, an extension of a napkin sketch, and as a follow-up to one of the canvas tools. A business plan can be an organizational roadmap , that is, an internal planning tool and working plan that you can apply to your business in order to reach your desired goals over the course of several years. The business plan should be written by the owners of the venture, since it forces a firsthand examination of the business operations and allows them to focus on areas that need improvement.

Refer to the business venture throughout the document. Generally speaking, a business plan should not be written in the first person.

A major external purpose for the business plan is as an investment tool that outlines financial projections, becoming a document designed to attract investors. In many instances, a business plan can complement a formal investor’s pitch. In this context, the business plan is a presentation plan, intended for an outside audience that may or may not be familiar with your industry, your business, and your competitors.

You can also use your business plan as a contingency plan by outlining some “what-if” scenarios and exploring how you might respond if these scenarios unfold. Pretty Young Professional launched in November 2010 as an online resource to guide an emerging generation of female leaders. The site focused on recent female college graduates and current students searching for professional roles and those in their first professional roles. It was founded by four friends who were coworkers at the global consultancy firm McKinsey. But after positions and equity were decided among them, fundamental differences of opinion about the direction of the business emerged between two factions, according to the cofounder and former CEO Kathryn Minshew . “I think, naively, we assumed that if we kicked the can down the road on some of those things, we’d be able to sort them out,” Minshew said. Minshew went on to found a different professional site, The Muse , and took much of the editorial team of Pretty Young Professional with her. 49 Whereas greater planning potentially could have prevented the early demise of Pretty Young Professional, a change in planning led to overnight success for Joshua Esnard and The Cut Buddy team. Esnard invented and patented the plastic hair template that he was selling online out of his Fort Lauderdale garage while working a full-time job at Broward College and running a side business. Esnard had hundreds of boxes of Cut Buddies sitting in his home when he changed his marketing plan to enlist companies specializing in making videos go viral. It worked so well that a promotional video for the product garnered 8 million views in hours. The Cut Buddy sold over 4,000 products in a few hours when Esnard only had hundreds remaining. Demand greatly exceeded his supply, so Esnard had to scramble to increase manufacturing and offered customers two-for-one deals to make up for delays. This led to selling 55,000 units, generating $700,000 in sales in 2017. 50 After appearing on Shark Tank and landing a deal with Daymond John that gave the “shark” a 20-percent equity stake in return for $300,000, The Cut Buddy has added new distribution channels to include retail sales along with online commerce. Changing one aspect of a business plan—the marketing plan—yielded success for The Cut Buddy.

Link to Learning

Watch this video of Cut Buddy’s founder, Joshua Esnard, telling his company’s story to learn more.

If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept. This version is used to interest potential investors, employees, and other stakeholders, and will include a financial summary “box,” but it must have a disclaimer, and the founder/entrepreneur may need to have the people who receive it sign a nondisclosure agreement (NDA) . The full business plan is aimed at executing the vision concept, providing supporting details, and would be required by financial institutions and others as they formally become stakeholders in the venture. Both are aimed at providing a picture and roadmap to go from conception to creation.

Types of Business Plans

The brief business plan is similar to an extended executive summary from the full business plan. This concise document provides a broad overview of your entrepreneurial concept, your team members, how and why you will execute on your plans, and why you are the ones to do so. You can think of a brief business plan as a scene setter or—since we began this chapter with a film reference—as a trailer to the full movie. The brief business plan is the commercial equivalent to a trailer for Field of Dreams , whereas the full plan is the full-length movie equivalent.

Brief Business Plan or Executive Summary

As the name implies, the brief business plan or executive summary summarizes key elements of the entire business plan, such as the business concept, financial features, and current business position. The executive summary version of the business plan is your opportunity to broadly articulate the overall concept and vision of the company for yourself, for prospective investors, and for current and future employees.

A typical executive summary is generally no longer than a page, but because the brief business plan is essentially an extended executive summary, the executive summary section is vital. This is the “ask” to an investor. You should begin by clearly stating what you are asking for in the summary.

In the business concept phase, you’ll describe the business, its product, and its markets. Describe the customer segment it serves and why your company will hold a competitive advantage. This section may align roughly with the customer segments and value-proposition segments of a canvas.

Next, highlight the important financial features, including sales, profits, cash flows, and return on investment. Like the financial portion of a feasibility analysis, the financial analysis component of a business plan may typically include items like a twelve-month profit and loss projection, a three- or four-year profit and loss projection, a cash-flow projection, a projected balance sheet, and a breakeven calculation. You can explore a feasibility study and financial projections in more depth in the formal business plan. Here, you want to focus on the big picture of your numbers and what they mean.

The current business position section can furnish relevant information about you and your team members and the company at large. This is your opportunity to tell the story of how you formed the company, to describe its legal status (form of operation), and to list the principal players. In one part of the extended executive summary, you can cover your reasons for starting the business: Here is an opportunity to clearly define the needs you think you can meet and perhaps get into the pains and gains of customers. You also can provide a summary of the overall strategic direction in which you intend to take the company. Describe the company’s mission, vision, goals and objectives, overall business model, and value proposition.

Rice University’s Student Business Plan Competition, one of the largest and overall best-regarded graduate school business-plan competitions (see Telling Your Entrepreneurial Story and Pitching the Idea ), requires an executive summary of up to five pages to apply. 51 , 52 Its suggested sections are shown in Table 11.2 .

Are You Ready?

Create a brief business plan.

Fill out a canvas of your choosing for a well-known startup: Uber, Netflix, Dropbox, Etsy, Airbnb, Bird/Lime, Warby Parker, or any of the companies featured throughout this chapter or one of your choice. Then create a brief business plan for that business. See if you can find a version of the company’s actual executive summary, business plan, or canvas. Compare and contrast your vision with what the company has articulated.

• These companies are well established but is there a component of what you charted that you would advise the company to change to ensure future viability?
• Map out a contingency plan for a “what-if” scenario if one key aspect of the company or the environment it operates in were drastically is altered?

Full Business Plan

Even full business plans can vary in length, scale, and scope. Rice University sets a ten-page cap on business plans submitted for the full competition. The IndUS Entrepreneurs , one of the largest global networks of entrepreneurs, also holds business plan competitions for students through its Tie Young Entrepreneurs program. In contrast, business plans submitted for that competition can usually be up to twenty-five pages. These are just two examples. Some components may differ slightly; common elements are typically found in a formal business plan outline. The next section will provide sample components of a full business plan for a fictional business.

Executive Summary

The executive summary should provide an overview of your business with key points and issues. Because the summary is intended to summarize the entire document, it is most helpful to write this section last, even though it comes first in sequence. The writing in this section should be especially concise. Readers should be able to understand your needs and capabilities at first glance. The section should tell the reader what you want and your “ask” should be explicitly stated in the summary.

Describe your business, its product or service, and the intended customers. Explain what will be sold, who it will be sold to, and what competitive advantages the business has. Table 11.3 shows a sample executive summary for the fictional company La Vida Lola.

Business Description

This section describes the industry, your product, and the business and success factors. It should provide a current outlook as well as future trends and developments. You also should address your company’s mission, vision, goals, and objectives. Summarize your overall strategic direction, your reasons for starting the business, a description of your products and services, your business model, and your company’s value proposition. Consider including the Standard Industrial Classification/North American Industry Classification System (SIC/NAICS) code to specify the industry and insure correct identification. The industry extends beyond where the business is located and operates, and should include national and global dynamics. Table 11.4 shows a sample business description for La Vida Lola.

Industry Analysis and Market Strategies

Here you should define your market in terms of size, structure, growth prospects, trends, and sales potential. You’ll want to include your TAM and forecast the SAM . (Both these terms are discussed in Conducting a Feasibility Analysis .) This is a place to address market segmentation strategies by geography, customer attributes, or product orientation. Describe your positioning relative to your competitors’ in terms of pricing, distribution, promotion plan, and sales potential. Table 11.5 shows an example industry analysis and market strategy for La Vida Lola.

Competitive Analysis

The competitive analysis is a statement of the business strategy as it relates to the competition. You want to be able to identify who are your major competitors and assess what are their market shares, markets served, strategies employed, and expected response to entry? You likely want to conduct a classic SWOT analysis (Strengths Weaknesses Opportunities Threats) and complete a competitive-strength grid or competitive matrix. Outline your company’s competitive strengths relative to those of the competition in regard to product, distribution, pricing, promotion, and advertising. What are your company’s competitive advantages and their likely impacts on its success? The key is to construct it properly for the relevant features/benefits (by weight, according to customers) and how the startup compares to incumbents. The competitive matrix should show clearly how and why the startup has a clear (if not currently measurable) competitive advantage. Some common features in the example include price, benefits, quality, type of features, locations, and distribution/sales. Sample templates are shown in Figure 11.17 and Figure 11.18 . A competitive analysis helps you create a marketing strategy that will identify assets or skills that your competitors are lacking so you can plan to fill those gaps, giving you a distinct competitive advantage. When creating a competitor analysis, it is important to focus on the key features and elements that matter to customers, rather than focusing too heavily on the entrepreneur’s idea and desires.

Operations and Management Plan

In this section, outline how you will manage your company. Describe its organizational structure. Here you can address the form of ownership and, if warranted, include an organizational chart/structure. Highlight the backgrounds, experiences, qualifications, areas of expertise, and roles of members of the management team. This is also the place to mention any other stakeholders, such as a board of directors or advisory board(s), and their relevant relationship to the founder, experience and value to help make the venture successful, and professional service firms providing management support, such as accounting services and legal counsel.

Table 11.6 shows a sample operations and management plan for La Vida Lola.

Marketing Plan

Here you should outline and describe an effective overall marketing strategy for your venture, providing details regarding pricing, promotion, advertising, distribution, media usage, public relations, and a digital presence. Fully describe your sales management plan and the composition of your sales force, along with a comprehensive and detailed budget for the marketing plan. Table 11.7 shows a sample marketing plan for La Vida Lola.

Financial Plan

A financial plan seeks to forecast revenue and expenses; project a financial narrative; and estimate project costs, valuations, and cash flow projections. This section should present an accurate, realistic, and achievable financial plan for your venture (see Entrepreneurial Finance and Accounting for detailed discussions about conducting these projections). Include sales forecasts and income projections, pro forma financial statements ( Building the Entrepreneurial Dream Team , a breakeven analysis, and a capital budget. Identify your possible sources of financing (discussed in Conducting a Feasibility Analysis ). Figure 11.19 shows a template of cash-flow needs for La Vida Lola.

Entrepreneur In Action

Laughing man coffee.

Hugh Jackman ( Figure 11.20 ) may best be known for portraying a comic-book superhero who used his mutant abilities to protect the world from villains. But the Wolverine actor is also working to make the planet a better place for real, not through adamantium claws but through social entrepreneurship.

A love of java jolted Jackman into action in 2009, when he traveled to Ethiopia with a Christian humanitarian group to shoot a documentary about the impact of fair-trade certification on coffee growers there. He decided to launch a business and follow in the footsteps of the late Paul Newman, another famous actor turned philanthropist via food ventures.

Jackman launched Laughing Man Coffee two years later; he sold the line to Keurig in 2015. One Laughing Man Coffee café in New York continues to operate independently, investing its proceeds into charitable programs that support better housing, health, and educational initiatives within fair-trade farming communities. 55 Although the New York location is the only café, the coffee brand is still distributed, with Keurig donating an undisclosed portion of Laughing Man proceeds to those causes (whereas Jackman donates all his profits). The company initially donated its profits to World Vision, the Christian humanitarian group Jackman accompanied in 2009. In 2017, it created the Laughing Man Foundation to be more active with its money management and distribution.

• You be the entrepreneur. If you were Jackman, would you have sold the company to Keurig? Why or why not?
• Would you have started the Laughing Man Foundation?
• What else can Jackman do to aid fair-trade practices for coffee growers?

What Can You Do?

Textbooks for change.

Founded in 2014, Textbooks for Change uses a cross-compensation model, in which one customer segment pays for a product or service, and the profit from that revenue is used to provide the same product or service to another, underserved segment. Textbooks for Change partners with student organizations to collect used college textbooks, some of which are re-sold while others are donated to students in need at underserved universities across the globe. The organization has reused or recycled 250,000 textbooks, providing 220,000 students with access through seven campus partners in East Africa. This B-corp social enterprise tackles a problem and offers a solution that is directly relevant to college students like yourself. Have you observed a problem on your college campus or other campuses that is not being served properly? Could it result in a social enterprise?

Work It Out

Franchisee set out.

A franchisee of East Coast Wings, a chain with dozens of restaurants in the United States, has decided to part ways with the chain. The new store will feature the same basic sports-bar-and-restaurant concept and serve the same basic foods: chicken wings, burgers, sandwiches, and the like. The new restaurant can’t rely on the same distributors and suppliers. A new business plan is needed.

• What steps should the new restaurant take to create a new business plan?
• Should it attempt to serve the same customers? Why or why not?

This New York Times video, “An Unlikely Business Plan,” describes entrepreneurial resurgence in Detroit, Michigan.

• 48 Chris Guillebeau. The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future . New York: Crown Business/Random House, 2012.
• 49 Jonathan Chan. “What These 4 Startup Case Studies Can Teach You about Failure.” Foundr.com . July 12, 2015. https://foundr.com/4-startup-case-studies-failure/
• 50 Amy Feldman. “Inventor of the Cut Buddy Paid YouTubers to Spark Sales. He Wasn’t Ready for a Video to Go Viral.” Forbes. February 15, 2017. https://www.forbes.com/sites/forbestreptalks/2017/02/15/inventor-of-the-cut-buddy-paid-youtubers-to-spark-sales-he-wasnt-ready-for-a-video-to-go-viral/#3eb540ce798a
• 51 Jennifer Post. “National Business Plan Competitions for Entrepreneurs.” Business News Daily . August 30, 2018. https://www.businessnewsdaily.com/6902-business-plan-competitions-entrepreneurs.html
• 52 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition . March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf
• 53 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition. March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf; Based on 2019 RBPC Competition Rules and Format April 4–6, 2019. https://rbpc.rice.edu/sites/g/files/bxs806/f/2019-RBPC-Competition-Rules%20-Format.pdf
• 54 Foodstart. http://foodstart.com
• 55 “Hugh Jackman Journey to Starting a Social Enterprise Coffee Company.” Giving Compass. April 8, 2018. https://givingcompass.org/article/hugh-jackman-journey-to-starting-a-social-enterprise-coffee-company/

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• Business strategy |
• What is strategic planning? A 5-step gu ...

What is strategic planning? A 5-step guide

Strategic planning is a process through which business leaders map out their vision for their organization’s growth and how they’re going to get there. In this article, we'll guide you through the strategic planning process, including why it's important, the benefits and best practices, and five steps to get you from beginning to end.

Strategic planning is a process through which business leaders map out their vision for their organization’s growth and how they’re going to get there. The strategic planning process informs your organization’s decisions, growth, and goals.

Strategic planning helps you clearly define your company’s long-term objectives—and maps how your short-term goals and work will help you achieve them. This, in turn, gives you a clear sense of where your organization is going and allows you to ensure your teams are working on projects that make the most impact. Think of it this way—if your goals and objectives are your destination on a map, your strategic plan is your navigation system.

In this article, we walk you through the 5-step strategic planning process and show you how to get started developing your own strategic plan.

How to build an organizational strategy

Get our free ebook and learn how to bridge the gap between mission, strategic goals, and work at your organization.

What is strategic planning?

Strategic planning is a business process that helps you define and share the direction your company will take in the next three to five years. During the strategic planning process, stakeholders review and define the organization’s mission and goals, conduct competitive assessments, and identify company goals and objectives. The product of the planning cycle is a strategic plan, which is shared throughout the company.

What is a strategic plan?

A strategic plan is the end result of the strategic planning process. At its most basic, it’s a tool used to define your organization’s goals and what actions you’ll take to achieve them.

Typically, your strategic plan should include: 

Your company’s mission statement

Your organizational goals, including your long-term goals and short-term, yearly objectives

Any plan of action, tactics, or approaches you plan to take to meet those goals

What are the benefits of strategic planning?

Strategic planning can help with goal setting and decision-making by allowing you to map out how your company will move toward your organization’s vision and mission statements in the next three to five years. Let’s circle back to our map metaphor. If you think of your company trajectory as a line on a map, a strategic plan can help you better quantify how you’ll get from point A (where you are now) to point B (where you want to be in a few years).

When you create and share a clear strategic plan with your team, you can:

Build a strong organizational culture by clearly defining and aligning on your organization’s mission, vision, and goals.

Align everyone around a shared purpose and ensure all departments and teams are working toward a common objective.

Proactively set objectives to help you get where you want to go and achieve desired outcomes.

Promote a long-term vision for your company rather than focusing primarily on short-term gains.

Ensure resources are allocated around the most high-impact priorities.

Define long-term goals and set shorter-term goals to support them.

Assess your current situation and identify any opportunities—or threats—allowing your organization to mitigate potential risks.

Create a proactive business culture that enables your organization to respond more swiftly to emerging market changes and opportunities.

What are the 5 steps in strategic planning?

The strategic planning process involves a structured methodology that guides the organization from vision to implementation. The strategic planning process starts with assembling a small, dedicated team of key strategic planners—typically five to 10 members—who will form the strategic planning, or management, committee. This team is responsible for gathering crucial information, guiding the development of the plan, and overseeing strategy execution.

Once you’ve established your management committee, you can get to work on the planning process. 

Step 1: Assess your current business strategy and business environment

Before you can define where you’re going, you first need to define where you are. Understanding the external environment, including market trends and competitive landscape, is crucial in the initial assessment phase of strategic planning.

To do this, your management committee should collect a variety of information from additional stakeholders, like employees and customers. In particular, plan to gather:

Relevant industry and market data to inform any market opportunities, as well as any potential upcoming threats in the near future.

Customer insights to understand what your customers want from your company—like product improvements or additional services.

Employee feedback that needs to be addressed—whether about the product, business practices, or the day-to-day company culture.

Consider different types of strategic planning tools and analytical techniques to gather this information, such as:

A balanced scorecard to help you evaluate four major elements of a business: learning and growth, business processes, customer satisfaction, and financial performance.

A SWOT analysis to help you assess both current and future potential for the business (you’ll return to this analysis periodically during the strategic planning process). 

To fill out each letter in the SWOT acronym, your management committee will answer a series of questions:

What does your organization currently do well?

What separates you from your competitors?

What are your most valuable internal resources?

What tangible assets do you have?

What is your biggest strength? 

Weaknesses:

What does your organization do poorly?

What do you currently lack (whether that’s a product, resource, or process)?

What do your competitors do better than you?

What, if any, limitations are holding your organization back?

What processes or products need improvement? 

Opportunities:

What opportunities does your organization have?

How can you leverage your unique company strengths?

Are there any trends that you can take advantage of?

How can you capitalize on marketing or press opportunities?

Is there an emerging need for your product or service? 

What emerging competitors should you keep an eye on?

Are there any weaknesses that expose your organization to risk?

Have you or could you experience negative press that could reduce market share?

Is there a chance of changing customer attitudes towards your company? 

Step 2: Identify your company’s goals and objectives

To begin strategy development, take into account your current position, which is where you are now. Then, draw inspiration from your vision, mission, and current position to identify and define your goals—these are your final destination. 

To develop your strategy, you’re essentially pulling out your compass and asking, “Where are we going next?” “What’s the ideal future state of this company?” This can help you figure out which path you need to take to get there.

During this phase of the planning process, take inspiration from important company documents, such as:

Your mission statement, to understand how you can continue moving towards your organization’s core purpose.

Your vision statement, to clarify how your strategic plan fits into your long-term vision.

Your company values, to guide you towards what matters most towards your company.

Your competitive advantages, to understand what unique benefit you offer to the market.

Your long-term goals, to track where you want to be in five or 10 years.

Your financial forecast and projection, to understand where you expect your financials to be in the next three years, what your expected cash flow is, and what new opportunities you will likely be able to invest in.

Step 3: Develop your strategic plan and determine performance metrics

Now that you understand where you are and where you want to go, it’s time to put pen to paper. Take your current business position and strategy into account, as well as your organization’s goals and objectives, and build out a strategic plan for the next three to five years. Keep in mind that even though you’re creating a long-term plan, parts of your plan should be created or revisited as the quarters and years go on.

As you build your strategic plan, you should define:

Company priorities for the next three to five years, based on your SWOT analysis and strategy.

Yearly objectives for the first year. You don’t need to define your objectives for every year of the strategic plan. As the years go on, create new yearly objectives that connect back to your overall strategic goals . 

Related key results and KPIs. Some of these should be set by the management committee, and some should be set by specific teams that are closer to the work. Make sure your key results and KPIs are measurable and actionable. These KPIs will help you track progress and ensure you’re moving in the right direction.

Budget for the next year or few years. This should be based on your financial forecast as well as your direction. Do you need to spend aggressively to develop your product? Build your team? Make a dent with marketing? Clarify your most important initiatives and how you’ll budget for those.

A high-level project roadmap . A project roadmap is a tool in project management that helps you visualize the timeline of a complex initiative, but you can also create a very high-level project roadmap for your strategic plan. Outline what you expect to be working on in certain quarters or years to make the plan more actionable and understandable.

Step 4: Implement and share your plan

Now it’s time to put your plan into action. Strategy implementation involves clear communication across your entire organization to make sure everyone knows their responsibilities and how to measure the plan’s success. 

Make sure your team (especially senior leadership) has access to the strategic plan, so they can understand how their work contributes to company priorities and the overall strategy map. We recommend sharing your plan in the same tool you use to manage and track work, so you can more easily connect high-level objectives to daily work. If you don’t already, consider using a work management platform .  

A few tips to make sure your plan will be executed without a hitch: 

Communicate clearly to your entire organization throughout the implementation process, to ensure all team members understand the strategic plan and how to implement it effectively. 

Define what “success” looks like by mapping your strategic plan to key performance indicators.

Ensure that the actions outlined in the strategic plan are integrated into the daily operations of the organization, so that every team member's daily activities are aligned with the broader strategic objectives.

Utilize tools and software—like a work management platform—that can aid in implementing and tracking the progress of your plan.

Regularly monitor and share the progress of the strategic plan with the entire organization, to keep everyone informed and reinforce the importance of the plan.

Establish regular check-ins to monitor the progress of your strategic plan and make adjustments as needed. 

Step 5: Revise and restructure as needed

Once you’ve created and implemented your new strategic framework, the final step of the planning process is to monitor and manage your plan.

Remember, your strategic plan isn’t set in stone. You’ll need to revisit and update the plan if your company changes directions or makes new investments. As new market opportunities and threats come up, you’ll likely want to tweak your strategic plan. Make sure to review your plan regularly—meaning quarterly and annually—to ensure it’s still aligned with your organization’s vision and goals.

Keep in mind that your plan won’t last forever, even if you do update it frequently. A successful strategic plan evolves with your company’s long-term goals. When you’ve achieved most of your strategic goals, or if your strategy has evolved significantly since you first made your plan, it might be time to create a new one.

Build a smarter strategic plan with a work management platform

To turn your company strategy into a plan—and ultimately, impact—make sure you’re proactively connecting company objectives to daily work. When you can clarify this connection, you’re giving your team members the context they need to get their best work done. 

A work management platform plays a pivotal role in this process. It acts as a central hub for your strategic plan, ensuring that every task and project is directly tied to your broader company goals. This alignment is crucial for visibility and coordination, allowing team members to see how their individual efforts contribute to the company’s success. 

By leveraging such a platform, you not only streamline workflow and enhance team productivity but also align every action with your strategic objectives—allowing teams to drive greater impact and helping your company move toward goals more effectively. 

Strategic planning FAQs

Still have questions about strategic planning? We have answers.

Why do I need a strategic plan?

A strategic plan is one of many tools you can use to plan and hit your goals. It helps map out strategic objectives and growth metrics that will help your company be successful.

When should I create a strategic plan?

You should aim to create a strategic plan every three to five years, depending on your organization’s growth speed.

Since the point of a strategic plan is to map out your long-term goals and how you’ll get there, you should create a strategic plan when you’ve met most or all of them. You should also create a strategic plan any time you’re going to make a large pivot in your organization’s mission or enter new markets. 

What is a strategic planning template?

A strategic planning template is a tool organizations can use to map out their strategic plan and track progress. Typically, a strategic planning template houses all the components needed to build out a strategic plan, including your company’s vision and mission statements, information from any competitive analyses or SWOT assessments, and relevant KPIs.

What’s the difference between a strategic plan vs. business plan?

A business plan can help you document your strategy as you’re getting started so every team member is on the same page about your core business priorities and goals. This tool can help you document and share your strategy with key investors or stakeholders as you get your business up and running.

You should create a business plan when you’re: 

Just starting your business

Significantly restructuring your business

If your business is already established, you should create a strategic plan instead of a business plan. Even if you’re working at a relatively young company, your strategic plan can build on your business plan to help you move in the right direction. During the strategic planning process, you’ll draw from a lot of the fundamental business elements you built early on to establish your strategy for the next three to five years.

What’s the difference between a strategic plan vs. mission and vision statements?

Your strategic plan, mission statement, and vision statements are all closely connected. In fact, during the strategic planning process, you will take inspiration from your mission and vision statements in order to build out your strategic plan.

Simply put: 

A mission statement summarizes your company’s purpose.

A vision statement broadly explains how you’ll reach your company’s purpose.

A strategic plan pulls in inspiration from your mission and vision statements and outlines what actions you’re going to take to move in the right direction. 

For example, if your company produces pet safety equipment, here’s how your mission statement, vision statement, and strategic plan might shake out:

Mission statement: “To ensure the safety of the world’s animals.” 

Vision statement: “To create pet safety and tracking products that are effortless to use.” 

Your strategic plan would outline the steps you’re going to take in the next few years to bring your company closer to your mission and vision. For example, you develop a new pet tracking smart collar or improve the microchipping experience for pet owners. 

What’s the difference between a strategic plan vs. company objectives?

Company objectives are broad goals. You should set these on a yearly or quarterly basis (if your organization moves quickly). These objectives give your team a clear sense of what you intend to accomplish for a set period of time. 

Your strategic plan is more forward-thinking than your company goals, and it should cover more than one year of work. Think of it this way: your company objectives will move the needle towards your overall strategy—but your strategic plan should be bigger than company objectives because it spans multiple years.

What’s the difference between a strategic plan vs. a business case?

A business case is a document to help you pitch a significant investment or initiative for your company. When you create a business case, you’re outlining why this investment is a good idea, and how this large-scale project will positively impact the business. 

You might end up building business cases for things on your strategic plan’s roadmap—but your strategic plan should be bigger than that. This tool should encompass multiple years of your roadmap, across your entire company—not just one initiative.

What’s the difference between a strategic plan vs. a project plan?

A strategic plan is a company-wide, multi-year plan of what you want to accomplish in the next three to five years and how you plan to accomplish that. A project plan, on the other hand, outlines how you’re going to accomplish a specific project. This project could be one of many initiatives that contribute to a specific company objective which, in turn, is one of many objectives that contribute to your strategic plan. 

What’s the difference between strategic management vs. strategic planning?

A strategic plan is a tool to define where your organization wants to go and what actions you need to take to achieve those goals. Strategic planning is the process of creating a plan in order to hit your strategic objectives.

Strategic management includes the strategic planning process, but also goes beyond it. In addition to planning how you will achieve your big-picture goals, strategic management also helps you organize your resources and figure out the best action plans for success. 

Related resources

Unmanaged business goals don’t work. Here’s what does.

How Asana uses work management to effectively manage goals

Beat thrash for good: 4 organizational planning challenges and solutions

How Asana uses work management to streamline project intake processes

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Vision, Mission, Objectives, Strategies and Tactics

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Vision, Mission, Objectives, Strategies, and Tactics – These are 5 statements which form the two aspects of the business-

• What the organizations want to achieve – reflected by the Vision mission and objectives of companies.
• And how they are going to achieve the above “what ”- reflected by the Strategies and Tactics. These are long term and short-term implementation plans respectively.

Organizations gain real strength when these statements show:

• Completeness, and are consistent with each other.

It implies that there should be an alignment between these statements. You can ensure this alignment by the assessment of:

• Definition:   If these statements are defined for the foundation of organization success?
• Clarity: If these provide a direction and plan for the work, organizational resources do?
• Communication:  Are Organisation resources aware of these statements? And use them as a context of the work, they do?
• Commitment:  If these statements make people supportive of the organization’s intent? And, if they agreed to the content of these statements?

If your assessment says “Yes” on the above-mentioned parameters- it significantly ensures internal organization capability.

And, if any of the above is lacking, then there is a potential of weakness. This weakness limits and undermines organization success. These statements are vital in assessing the internal capabilities and limitations of the organization.

Let’s see how these statements create a foundation of organization Success? I am beginning with the comprehension of these statements.

What are the vision mission and objective of Companies?

A vision is a Big Picture of “What” the organization wants to achieve in Future. It should inspire people in the organization. It excites people to be part of “What.” And, also motivate to put their energy and time to achieve the future. How do you write a good vision statement? What does a vision stamen include? Let’s take an example of an agriculture business:

“A Vibrant Economy is driven by value-added agriculture” Here the Vibrant Economy has the ability to inspire the people involved in this agricultural business. A good vision statement inspires to create a movement. It describes the desired outcome to invoke a mental image of the organization.

2. Mission:

A Mission is about what the organization does to achieve the vision.  A mission is an action statement to achieve the vision. A mission statement is not required to be inspirational. Instead, it provides a clear focus on what an organization does and what it doesn’t.

What should be included in a mission statement? What do you think a good mission statement can look like for the above vision statement?

Let’s see the below example…

“To create and facilitate the development of value-added agriculture”

Here “Create and facilitate” are two clear focus areas. The organization put its energy into these two areas. The organization makes efforts for the development (Create) and to ease (facilitate) the agriculture business. And, whatever is not mentioned here, the organization is not involved.  It is a clear direction about what the organization does and what it doesn’t.

A mission statement is simple, direct and operative. Now the question is – how do you write a powerful mission statement? What makes an effective mission statement? Let’s see the following characteristics of a good mission statement:

• Short: The mission  statement should be easy to remember.  Each person in organizations should be aware of the mission statement to use in context with the work he/she does.
• Simple: Mission statement language should be of everyday life. We do not use words like stakeholder values, financial goals, and best practices in daily life. For example, a mission statement – “Help people in achieving work using best practices.” How many people dream about best practices? The answer is very few; do you believe, people talk in such a language. The answer is ‘NO.’
• Operative: A mission statement should provide a clear direction. It should focus on what an organization does.  It also gives a clear route about initiative and resource allocation.

So, what kinds of resources needed for the mission statement mentioned above for the agriculture business?

• Probably SME, who can provide their services for the development and facilitation of the agriculture business.
• And farmers involved for the financial support in the venture.

A mission statement should help to understand:

• “Who we are”,
• “What we do”
• and to “which industry we belong to”

For example, mission statements like “Increasing customer satisfaction”.  Well, it is impossible, anyways – does it provide to which industry a mission belongs to? Or what the organization controls? The answer is no, and hence we cannot claim it as a mission statement. An organization should try to find out a mission statement, which can drive them.

3. Goals & Objectives:

Goals are statements of mileposts to achieve the vision.  Goals describe – what you want to achieve through your efforts.

And, an objective is a time-sensitive statement to achieve the goals. We defined it in measurable terms. Goals for the above-mentioned vision of agriculture business can be defined as, but not limited to:

• Improve profitability
• Increase volume
• Provide stability

A goal is a broad definition, saying “improve profitability”.  It lacks the specifics and defined in general and broad terms. Objectives, on the other hand, are quite specific and further define the goal. To continue with ‘profitability’ example, objectives can be defined as:

15k$ net profit as % of the sale in a year

10k$ net profit as % of investment in a year.

Here, the question is – How do you set a good objective. What are the smart objectives used for? Well, while explaining, objectives a SMART acronym is commonly used:

• Specific: It is entirely job-related. In the above example, “sales” and “investment” are related to the job.
• Measurable : Objectives are always defined in measurable terms. We can measure the above objectives using a target of 10k$ and 15k$ profit.
• Attainable : Objectives should be attainable within the provided environment and resources. Organizations need to analyze what is required to achieve defined objectives and need to need to make sure it continuously.
• Relevant:   Objectives should be aligned with goals. These goals are further aligned with the mission and vision of the organization.
• Time-Bounded : Objectives should be achievable within the provided time period and in our example, we identified time ‘a year’.

So without question, goals and objectives are similar (not same) and complement each other. With goals, there is no pressure to be specific, and in fact, goals are open-ended. Setting goals are useful as a broad outline. Yet, due to its fundamental nature of being broad and open-ended, these are not the ideal way to achieve something.

Whenever you want to achieve something – define a goal and then set a series of objectives to achieve those goals. To summarize goals are broad direction setting statements, objectives are more specific.  And both are designed to get you to take action.

4. Strategies:

Strategies are long term implementation plans to achieve the goals and objectives. These statements define how you can succeed in achieving your mission and stay along in the completion.  Strategies are likely to be defined following a SWOT analysis as both external and internal environment assessment is needed as an input to develop strategies.

How do you write an organizational strategy? Strategic options may include:

• The development of market or product or
• In some diversified cases, both the market and product development.

Example strategic options like:

• Increase Market (sale in customers),
• New Product (like product enhancement, product line extension, and products at different quality levels) and
• New distribution channel

These are examples of strategies to achieve goals and objectives. A strategy like- design social media promotion for the next year can be identified for the above-mentioned objectives. We can define one or many strategies for a combination of goals and objectives.

5. Tactics:

Tactics are short term implementation or action plan to deliver the long-term strategy. A grass-root level action plans are defined to ensure daily activities are in line with achieving the relevant strategy(s).

Tactics like a sales staff member are expected to do 10 social media activity daily, could be an example to deliver a long-term strategy.

Once you have defined all these 5 (Vision, Mission, Objectives, Strategies, and Tactics) statements, you will have the foundation of your business. For this reason, we need to know that these five statements are open acted with each other.

You use these statements to assess the internal capabilities and limitations of an organization. Also, you examine these statements for their completeness, clarity, and awareness within organizations. If these qualities are missing, then you need a change to solve the identified organizational level internal weakness.

These statements should provide a clear focus and direction and should serve as an internal strength for the organization.

You may watch and listen to the following video presentation on the difference between Vision, Mission, Objectives, Strategies, and Tactics. This video will give you a walkthrough to write a good vision, mission, goals, and objectives, and will provide you with a fair idea of how these are related to others:

I hope this blog has answered your all queries related to Vision, Mission, Objectives, Strategies, and Tactics.

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Organizational Strategy: Aligning with Business Objectives

Let’s explore the various facets of organizational strategy, from understanding its essence to developing an effective strategic plan that works with your business objectives.

Published by Orgvue   November 20, 2023

Home > Resources > article > Organizational Strategy: Aligning with Business Objectives

In the dynamic landscape of today’s business world, having a well-defined organizational strategy that aligns with your business objectives is paramount. It serves as the roadmap for achieving your goals, navigating change and ensuring your organization’s growth and sustainability.

What is Organizational Strategy?

Before delving into the intricacies, it’s important to define organizational strategy. Put simply, it is the employed strategy used to manage and design the workforce and organization.

It involves a series of decisions and actions that guide the allocation of resources, consolidate departments and expand into new markets. In short, it’s the master plan that harmonizes the internal workings of an organization with external market dynamics.

Organizational strategy is a plan that involves multiple organizational designs depending upon the stage of the strategy. It adapts to the changing needs of a business, which often leads to the implementation of different organizational designs at various stages of the strategy’s execution.

In the early stages, the focus may be on innovation and agility, prompting a flatter and more flexible organizational structure.

As the strategy matures and stabilizes, a more hierarchical structure might be introduced to facilitate efficiency and scalability.

Ultimately, organizational strategy is a reflection of an organization’s ability to evolve and align its design with its strategic objectives at each phase of its journey.

Aligning Organizational Design with Business Strategies

For a strategy to be effective, it must seamlessly integrate with the organization’s design. Organizational design  refers to the structure, roles and responsibilities within an entity. It encompasses how tasks are allocated, information flows and decision-making processes.

Organizational strategy and design are inextricably linked to an organization’s business objectives and overarching strategies. The design of an organization’s structure, processes and culture must align with its strategic goals to ensure efficient execution.

For example, if a business aims to be a customer-centric leader in its industry, its organizational design may prioritize customer service and responsiveness. The strategies devised to achieve specific business objectives often necessitate adjustments to the organizational structure, such as forming cross-functional teams to enhance collaboration or implementing new technology to support digital transformation.

Working hand in hand, organizational strategy and design translate the abstract goals of a business strategy into practical, actionable steps that lead to success.

The close link between organizational strategy and design and business objectives is of paramount importance as it directly impacts an organization’s ability to achieve its goals.

A well-crafted organizational strategy not only outlines the path to success but also defines the necessary changes in design to support it. It ensures that resources are allocated efficiently, roles and responsibilities are well-defined and processes are optimized to deliver on business objectives.

The alignment of organizational design with strategic goals ensures that the workforce operates harmoniously towards a common mission. This synergy streamlines operations, fosters adaptability and enhances an organization’s competitive edge.

Ultimately, the intricate connection between organizational strategy, design and business objectives is the driving force behind an organization’s success, enabling it to navigate complex challenges and seize opportunities effectively.

Adapting to Change

Change is a constant in the business world and an effective organizational strategy must be flexible enough to adapt to it. Whether it’s market fluctuations, technological advancements or shifts in consumer behavior, organizations must remain nimble and responsive.

This adaptability can be achieved by fostering a culture of continuous learning and improvement. It’s about being open to new ideas, experimenting with different approaches and being willing to adjust the strategy as needed.

 This iterative process ensures that your organization can withstand the tests of time and emerge stronger with every challenge.

Identifying the Need for an Organizational Strategy

Effective organizational strategies are not merely a blueprint for success. They’re the compass that guides your business toward its full potential. It ensures that your efforts are coordinated, your resources are optimally utilized and your team is aligned with a common purpose. Strategic planning is the key to unlocking your business’s growth, resilience and long-term success.

The need for a well-defined organizational strategy often arises from a series of key indicators and triggers. Here are some signs that may prompt an organization to consider developing or revising its strategy:

• Stagnation:  When an organization’s growth plateaus, or it struggles to achieve its goals, it’s a clear signal that a strategy realignment is necessary.
• Market Changes:  Changes in the competitive landscape, customer demands or regulatory requirements can necessitate a strategic shift to remain relevant and competitive.
• New Leadership: With a change in leadership, a fresh perspective and vision may require an updated organizational strategy.
• Performance Gaps: If performance metrics consistently fall short of expectations, it’s time to assess and revise the strategy.

Understanding Your Current Situation:

• Conduct a thorough assessment of your organization’s current state, encompassing its structure, processes and culture.
• Gather data on your financial performance, market position and competitive landscape.
• Engage with employees, customers and stakeholders to gain insights into the existing challenges and opportunities.

Determining Goals and Objectives:

• Define clear and specific goals that align with your organization’s mission and vision.
• Ensure your objectives are SMART (Specific, Measurable, Achievable, Relevant and Time-bound).
• Prioritize these goals based on their significance and potential impact on your business.

Analyzing Strengths, Weaknesses, Opportunities and Threats (SWOT):

• Identify your organization’s strengths, focusing on what sets you apart from competitors.
• Recognize weaknesses and areas that need improvement, both internally and externally.
• Explore opportunities in the market, such as emerging trends or untapped customer segments.
• Assess potential threats, including market competition, economic factors and regulatory changes.
• Utilize the SWOT analysis to inform your strategic decisions and the type of organizational strategy you’ll need.

Developing an Effective Strategic Plan for Your Organization

A strategic plan is the guiding light for your organization, helping you navigate through a complex and ever-changing business landscape. It’s the blueprint that outlines your path from current operations to the achievement of your business objectives.

Creating an effective strategic plan involves a systematic process that can be broken down into several key steps:

1. Establishing or Understanding the Business Objectives

Begin with a crystal-clear understanding of your business objectives. What do you aim to achieve and what are the key results you want to see? Your objectives should be specific, measurable, achievable, relevant and time-bound (SMART). They serve as the destination to which your strategic plan will lead.

2. Defining the Organizational Requirements

With your objectives in mind, assess the organizational requirements needed to achieve them. This involves a comprehensive evaluation of your workforce, technologies and resources. It’s about determining the skills, capabilities and tools necessary to support your strategy.

3. Creating Functional Organizational Designs

One of the pivotal aspects of your strategic plan is the design of your organization. Consider the structural changes, roles and responsibilities that will best support your journey towards your objectives. This may involve restructuring teams, altering reporting lines and ensuring that your organizational design complements your strategy.

4. Developing a Strategy for Evolving Through Organizational Designs

Recognize that your organizational design might need to evolve over time. Your strategy should outline a clear path for this evolution, including milestones and key indicators that signal when changes are necessary. Flexibility and adaptability are essential in the ever-evolving business world.

5. Generating Alternative Designs

In the face of uncertainty, it’s wise to consider alternative scenarios. What if market conditions change? What if a new technology disrupts your industry? Your strategic plan should account for these possibilities by generating alternative organizational designs that align with different scenarios. This ensures that your organization remains resilient in the face of unexpected challenges.

6. Presenting and Implementing the Organizational Strategy

Once your strategic plan is developed, the next crucial step is presenting it to the wider business. Effective communication and buy-in from all stakeholders are essential. Transparency and clarity about the plan’s objectives and how they relate to the broader organizational goals help align everyone towards a common purpose. Implementation involves setting clear timelines, delegating responsibilities and continuously monitoring progress to ensure that the plan unfolds as intended.

By following these steps, you can create a strategic plan that aligns with your business objectives and positions your organization for success.

In a business environment marked by constant change and fierce competition, a well-crafted organizational strategy is the compass that guides your journey. It ensures that your organization’s objectives, structure and processes are harmonized to achieve your mission and vision.

By recognizing the need for a strategy, embracing change and diligently following the steps to develop an effective plan, your organization can thrive, adapt and chart a course for long-term success.

Remember, a well-aligned strategy is not a destination… it’s an ongoing commitment to evolution and excellence.

● How does organizational strategy determine its requirements?

Organizational strategies determine its requirements by first defining its objectives, then assessing the resources, talent and processes necessary to achieve these goals. This involves a comprehensive evaluation of the current state of the organization and identifying any gaps that need to be addressed through strategic planning.

● What would be the best organizational strategy?

The best organizational strategy type is highly context-dependent and varies from one organization to another. It should align with the organization’s mission, vision and goals while considering factors such as industry dynamics, market conditions, competitive landscape and the organization’s unique strengths and weaknesses. There is no universally “best” strategy, as what works effectively for one organization may not be suitable for another. Orgvue can help you work out the best organizational strategy.

● Which is not an example of organizational strategy?

An employee’s daily task management is not an example of organizational strategy type. While it may contribute to the execution of an established strategy, the day-to-day management of tasks is typically part of operational activities and does not encompass the broader, long-term planning involved in crafting and implementing an organizational strategy.

● Can an organization’s structure be changed quickly?

While an organization’s structure can be changed, it’s typically not a quick process. It requires careful planning, communication and phased implementation to ensure a smooth transition that minimizes disruption to ongoing operations.

● Can changing the organization’s strategy cause problems?

Yes, changing the organization’s strategy can cause problems if not managed properly. It may lead to employee resistance, confusion and a temporary dip in performance as the organization adapts to new processes and objectives. Therefore, effective change management is crucial to mitigate these issues and facilitate a successful transition. Let Orgvue show you how.

Shaping your organization to better achieve its business strategy.

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Business Development > Starting a Business > Business Development Process

Updated October, 2023 File C5-09

Vision and mission statements -- a roadmap of where you want to go and how to get there.

Have you ever been involved in an organization or business that never seems to accomplish very much? Regardless of how hard you work, you just go in circles. The problem may be that you have not decided where you want to go and have not created a roadmap of how to get there. From the perspective of an organization, the problem may be that you are not focusing on what you want to achieve and how you will achieve it. Below are a series of steps or statements of how to give your organization direction.

The first is a statement of vision. It provides a destination for the organization. Next is a statement of mission. This is a guiding light of how to get to the destination. These are critical statements for the organization and the individuals who run the organization.

• Vision – Big picture of what you want to achieve.
• Mission – General statement of how you will achieve the vision.

A companion statement often created with the vision and mission is a statement of core values.

• Core Values – How you will behave during the process.

Once you have identified what your organization wants to achieve (vision) and generally how the vision will be achieved (mission), the next step is to develop a series of statements specifying how the mission will be utilized to achieve the vision:

• Strategies – Strategies are one or more ways to use the mission statement in order to achieve the vision statement. Although an organization will have just one vision statement and one mission statement, it may have several strategies.
• Goals – These are general statements of what needs to be accomplished to implement a strategy.
• Objectives – Objectives provide specific milestones with a specific timeline for achieving a goal.
• Action Plans – These are specific implementation plans of how you will achieve an objective.

A more in-depth discussion of these statements is presented below. Statements for an example business are provided for clarification.

Vision Statement – A mental picture of what you want to accomplish or achieve. For example, your vision may be a successful winery business or an economically active community.

Vision of an Example Business – A successful family dairy business.

Mission Statement – A general statement of how the vision will be achieved. The mission statement is an action statement that usually begins with the word "to".

Mission of an Example Business – To provide unique and high quality dairy products to local consumers.

Core Values – Core values define the organization in terms of the principles and values the leaders will follow in carrying out the activities of the organization.

Core Values of the Example Business:

• Focus on new and innovative business ideas
• Practice high ethical standards.
• Respect and protect the environment.
• Meet the changing needs and desires of clients and consumers.

Statements of vision and mission are important so that everyone involved in the organization, including outside stakeholders, understand what the organization will accomplish and how it will be accomplished. In essence this means "keeping everyone on the same page" so they are all "pulling in the same direction".

There is a close relationship between the vision and mission. As the vision statement is a static mental picture of what you want to achieve, the mission statement is a dynamic process of how the vision will be accomplished. To create successful statements, you should keep the following concepts in mind.

Simple – The vision and mission guide the everyday activities of every person involved in the business. Statements of vision and mission should be simple, concise and easy to remember. Use just enough words to capture the essence. The statements need to capture the very essence of what your organization or business will achieve and how it will be achieved. So statements of vision and mission should be a single thought that can easily be carried in the mind. This makes it easy for everyone in the organization to focus on them. To test the effectiveness of your statements, ask the leaders, managers and employees to tell you the vision and mission of their organization. If they cannot instantaneously tell you both the vision and mission, the statements are of little use.

But that doesn’t mean it will be easy to create the statements. It may require several drafts. Most statements are too long. People tend to add additional information and qualifications to the statements. Usually the additional information just confuses the reader and clouds the essence of the statement. Each successive draft of the vision and mission should be to simplify and clarify by using as few words as possible.

Fluid Process – The statements are not "cast in stone". They can be updated and modified if the organization changes its focus. It is often good to write the statements, use them for a period of time, and then revisit them a few months or a year later if needed. It may be easier to sharpen the focus of the statement at that time. Remember, the reason you are writing the statements is to clarify what you are doing.

Unique and Complex Organizations – It is usually more important to write statements for non-traditional organization where the purpose of the organization is unique. The same is true for complex organizations where it may be difficult to sift down to the essence of the existence of the organization.

Strategies, Goals, Objectives and Action Plans

Once you have created statements of vision and mission, and possibly core values, you can then develop the strategies, goals, objectives and action plans needed to activate your mission and achieve your vision.

Strategies – A strategy is a statement of how you are going to achieve something. More specifically, a strategy is a unique approach of how you will use your mission to achieve your vision. Strategies are critical to the success of an organization because this is where you begin outlining a plan for doing something. The more unique the organization, the more creative and innovative you need to be in crafting your strategies.

Goals – A goal is a general statement of what you want to achieve. More specifically, a goal is a milestone(s) in the process of implementing a strategy. Examples of business goals are:

• Increase profit margin
• Increase efficiency
• Capture a bigger market share
• Provide better customer service
• Improve employee training
• Reduce carbon emissions

Be sure the goals are focused on the important aspects of implementing the strategy. Be careful not to set too many goals or you may run the risk of losing focus. Also, design your goals so that they don’t contradict and interfere with each other. A goal should meet the following criteria:

• Understandable: Is it stated simply and easy to understand?
• Suitable: Does it assist in implementing a strategy of how the mission will achieve the vision?
• Acceptable: Does it fit with the values of the organization and its members/employees?
• Flexible: Can it be adapted and changed as needed?

Objectives – An objective turns a goal’s general statement of what is to be accomplished into a specific, quantifiable, time-sensitive statement of what is going to be achieved and when it will be achieved. Examples of business objectives are:

• Earn at least a 20 percent after-tax rate of return on our investment during the next fiscal year
• Increase market share by 10 percent over the next three years.
• Lower operating costs by 15 percent over the next two years through improvement in the efficiency of the manufacturing process.
• Reduce the call-back time of customer inquiries and questions to no more than four hours.

Objectives should meet the following criteria:

• Measurable: What specifically will be achieved and when will it be achieved?
• Suitable: Does it fit as a measurement for achieving the goal?
• Feasible: Is it possible to achieve?
• Commitment: Are people committed to achieving the objective?
• Ownership: Are the people responsible for achieving the objective included in the objective-setting process?

Action Plans – Action plans are statements of specific actions or activities that will be used to achieve a goal within the constraints of the objective. Examples of action plans within the context of goals and objectives are:

Action plans may be simple statements or full blown and detailed business plans where goals and objectives are also included. Action plans may also be used to implement an entire strategy (called strategic planning ).

Putting it All Together

To help you understand the relationship between each of these statements, examples of strategies, goals, objectives and action plans are shown for a business organization designed to improve the rural economy through developing rural businesses. Remember, the vision is what you want to accomplish. Mission is a general statement of how you will achieve your vision. Strategies are a series of ways of using the mission to achieve the vision. Goals are statements of what needs to be accomplished to implement the strategy. Objectives are specific actions and timelines for achieving the goal. Action plans are specific actions that need to be taken for reaching the milestones within the timeline of the objectives.

Conclusions

Creating the statements described above may seem like a lot of busy work. But these statements will help you focus on the important aspects of your organization or business. If done properly, they can save money and time and increase the odds that your organization or business venture will be successful.

Think of these statements as living documents that may change as the needs of the organization or business change. Too often these statements are treated as "iconic relics" to be stored away in a safe place. But, if you don’t use them, you have wasted your time.

Don Hofstrand, retired extension agricultural business specialist, [email protected]

Don Hofstrand

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How to Write the Strategy Plan Timeline (+ Examples)

• March 21, 2024
• Business Plan , How to Write

Creating a strategic plan timeline is crucial, especially if you are preparing a business plan for your business. This comprehensive guide simplifies the process, offering a step-by-step guide to crafting a clear, actionable strategy plan timeline tailored for business owners.

Whether you’re launching a new startup or scaling an existing business, you’ll find essential tips to best map out your business’s milestones and objectives. Let’s dive in!

What is a strategy plan timeline?

A strategy plan timeline in a business plan is a comprehensive schedule that outlines the sequence of actions, key milestones, and deadlines required to achieve the business’s strategic objectives.

It serves as a roadmap, detailing how the business will transition from its current state to its desired future state over a specified period.

This timeline is crucial for ensuring that strategic goals are met within realistic timeframes, allowing for efficient resource allocation and enabling stakeholders to monitor progress.

The strategy plan timeline can include some or all of the elements below:

• Objectives: The specific, measurable goals the business aims to achieve, aligned with its overall vision and mission.
• Milestones: Significant achievements or checkpoints that indicate progress toward the objectives. These are often quantifiable and serve as interim targets.
• Actions: The steps or initiatives that need to be undertaken to reach each milestone and, ultimately, achieve the objectives. These are typically assigned to specific teams or individuals.
• Deadlines: The timeframes by which milestones and objectives should be met to keep the plan on track. Deadlines help prioritize tasks and ensure timely progress.
• Resources: An outline of the financial, human, and material resources allocated to each action or milestone, ensuring that the plan is realistic and feasible.
• Review Points: Scheduled assessments of the plan’s progress, allowing for adjustments based on performance, external changes, or unforeseen challenges.

Incorporating a strategy plan timeline into a business plan provides a clear path for growth, operational improvements, or other strategic shifts.

It is essential for aligning team efforts, managing stakeholder expectations, and securing investment, as it demonstrates a thoughtful, actionable approach to achieving business success.

How to create a strategy plan timeline: 6 steps

When crafting a strategy plan timeline for a business plan, the goal is to map out a clear, structured path that will guide the business from its current state to achieving its long-term objectives.

This involves setting specific, measurable goals, identifying key milestones, and allocating resources effectively. Here’s a simplified approach to creating a strategy plan timeline that can be tailored to fit the unique needs of different businesses:

1. Define Your Objectives

Start by clearly defining the long-term goals and objectives of your business. What do you want to achieve in the next three to five years? Objectives should be specific, measurable, attainable, relevant, and time-bound (SMART).

2. Conduct a SWOT Analysis

Perform a SWOT analysis to identify your business’s Strengths, Weaknesses, Opportunities, and Threats. This will help you understand the internal and external factors that could impact your ability to achieve your objectives.

3. Set Short-term Goals

Break down your long-term objectives into smaller, actionable short-term goals. These should act as stepping stones toward your larger objectives and be achievable within a year.

4. Identify Key Actions and Milestones

For each short-term goal, list out the key actions or steps needed to achieve it. Then, identify significant milestones within these actions, which will serve as markers of progress.

5. Allocate Resources

Determine what resources (financial, human, technological) are needed to accomplish each action and milestone. Allocate these resources accordingly, ensuring that constraints are considered and managed.

6. Establish a Timeline

Assign realistic timeframes to each action and milestone. Your timeline should reflect the urgency and priority of each goal, balancing ambition with feasibility.

Strategy plan timeline: 2 examples

Here are 2 examples you can use as an inspiration to create yours. These are taken from our coffee shop business plan and hair salon business plan templates.

Coffee Shop Example

Hair Salon Example

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Business Plan Boot Camp: Executing goals and objectives with accountability

In the fourth of a five-part series, learn how to combine your SWOT analysis and strategic plan to create SMART actionable goals. Using real-life scenarios, you’ll strengthen your understanding of creating and executing goals with accountability.

This event is part of a virtual event series on what you need to build a successful business plan. Facilitated by Alex Strachan, a Senior Consultant with MNP, each webinar will feature a new topic, highlighting a different step in the process.

Check out more upcoming events . 

Recorded on March 19, 2024. Hosted by Lane Stockbrugger.

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Putting Your SWOT Analysis into Action

Best Practices for Risk Identification

Aligning your mission and vision with purpose

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Nissan launches The Arc business plan to drive value and enhance competitiveness and profitability

March 25, 2024

• Nissan targets additional 1-million-unit sales compared to fiscal year 2023 and operating profit margin of more than 6% by end of fiscal year 2026
• 30 new models to be launched by fiscal year 2026, of which 16 will be electrified
• 60% of internal combustion engine (ICE) passenger-vehicle models to be refreshed by fiscal year 2026
• EV competitiveness to be enhanced by reducing cost of next-generation EVs by 30% and achieving EV and ICE vehicle cost parity by fiscal year 2030
• Significant next-generation EV cost reduction to be achieved through grouped “family” development, with vehicle production under the approach starting in fiscal year 2027
• Strategic partnerships expanded into technology, product portfolio and software services
• Dividends and buybacks to target total shareholder return of more than 30%
• New business ventures to unlock a potential 2.5 trillion yen in additional revenues by fiscal year 2030
• Significant next-generation EV cost reduction to be achieved through grouped “family” development, with vehicle production under the approach starting in fiscal year 2027

YOKOHAMA, Japan: Nissan Motor Co., Ltd, today launched The Arc, its new business plan to drive value and strengthen competitiveness. The plan is focused on a broad-based product offensive, increased electrification, new approaches to engineering and manufacturing, the adoption of new technologies, and the use of strategic partnerships to increase global unit sales and improve profitability.

The plan is positioned as a bridge between the Nissan NEXT business transformation plan running from fiscal* 2020 through fiscal 2023 and Nissan Ambition 2030 , the company’s long-term vision. The new plan is split into mid-term imperatives for fiscal years 2024 through 2026, and mid-long-term actions to be carried out through 2030.

Nissan President and Chief Executive Officer Makoto Uchida said: “The Arc plan shows our path to the future. It illustrates our continuous progression and ability to navigate changing market conditions. This plan will enable us to go further and faster in driving value and competitiveness. Faced with extreme market volatility, Nissan is taking decisive actions guided by the new plan to ensure sustainable growth and profitability.”

Under the two-part plan, Nissan will first take actions to ensure volume growth through a tailored regional strategy and prepare for an accelerated transition to EVs, supported by a balanced electrified/ICE product portfolio, volume growth in major markets and financial discipline. Through these initiatives Nissan aims to lift annual sales by 1 million units and increase its operating profit margin to more than 6%, both by the end of fiscal year 2026. This will pave the way for the second part of the plan aimed to enable the EV transition and realize long-term profitable growth, supported by smart partnerships, enhanced EV competitiveness, differentiated innovations and new revenue streams. By fiscal year 2030, Nissan sees a revenue potential of 2.5 trillion yen from new business opportunities.

Balanced product portfolio

Nissan plans to launch 30 new models over the next three years, of which 16 will be electrified, and 14 will be ICE models, to meet the diversified customer needs in markets where the pace of electrification differs. Nissan plans to launch a total of 34 electrified models from fiscal year 2024 and 2030 to cover all segments, with the model mix of electrified vehicles expected to account for 40% globally by fiscal year 2026 and rise to 60% by the end of the decade.

Ensuring market growth through a tailored regional strategy

In key regions and markets, Nissan’s actions by fiscal year 2026 (unless otherwise indicated) include:

• Increase across-region sales by 330,000 units (in fiscal year 2026 and compared to fiscal year 2023) and invest 200 million USD in integrated customer experience in the U.S.
• In the U.S. and Canada: Launch seven all-new models
• In the U.S.: Refresh 78% of passenger vehicle line-up for Nissan brand and launch e-POWER and plug-in hybrid models
• Refresh 73% of Nissan-brand models and launch eight new-energy vehicles (NEVs), including four Nissan-branded models
• Target 1-million-unit sales in fiscal year 2026, representing an increase of 200,000 units
• Start vehicle exports in 2025; Aim for 100,000 unit level
• Continue to optimize production capacity with local partners
• Refresh 80% of passenger model line-up, launching five all-new models
• Achieve a 70% electrified level in passenger vehicle line-up
• Increase sales by 90,000 units (compared to fiscal year 2023) to 600,000 units in fiscal year 2026

Africa, Middle East, India, Europe and Oceania:

• Increase across-region sales units by 300,000 units (in fiscal year 2026 and compared to fiscal year 2023)
• In Europe: Launch six all-new models; achieve 40% EV passenger-vehicle sales mix
• In the Middle East: Launch five all-new SUVs
• In India: Launch three all-new models and become a hub for exports, at a level of 100,000 units
• In Oceania: Launch a 1-ton pickup and introduce a C crossover EV
• In Africa: Launch two all-new SUVs and expand A-segment ICE vehicle

EV competitiveness

The product offensive will be supported by new development and manufacturing approaches aimed to make EVs more affordable and increase profitability. By developing EVs in families, integrating powertrains, utilizing next-generation modular manufacturing, group sourcing, and battery innovations, Nissan aims to reduce the cost of next-generation EVs by 30% (when compared to the current model Ariya crossover) and achieve cost-parity between EVs and ICE models by fiscal year 2030.

In the area of family development alone, the cost of subsequent vehicles – those developed based on the main vehicle in the family – can be reduced by 50%, the variation of trim parts reduced by 70% and development lead time shortened by four months. By adopting modular manufacturing, the vehicle production line will be shortened, reducing the production time per vehicle by 20%.

Under the Arc plan, more plants in Japan and overseas will adopt the Nissan Intelligent Factory concept, with the Oppama and Nissan Motor Kyushu plants in Japan, the Sunderland Plant in the UK and Canton and Smyrna plants in the U.S. starting the adoption from fiscal year 2026 through 2030. Meanwhile the EV36Zero production approach will be extended from Sunderland in the UK to plants including Canton, Decherd and Smyrna in the U.S., and Tochigi and Kyushu in Japan from fiscal year 2025 through 2028.

New technologies

The plan includes proposals to accelerate the evolution of vehicle intelligence technologies such as next-generation ProPILOT driver-assistance system, which realize door-to-door autonomous driving technology from on-highway to off-highway, private premises, and parking.

Nissan will offer enhanced NCM li-ion, LFP and all solid-state batteries to provide diversified EVs to meet different customer needs. Nissan will significantly enhance NCM li-ion batteries, reducing quick-charging time by 50% and increasing energy density by 50% compared to the Ariya. LFP batteries, to be developed and produced in Japan, will be launched that will reduce cost by 30% compared to the Sakura EV minivehicle. New EVs with enhanced NCM li-ion, LFP and all-solid-state batteries will be launched in fiscal year 2028.

Strategic partnerships

Nissan will harness strategic partnerships to stay competitive and offer a global portfolio of products and technology. Nissan will continue to leverage the alliance with Renault and Mitsubishi Motors in Europe, LATAM, ASEAN and India. In China, Nissan will fully utilize its local assets to meet the needs of China and beyond; and explore new partnerships in Japan and the U.S. Batteries will be developed and sourced with partners to bring 135 gigawatt hours of global capacity.

Financial discipline to deliver resilient, profitable performance

Underpinning the plan is firm financial discipline, enabling stable CAPEX and R&D investment ratio versus net revenue of between 7% to 8% excluding battery capacity investment. Additionally, Nissan plans to invest more than 400 billion yen in battery capacity. Meanwhile, investment in electrification will increase progressively, becoming more than 70% by fiscal year 2026.

Managing these investments is aimed to allow delivering benefits to all stakeholders, with Nissan maintaining positive free cash flow before M&A – even after electrification investments. This is to secure total shareholder return at more than 30%. Nissan aims to maintain net cash at a healthy level of 1 trillion yen throughout the Arc plan period.

“Under this comprehensive plan we will enhance Nissan’s competitiveness and achieve sustainable profitability,” added Uchida. “Nissan is confident that it has what it takes to properly execute this plan, which will provide us with the firm foundation we need to bridge to our Nissan Ambition 2030 vision.”

*Nissan Motor Co., Ltd. fiscal years run from April 1 through March 31

Contact [email protected]

For more information about our products, services and commitment to sustainable mobility, visit nissan-global.com . You can also follow us on Facebook , Instagram , X and LinkedIn and see all our latest videos on YouTube .

• Press release - Nissan launches The Arc business plan to drive value and enhance competitiveness and profitability.pdf (116 KB)
• 2024 03 25 Nissan launches The Arc business plan - Presentation Slides_EN.pdf (79.26 MB)

Related Links

• The Arc：日産経営計画
• The Arc: Nissan Business Plan

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