Tag: Strategic Planning

Aligning Organizational Goals to Employee Goals

Aligning Organizational Goals to Employee Goals

Connecting the strategic goals of an organization to each of the employee’s performance goals is critical to the success of an organization. In an effectively aligned organization, everyone is working towards the same goal. Each individual knows exactly how their job tasks contribute to the success of the overall organization.


Cascading Objectives Down to Employees

To support its mission and be successful, an organization needs to set clear goals and objectives. These goals and objectives need to cascade down from the top level of the organization to the lower levels and ultimately to each employee. The ultimate goal is to make sure everything done by each individual is helping to move the company towards its long term objectives.



Process of Organizational Goals Setting

Organizational goals setting can be broadly viewed as a three step process.

  1. Step 1 – Set Organizational Goals
  2. Step 2 – Set Departmental Goals
  3. Step 3 – Set Employee Goals


Step 1 – Set Organizational Goals

Goals and objectives are first set for the overall organization. They are defined by the organization’s strategic plan.


Strategic Plan

A strategic plan is a broadly-defined plan aimed at creating a desired future. An organization’s strategic plan should answer three key questions:

  • Where are we now?
  • Where are we going?
  • How will we get there?


Goals and Objective

An organization’s strategic goals and objectives are derived from their strategic plan. The organization’s goals and objectives answers the question; how will we get there?

Annually, organizations create strategic goals for themselves that target key objectives that they will strive to achieve over the course of the upcoming year. These goals are tied to the company’s mission and vision statements. These goals help management and employees know what is important and what direction the organization is headed.


Step 2 – Set Departmental Goals

After the organizational goals and objectives are set, goals are then are broken down across the organizational hierarchy. These goals cascade down several levels depending on the size of the organization.


Step 3 – Set Employee Goals

Most organizations create goals for each individual employee. Employee goals describe the employee’s top priorities for the upcoming year. Typically, these goals describe important job responsibilities and what key performance outcomes the employees should be attempting to achieve. They are often linked to the company’s key performance indicators (KPI).

These individual goals are designed to help the organization as a whole meet their strategic goals. It is easier to reach the organization’s goals if all the employees’ goals are linked and in sync with what the organization wants to achieve.




The Importance of Aligning Organizational Goals to Employee Goals

Goal alignment is critical for an organization’s success. It ensures that each person within your organization can see the direction for the company and know how their job fits in with the big picture.

To achieve goal alignment in an organization, the strategic goals and objectives must first clearly communicate across the entire company. With everyone working together toward the same objectives, the company can efficiently execute their strategy.


Strategic Management

Strategic Planning

Employee Performance Goals

Organizational Goals


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Organizational Goals

Organizational Goals

Organizational goals are strategic objectives that an organizations’ leadership team establishes to outline expected future outcomes toward which present efforts are directed. These goals not only drive the organization as a whole, but also guide employees’ efforts towards achieving the company’s vision.



Two Types of Organizational Goals

There are two main types of organizational goals:

  1. Official Goals
  2. Operative Goals

Official goals are the formally stated goals of an organization and are described in its public statements such as the corporate charter, mission statements, and annual reports. The purpose of official goals is to help build the organization’s public image and reputation.

Operative goals are the concrete steps an organization plans to take to achieve its vision and purpose. They are the outcomes the organization actually seeks to attain through its operating activities. These goals are derived from a strategic planning. When most people refer to “organizational goals” they are referring to operative goals.



Organizational Goals and Strategic Plans

Organizational goals are the result of strategic planning. Strategic planning is an organization’s process of defining its direction, developing a strategy, and documenting a plan to pursue that strategy.  These goals are defined and detailed in that strategic plan.



Setting Operational Goals

Organizational goals are created in an attempt to achieve a desired future state of success. The goal setting process begins by assessing the organization’s vision and mission. Therefore, it is essential that an organization have a clear mission and vision before it begins to determine its goals.

The next step is the goal setting process is assessing internal factors such as financial resources, physical resources, and human capital as well as external factors such as competitors, product demand, and the economy.

After the assessments are complete, organizations should create a set of cascading goals, beginning with company goals. Department and/or unit goals should then be created to support company goals. Finally, individual employee goals should be created to support the department/unit goals. These multiple levels of goals should be aligned and communicated so that an individual employee understand how their actions contribute to company’s overall success.


Benefits of Goals

  • Guidelines for action
  • Directs and channels employee efforts
  • Justifies a company’s activities
  • Identifies development opportunities
  • Defines performance standards
  • Allocates resources
  • Defines standards of performance
  • Provides constraints and parameters
  • Provides incentives and a source of motivation



Key Organizational Goals

There are several key areas in which most organizations establish goals:

  1. Market share
  2. Productivity
  3. Profitability
  4. Innovation
  5. Resources
  6. Management performance
  7. Employees performance
  8. Social responsibility


Strategic Management

Strategic Planning

Employee Performance Goals



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Strategic Planning

Strategic Planning

Strategic planning is an activity undertaken by organizational leaders to determine their vision for the future as well as identify key goals and objectives for the organization. The ultimate purpose is to develop a specific plan that would guide the organization towards accomplishing its vision and mission.

Strategic planning is a step-by-step exercise that ultimately determines the desired results of an organization and how those results will be achieved. The process includes assessing and adjusting the organization’s direction, setting priorities, allocating resources, strengthening operations, and setting goals. The strategic planning process results in a strategic plan. The plan documents the proposed steps to take to achieve the stated organizational objectives. The plan is then monitored and modified through strategic management activities.


Strategic Planning Process

Strategic planning determines where an organization is going over the next few years and how it’s going to get there. The process begins by assessing the organization’s vision as well as elements of both the external and internal environments. A high level strategy is then formulated. After which, a strategic plan is then created to outline the steps needed to achieve the organization’s objectives. The plan establishes the sequence for the goals so that the organization is enabled to reach its stated vision. Finally, strategic management activities are employed to monitor, evaluate, and adjust the plan as needed.

A Strategic Plan

A strategic plan is a document derived from the activities of the strategic planning process. The plan communicates with the entire organization both the decisions made about the organization’s goals and the ways in which the organization will achieve those goals. It is derived from the analysis of the organizations internal and external environment, and results in the formulation and implementation of strategic objectives designed to achieve the organization’s vision and mission.

The strategic plan is intended to guide the organization’s leaders in their decision making as circumstances change. Since many elements in the future are unknown, the plan and the organization must be flexible. Therefore, a strategic plan should not be viewed as a fixed roadmap, but rather a malleable document that needs to be revisited and revised on a regular basis.


Strategic Management

The strategic management process helps ensure that the organization’s employees, processes, and resources support the vision established in the strategic plan. It also helps organizations effectively align their ongoing actions with their strategic plan. Additionally, it enables the strategic plan to evolve and grow as circumstances change.

Strategic Management Defined

Strategic management is the comprehensive collection of activities that organizations conduct to systematically coordinate and align resources and actions with their mission. It involves the implementation, administration, monitoring and adjustment of the organization’s strategy.

Additional Links

Strategic Management

Employee Performance Goals

Organizational Goals

Aligning Organizational Goals Employee Goals

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