Business goals are targets that an organization sets for itself in order to improve its overall strategy and performance. These goals are typically designed to increase profitability and enhance competitive advantage.
There are several types of business goals that organizations may set, including financial goals, such as increasing revenue or profitability; customer-related goals, such as improving customer satisfaction or loyalty; and operational goals, such as increasing efficiency or productivity.
In order to achieve these goals, organizations must develop and implement a strategic plan. This process involves conducting a thorough analysis of the organization’s internal and external environments, identifying opportunities and challenges, and setting specific, measurable, achievable, relevant, and time-bound (SMART) goals.
Once the goals have been set, organizations must work to implement and execute the strategic plan, which may involve making changes to business processes, allocating resources, and setting performance targets.
Effective goal setting and strategic planning are crucial for the success of any organization. By setting clear and achievable goals, and developing a comprehensive plan to achieve them, organizations can improve their overall performance and increase their chances of long-term success. The following are illustrative examples of measurable business goals.
A farmer targets revenue of $400,000 with a strategy to plant several high value crops.
A company plans to reduce software licensing costs by $1.1 million by retiring a legacy system.
A cafe has a goal to increase gross margins from 30% to 35% by introducing higher price menu items such as specialty coffees.
An organic cereal company plans to reduce unit costs by 10% by directly purchasing several key ingredients from organic farmers.
A snowboard manufacturer establishes a target of 10% market penetration with a pricing strategy designed to offer low prices to price sensitive customers.
An ice cream company plans to increase summer sales volumes to 14 million units a month by expanding sales into the Mexican market with a distribution partner.
Customer Acquisition Cost
An air conditioning maintenance company plans to reduce customer acquisition cost to $1000 per contract with a sales partnership with a building management firm.
Customer Lifetime Value
An airline seeks to improve customer lifetime value to $144000 for its elite members by expanding its services at airport lounges.
A cloud platform seeks to reduce customer churn to 3% for small business customers by reducing bandwidth costs that are often cited by customers as the reason they are closing their account.
A streaming music service has a goal to improve its conversion rate for website visitors signing up for an account to 3% by accepting more payment methods.
A house builder has a goal to generate 400 leads for a new development project with advertising and the launch of a local sales office.
A software company has a goal to improve its proposal win rate to 50% by recruiting talented sales people.
A cloud computing provider seeks to improve the value of a government contract to $66 million per year by providing value added services in areas such as security management.
Share of Wallet
An information security company seeks to improve its share of wallet to 40% for large accounts by offering a line of infrastructure products.
A software development company seeks to improve its average lines of code per day with a program that lets developers work from home three days a week if they meet productivity and quality targets.
A bank seeks to improvement its data center infrastructure efficiency to 65% with a new cooling strategy. Data center infrastructure efficiency is the percentage of energy at a data center that is used for computing as opposed to other facility uses such as cooling.
A bank that plans to improve the throughput of a mortgage application process from 440 application reviews a day to 880.
A company targets improvement in the cycle time of order-to-delivery to an average of 47 hours.
Time to Market
A product development initiative at a bank targets a 6 month time to market for a new mortgage product.
Time to Volume
An electronics firm targets a time to volume for an innovative new camera lens of one year and one million units.
Figure of Merit
A solar panel company seeks to improve its cost per watt to $0.29 with new designs and manufacturing methods.
A manufacturer of ceiling fans plans to diversify its product line with a number of lighting products with a target to generate 25% of revenue from the new product line within 3 years.
A telecom company targets a customer satisfaction rate of 55% from 35% by removing unpopular contract terms.
A hotel seeks to improve its ratings on a popular travel site from 3.2 to 4.0 by addressing the top 3 complaints in reviews with new services and policies such as a later check out time and cheaper flat rate parking prices.
A brand of coffee targets 1 million loyal customers with a plan to aggressively position their product as the cheapest high quality organic coffee on the shelves.
A software platform plans to fix several bugs and remove unpopular features to improve monthly churn rate from 4% to 2%.
A dentist advertises their clinic all over town with a target of achieving 20% top of mind brand recognition for local dentists.
A technology firm does a rebranding and promotional campaign to break its association with a legacy technology and establish an more modern brand image. The goal is for brand recall of 30% for the produce category software as a service.
An insurance company seeks to improve new employee satisfaction to 80% with a more extensive onboarding process.
A restaurant owner seeks to improve one year employee retention to 80% by offering more consistent and predictable shift scheduling.
A graphic design company seeks to improve employee performance with a series of training workshops. They will measure performance improvement in terms of client satisfaction with a target of 90%.
Return on Investment
A factory is expanding from two production lines to three with a target return on investment of 1400%.
A telecom company builds a new data center with a goal to achieve payback within 4 years.
A hotel is investing in room renovations to improve customer satisfaction and ranking of the hotel on travel sites. The goal is to improve its occupancy rate to 94% and average price per night to $200.
A SaaS app targets uptime of 99.99% with architecture and infrastructure upgrades.
A fashion brand redesigns its website with a target of a 3 second average load time.
A streaming media service seeks to improve its average user engagement to 11 hours a month by introducing new children’s shows.
Mean Time to Repair
A telecom service provider targets a mean time to repair of 35 minutes.
A manufacturer of men’s shirts has a goal to reduce returns from 18% to 5% by improving the quality of materials to produce shirts that are more opaque and less likely to wrinkle.
An airline plans to measure risk probability and risk impact for its legacy IT systems and reduce that risk by $4 million over five years with modernization projects.
A fashion brand plans to improve positive perceptions of its brand by switching to 100% sustainable materials that are responsibly sourced, have low environmental impact and are renewable.