In the business world, the difference between a company that advances with direction and one that simply reacts to the market lies in the quality of its objectives. Defining goals is not a trivial exercise or a corporate procedure; It is the backbone of a successful strategy.
Throughout my experience working with business leaders, I have noticed that, although most companies establish objectives, few do so effectively. In many cases, the goals are too vague, unattainable or do not have a clear measurement system. This leads to disconnected efforts, organizational frustration and a lack of tangible results.
The good news is that there are proven methodologies that can transform the way your company defines and executes its objectives. Let’s see which are the most used and what is the best option according to the context of your business.
The problem of poorly raised objectives
In meetings with general directors and senior executives, a recurring question usually arises: how to ensure that all the efforts of the organization are aligned towards success?
Companies that fail in this task often make three common mistakes:
- Lack of clarity. Vague objectives that do not indicate a clear course. Incorrect example: “We want to improve operational efficiency”. Best approach: “Reduce operating costs by 15% in the next 12 months by optimizing key processes”.
- There is no adequate measurement. Goals are established without concrete success indicators. Incorrect example: “Increase customer satisfaction”. Best approach: “Increase the NPS score from 60 to 75 in six months through post -sales improvements”.
- Disconnection with strategy. Goals are defined that do not contribute to the mission, vision and values of the company. Incorrect example: a company that wants to position itself as an innovation leader, but establishes objectives focused only on cost reduction.
Defining objectives correctly not only avoids these errors, but also transforms the company’s approach towards sustained growth.
The most effective methodologies to define objectives
Over the years, various approaches to structure objectives have emerged. In my perspective, the three most effective methodologies are:
1. smart: well -structured and attainable objectives
Smart is a classic method that ensures that the objectives are:
- Specific (Específicos)
- MEasurable (measurable)
- Achievable (attainable)
- Relevant (releving)
- TIME-Bound (Limited over time)
Example of a well -defined smart goal: “Increase sales by 12% in the Latin American market in the next 9 months by expanding the e-commerce channel.”
The good: it is easy to apply and help establish clear goals. The bad: it can generate conservative objectives that do not challenge the team enough.
2. Grow: A structured model for decision making
The Grow model, widely used in business coaching, follows four steps:
- GOAL (Meta): What do we want to achieve?
- REALITY (current reality): Where are we now?
- OPTS (Options): What roads do we have available?
- WIll (will): What is the commitment and action plan?
Example of application in a business context: A sales team that faces a drop in the closure of USA Grow contracts to analyze the problem, define solution options and commit to a recovery strategy.
The good: ideal for strategic decisions and analyze alternatives. The bad: it can be difficult to measure if concrete metrics are not established.
3. OKRS: ambitious objectives with measurable results
The OKRS (Objectives & Key Results) were popularized by companies such as Google and Netflix. Its structure is simple but powerful:
- Aim: Define what we want to achieve.
- Key results: Specific indicators that allow measuring if the objective is being achieved.
Example of well raised OKRS: The objective is to expand our presence in the European market. The key results are:
- Open three new offices in strategic cities in the next 12 months.
- Increase sales in the region by 25%.
- Get 10 new high -value business clients.
The good: it encourages ambition and focus on measurable results. The bad: it can be complex to implement without a culture of methodology, focus, discipline and trust.
The greatest obstacle in Latin America: specialized talent and limited financing
Latin American companies face particular challenges when establishing strategic objectives. The two main obstacles identified by the Inter -American Development Bank (IDB) are the lack of specialized talent and limited access to financing.
- Lack of specialized talent: Many companies lack leaders with experience in strategic planning, which hinders the implementation of well -set objectives.
- Restricted access to financing: According to IDB, limited access to credit prevents many companies from investing in technology, training and tools for the measurement and monitoring of objectives.
To overcome these barriers, it is key that companies:
- Invest in internal training: Train teams in strategic planning methodologies.
- Diversify financing sources: Explore alternatives such as microcredits, risk capital or collective financing.
- Foster a culture of measurement and monitoring: Establish periodic reviews of key objectives and results.
In an increasingly competitive environment, the ability to define objectives is properly what separates companies that prosper from those that simply survive. If there is something that I have learned advising companies from different sectors is this: a well raised objective not only defines a destination, but also marks the way to reach it.
Now the question is for you: Are the objectives of your company really guide growth, or only exist in an impactless document? Because in the business world, success is not a product of chance, but of an intelligent strategy.
The author is strategist, mentor, lecturer, articulist and director of intelligent development strategies. Follow it on LinkedIn.
The opinions published in this column belong exclusively to the author.
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