Indicators are necessary to assess progress towards achieving the goal. They can be used to understand how much closer the organization has come to implementing the strategy, and which employees deserve incentives. Given the large number of indicators measuring progress and the significant labor costs of collecting data, it is recommended to link no more than 2 or 3 to one goal. They are selected in accordance with the Pareto principle, taking into account the possibilities of calculation based on information from the organization's existing management accounting system.
After the goal has been digitized, the next stage begins. It is necessary to appoint a responsible manager and form projects whose task is to achieve the intended goal. There may be several of them to implement one goal, and each one should have planned deadlines for completion.
As a result, we will receive a tree of goals. For each of them, indicators with planned and actual values will be established, employees responsible for their implementation will be appointed, project complexes will be created to ensure the implementation of the strategy. At the final stage, it is only necessary to start implementing the plan and enter new data into the motivational system for executives.
Example of building a tree of goals for business
The main long-term goal of the ios database company "Astra" has the following formulation: "Double the company's revenue, which should reach $ 3 billion by 2026. This is a long-term strategy that reflects the interests of the internal environment of the organization. The formulation of the goal is clear, contains precise deadlines for achievement and the required result.
To ensure that the stated indicators are met, the company plans to combine organic growth and acquisitions. As of 2022, the company's revenue is $ 1.5 billion. Analysts believe that if the company ensures a stable sales growth of 30% in the next three years, it will be able to achieve its strategic goal.
In addition to long-term strategies, the enterprise also has short- and medium-term goals. They apply to marketing, production, financial spheres and personnel. For clarity, we will construct a tree of the organization's goals with their prioritization:
Goal formulation Rating
Double the company's revenue. By 2026, it should reach $3 billion 1
1. Marketing 0.3
1.1. Strengthening positions in new market niches 0,1
1.1.1. Building Strong Brands 0.02
1.1.1.1. New advertising campaigns 0.02
1.1.2. Creating Highly Profitable Products 0.03
1.1.3. Marketing research 0.05
1.2. Expansion of sales geography 0,1
1.2.1. Buying successful companies in a given niche 0.06
1.2.2. Expansion of the number of regional offices 0.04
1.3. Strengthening the positions of the best brands 0,1
2. Production 0.3
2.1. Become a leader in the field of food production in the CIS 0.2
2.1.1. Expansion and improvement of production capacities 0.07
2.1.1.1. Introduction of new packaging for baby food 0.07
2.1.2. Development of innovative products 0.08
2.1.2.1. Creation of new technologies (conducting R&D) 0.08
2.1.3. Expansion of the number of supplier companies 0.05
2.2. Construction of new logistics centers based on branches 0,1
3. Frames 0.2
3.1. Selection of new specialists 0.13
3.1.1. To accept the best managers, specialists from leading transnational food companies into the company 0.05
3.1.2. Hire top managers to develop new product lines 0.04
3.1.3. Hire a media director responsible for PR placement 0.02
3.1.4. Hire marketing and sales specialists 0.02
3.2. Improving the level of qualification of employees 0.07
3.2.1. Training of specialists 0.07
4. Finance 0.2
4.1. Increase in profit 0.2
4.1.1. Revenue growth by 30% per year 0.12
4.1.1.1. Discarding Low-Income Business Units