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What Are Organizational Goals? - Definition, Types & Examples

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  • 0:01 What Are Organizational Goals?
  • 1:19 Types of…
  • 4:23 Long-Term and Short-Term Goals
  • 5:08 Lesson Summary
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Lesson Transcript
Instructor: Arielle Rose

Arielle has taught Business and Customer Service as well has Master's degree in Business Administration.

This lesson is an in-depth review of organizational goals. It will give you an idea of the different types of goals, show examples of organizational goals, and discuss how each can be measured for success.

What Are Organizational Goals?

Imagine you're the owner of Happy Home Inc., a home concierge service. For a while now, you've been making a living providing house and dog sitting as well as maid services to your clients. You need to hire some staff and find a location for your headquarters, so you write a business proposal and apply to your bank for a loan. When you go to your loan review meeting, your request is initially denied. The loan officer tells you the reason for denial is lack of clear organizational goals, and that you have 30 days to resubmit with defined goals.

Organizational goals are created in an attempt to achieve a desired state of profit and success. General organizational goals are found in the mission/vision statement of the company, but details of those goals are defined in the business plan.

Happy Home's mission statement is, 'To provide clients with excellent service by improving the quality of your living space and that of your pet. We want you to be a Happy Pet Parent, living in a Happy Home.' As you can see, this isn't very specific. Your clients and the bank both want to know how you will accomplish this and that's where having clearly defined goals makes a difference.

Types of Organizational Goals and Examples

The two main types of organizational goals are official and operative. Official goals are typically found in a company's mission or vision statement, and communicate the general purpose of the organization. They can also be found in press releases from key executives or the company's annual reports. These types of goals are often qualitative, which means they're subjective and harder to measure. Bases on Happy Home's mission statement, the official goal is 'To provide our clients with excellent service by improving the quality of your living space and that of your pet'.

Operative goals describe the steps the organization will take to achieve its purpose. These goals aren't precisely the same as official goals. Official goals are what the organization would like to achieve, while operative goals are what the organization needs to achieve to become successful. Operative goals also tend to be measured quantitatively, which means they are based on metrics. A good example of an operative goal for Happy Home would be, 'To gain additional market share and opportunities in the local market.'

Operational goals define the business processes needed to achieve operative goals. These types of goals help determine the course of the next three types of goals. Keeping Happy Home's operative goal in mind, an appropriate operational goal would be, 'To hire a digital and social marketing team to increase brand recognition in the local markets'. As you are beginning to see, each goal builds on the previous one, with the focus becoming more and more defined as you begin to create more specific goals.

Productivity, profitability, and quality goals all influence each other. These goals are easily evaluated since they each rely on predetermined metrics of success. Productivity goals focus on improving the way the product is created or delivered. They're mostly concerned with increasing the amount of product created while decreasing the costs of labor used to create it.

For Happy Home, an example of a productivity goal would be, 'To increase the amount of clients booked within a 5 mile radius and assign each region to one employee.' As you can see, this type of goal focuses on increasing the efficiency of the way clients are serviced, as well as increasing market share in one region.

Profitability goals are often created with productivity goals in mind. This type of goal focuses on the profit, growth and market share a company gains. Based on the productivity goal above, the profitability goal would not only focus on increasing the amount of clients in one region, but also in several different regions of the city where Happy Home is located.

Quality goals focus on creating consistency while improving the value of the products an organization offers. This type of goal directly affects productivity and profitability. An example of a goal for Happy Home would be to 'Deliver weekly coaching and development to staff members while performing random site visits and quality checks to ensure consistency.'

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