Business objectives are targets that are used to measure the performance of organizations, teams and individuals for a period of time. Objectives can include end-goals such as revenue and steps towards goals such as efficiency. The following are common types of business objective.
Revenue such as a product management team with a revenue target of $45 million for a particular product line.Reducing costs. For example, an automation project that reduces the cost of warehouse operations.
CompetitionCompetitive objectives such as gaining market share.
Developing know-how and intellectual property.Achieving an attractive return on investment is a common objective for strategies, projects and investments in assets and securities.The amount of output you get for a unit of input. For example, the amount of electricity required to produce a unit on a production line.
The amount of output you get for an hour worked such as the amount of work required to produce a pair of shoes.
ProcessesImproving processes such as reducing the cycle time of an order fulfillment process.Implementing new business capabilities or improving existing capabilities. For example, a human resources department that launches a campus recruiting capability that allows the firm to engage graduates at 12 universities and colleges.
Brand objectives such as brand awareness and brand loyalty.Product development objectives such as time to market and time to volume.Sales targets such as customer lifetime value and customer acquisition cost.
Pricing objectives such as price leadership.Distribution objectives such as developing distribution channels in a new region or country.Reducing customer churn and cross-selling related targets.
Improving the end-to-end customer experience as measured by customer satisfaction, ratings and reviews.Satisfied, productive and creative employees. Measured by employee surveys and productivity metrics such as revenue per employee.The norms, expectations and habits of your organization. Measured with surveys. For example, a survey of manager perceptions of resistance to change and office politics.Objectives related to your core business processes. For example, the availability of your IT services.Quality objectives such as improving quality control metrics, reducing customer returns or improving product ratings.Risk management objectives such as reducing the probability and impact of information security incidents.Innovation objectives such as developing a product with revenue potential that is an order of magnitude beyond your current products.Implementing controls to achieve compliance to standards, laws and regulations.Objectives related to the global impact of your operations and products such as reducing harmful waste.
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