Aims and objectives assist businesses with decision making.
Aims are the goal of the business and will differ according to various factors, eg:
- a private business will want to be profitable
- charities may concentrate on fund-raising, or raise awareness of social or ethical objectives
- age of business
- size of business
- growth of business
Objectives help the business achieve its aims. Some examples of objectives are:
- customer satisfaction
- market share
- profit
- cost savings
- environmental impact
- social media success
- income
Objectives can be set by using the SMART rule:
- SPECIFIC
- MEASURABLE
- AGREED OR ACHIEVABLE
- REALISTIC OR RELEVANT
- TIMELY
SPECIFIC
Objectives should describe the required result in a detailed, focused and defined manner
MEASURABLE
This will confirm if an objective has been achieved, and can be related to a rate, percentage, frequency or number.
AGREED OR ACHIEVABLE
Objectives should be achievable without being set too low. An achievable objective will require individuals to have the necessary skills, resources and responsibility to reach it. It is important to discuss the objectives with the people concerned and reach agreement. Objectives set too low can be demotivating.
REALISTIC OR RELEVANT
Realistic confirms there are no factors or circumstances whereby the achievement of the objective would be impossible, and that any potential barriers have been considered.
Relevant suggests that the objectives are appropriate.
TIMELY
A deadline is required to contribute to making objectives measurable. It helps create urgency and focus. When setting a deadline consider other possible demands which may cause delay.