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Laying out your objectives

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Objectives are the statements that fill in the details, specifying exactly how you plan to reach each of your company’s goals. As much as possible, you should tie your objectives to cold, hard numbers: the market share percentage you want to achieve or number of new customers you want to serve, the quantified volume of products you want to sell, or the number of revenue dollars you want to generate.

This set of guidelines provides a useful template when your company starts to develop business objectives:

 Determine who should set business objectives in your company. While overall firm profit objectives might best be reserved for senior management to make, you don’t want these same folks alone determining the optimal level of product quality metrics on the shop floor.

 Develop a system for reviewing and managing business objectives throughout your company.

 Make sure that objectives are achievable and verifiable by including numbers and dates where appropriate.

 Create business objectives that can clearly advance and achieve larger company goals.

 Confirm that your company’s objectives, taken together, result in an efficient use of resources — money and people — in pursuit of broader business intentions.

 Consider using a formal method, such as management by objectives (MBO), to involve everyone in your company in the continuous process of setting, reviewing, and meeting business objectives. (For more on the ins and outs of MBO, see the nearby sidebar “Management by objectives.”)

Business Plans For Dummies

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