Difference between Business Goals and Objectives

Very often business persons use the vocabulary of goals and objectives interchangeably. Their understanding is that these two words mean the same thing even if they are talking about long term purpose or a short term target. Though both are to be achieved in order to gain business success, goals and objectives have different aspects built around them. Here is a list of key differences between business goals and business objectives:

1. Goal is derived from the word “go” which is broader in meaning. Go where, is the question that props out from this. Basically a goal means an aim or purpose to be obtained. Objective on the other hand is derived from the word “object" that has specific and perhaps narrow meaning. Generally, objective is concerned with a target or mission to be accomplished

2. Goals are framed as guided by the vision of the company. The format of goal must answer the question “what we like to become”. For example, a business can declare its goal as “we like to become leading manufacturer of cars”; it does not give specifics, nonetheless. In contrast, objectives are set in reference to the mission of a company. The format of objective must answer the question “Who, What, When, Where, Why”. For example, a business can set a target of achieving 20 % of market share in sport car manufacture in Texas within 12 months by penetrating new market segments

3. We speak of goal as an end to be achieved during the business lifecycle; the effort to reach such an end is spearheaded by an objective

4. It is just easy to visualize goals; on the opposite side it is somewhat difficult to set objectives

5. Goals take global view while objectives zero in on peripheral view

6. Goal relates to a concept while objective is a construct

7. Goal focuses on long-term; objective is for short to medium terms

8. In the case of goal, results cannot be validated or measured in high degree of tangibility; whereas objective lends itself to be validated or measured in terms of tangible outcomes

9. There is something hazy, nebulous and abstract about goals. Clarity, preciseness along with concrete statements accompany an objective

10. Finally, we can move in the matter of goal in a leisurely pace; there is no need to hasten; time is the great arbiter so goal is not a matter of urgency. This cannot wash with objective; you are on the fast track; time is ticking; quite a lot of matters need to be done in achieving an objective; get cracking and this is pretty urgent.

Muthu Ashraff

Business Adviser

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