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Aims and Objectives, Mission Statements

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Are they the same?

A hierarchical list of intentions, becoming more specific and measurable as one goes down the hierarchy.

Mission Statement

Aims

ObjectivesGoals?

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The Mission Statement A short statement that sum up

the organisation’s approach and purpose.

“Life long learning for the whole community”

“What are we FOR?” What business are we in? What business do we want to be in? How might we get there?

What’s yours?

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Strategy

Made up of aims and objectives

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Aims

Broad, long term goals. “Where do we want to be?” Probably best to have no more

than have a dozen States what we want to

achieve, not how we’re going to do it.

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Objectives Clear, unambiguous,

measurable statementsSpecific: state exactly what is expected

Measurable: Set a target that can be assessed

Achievable: realistic

Relevant: helpful to the overall future of the business

Time limited: should have a future deadline

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Objectives Each aim will usually have

several objectives Statements of WHAT we will

do, not how it will be done.

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Examples of strategic (long term) objectives

Increasing shareholders’ earnings

Becoming the market leader Reducing borrowing Improving industrial relations

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Examples of operational (short term) objectives

Meeting forecast sales next year

Increasing market share of some products

Cost-cutting programmes Efficient utilisation of plant,

machinery and people Improving cashflow position Better credit control

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Policies

HOW objectives will be pursued.

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Examples

Aim - A happy, healthy, contented, productive workforce.

Objective – Improve the health of our workforce by cutting the number of smokers in our workforce by 20% NLT January 2009.

Policies Introduce a smoking ban in the

workplace Offer practical help to employees to

stop smoking

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Objectives of Private-Sector organisations

Profit maximisation Produce & supply goods &

services for which demand is increasing

Minimise costs of production Maintain output at level where

profits are maximised Vary level of supply (needs

market domination!) R & D (new products and

methods)

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Objectives of Private-Sector organisations

Brand leadership/market domination

Corporate growth Expanding existing markets Diversification Takeover

Satisficing “Just enough is good enough”

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Objectives of Private-Sector organisations Survival

“buying turnover” Loss-making

offset against profit making parts of the group

may still be cheaper than “buying in” Strictly defined profit levels Service Employment

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Objectives of public-sector organisations

Key objective is to provide services such as education, health, national security which are essential for welfare of the country.

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Objectives of Public Sector Organisations

Access – available to all regardless of location or

income Quality –

high quality services that do not cut corners Affordability –

services offered at prices that are cheaper than private sector or free at the point of use

Equity – available to anyone whatever their

background, status, income, class, race, religion, etc.

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Objectives of non-profit organisatons

Provide for a social need thorough funds raised by from the general public.

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Influencers on business objectives

There are various groups involved in business activity

As a collective they are known as STAKEHOLDERS

Eg, owners, workers, consumers, community, government….

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Influences on Objectives & Policies

Owners expectations

Objectives and policies

Socialresponsibility

Businessethics

Consumer pressures

Pressuregroups

Manager’sgoals

TradeUnions

Economic Factors

LegislationEmployee expectations

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Changing and conflicting objectives

Due to the number of stakeholders, it is the job of the small business owner (or large business managers) to minimise the conflict that can occur between the various stakeholders.

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Why have objectives?

Objectives are what a business wants to achieve. For a business to be effective and therefore successful these objectives must be communicated to employees, otherwise the business may lose focus and therefore its purpose of existence.

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Why have objectives?

Makes a business strive to improve

Helps a business set budgets Helps a business monitor its

progress Objectives are more specific

than aims. The aim is broken down into objectives so that the aim is easier to achieve.