1. Tool 10:
Planning
Your Objectives
This project has been funded with support from the European Commission. Thispublication reflects
the views only of the author, and the Commission cannot be held responsible for anyuse which may
be made of the information contained therein
2. Tool 10: PlanningYourObjectives
Thistool is abouthow to plan andreview yourenterprisesbusinessobjectives.Objectivesclarify
whatit isyou are tryingto accomplishinaspecificandmeasurable wayincludingsettingoutaclear
timescale forwheneachobjective istobe completed. Foranobjective tobe effective,itneedstobe
well-definedwithquantifiable elements thatcan be measured.Ideally,yourobjectivesshouldlink
directlytoyourvisionforthe enterprise.
Examplesof Objectives
These Are Not Effective or SMART Objectives
Developasustainable businessminimisingpeaksand
troughs
Notspecific,nowayto measure
Developastrategicmarketingalliance withkey
partners
Notspecific,whichpartners,toachieve
what?
Developandintroduce newproductstogrow the
business
Vague withnospecifiedproducts and
lacksany statementof financial impact
Improve profitabilityandcashflowtosupport
businessgrowth
Needsmore detail andneedstobe
qualified
Reduce inventorylevels
Unclearwithno timescale and excludes
measurable indicators
These are Stronger Examplesof SMART Objectives
Increase salesby25% to €1m in 2019 and€1.25m in
2020
Specificandmeasurable
Increase productionfrom10,000 unitsto 15,000 per
montheffectivefromJune 2019
Clearand veryspecific
Improve overall productmarginby40% by reducing
discountsonlowvolume productsto 3% and
enforcingaminimum45% marginonall new products
Statesa clear goal and how it will be
achieved
Reduce inventoryby€5Kby endof June 2020
Clear,measurable withanagreed
timescale
3. Use thisexercise todefine yourobjectivesineachof the course businessareas: Financial;Marketing
and Sales;Operations; HumanResources;Research&Development;and Other.
Description of the Activity
Required
What will happen and when? What is the financial impact?
1. Type of Objective:<insert>
2. Type of Objective:<insert>
3. Type of Objective:<insert>
4. Type of Objective:<insert>
5. Type of Objective:<insert>
6. Type of Objective:<insert>
Example for Creative Organic Foods: Marketing
To increasevisitor numbers to
100K per annum by 2020
More aggressivemarketing
strategies showcasingour new
attractions
Expenditure of spend of €5K per
quarter on digital marketingplus
a new website
4. CraftingYourObjectives
Usingthe ideasfrom above,drafta setof SMART (i.e. specific,measurable,achievable,realistic,time
bound) objectives makingsure yourfirsttwoobjectivesrelate to salesandprofitability. Your
objectivesshouldbe one sentence,easytounderstand andSMART.
1. SalesObjective:
2. ProfitabilityObjective:<insert>
3. <insert name of > Objective:
4. <insert name of > Objective:
5. <insert name of > Objective:
6. <insert name of > Objective:
7. <insert name of > Objective:
Example for Creative Organic Foods: Marketing
“To launcha marketingstrategysupportedbyanew website andadigital marketingcampaign
resultingin10K Facebookfollowersand100,000 visitorstoCreative OrganicFoodsby2020.”
