Mission and Objectives
The first step or part of the
Rational Planning Model is the evaluation of business’s Mission and Objectives.
Mission in simple terms is the ‘reason for the existence of the business’ or ‘what
the business is doing’ in the market. This, however, is not as simple as that
when it comes to the practical sense. A Mission defines the scope of the
business, the ideology of the founders of the business and mission statement almost
never changes. A change in the mission signifies a change in the whole
structure and composition and culture of the business.
Objectives, on the other hand, are
rather short term and subject to change. Objectives are specific, quantifiable
and realistic targets for the business. We identify objectives as SMART
(Specific, Measureable, Achievable, Realistic, and Timely). It is not necessary
for objectives to have all these characteristics.
Eg: Increase annual revenue by 5%
Achieve a 20% growth in customer base
In developing a strategy for the
business and almost in all other aspects concerning business activities,
mission and objectives play a vital role. They are the driving factors that
guide the business and its employees towards one goal. This is known as
achieving goal congruence. No matter what strategy is imposed by the management
everything should ultimately lead to reaching the objectives.
This is the first step of the
many steps to come in developing a strategy.
To read the introduction to
strategy visit:
No comments:
Post a Comment