Organizational Objectives: How to Set Them

Goal Setting Guide

This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.

Introduction to Setting Organizational Objectives

No business can survive, let alone thrive, without setting and meeting objectives. Organizational objectives show a company what it needs to do and how to tell if those things are being done. By defining its objectives, a company creates a roadmap to success and a sense of purpose for employees.

In this article, we discuss:

The importance of organizational objectives
The process of setting objectives
How to cascade company goals down to individual goals
Challenges that can hinder the implementation of objectives

Looking for a powerful platform that helps you set and track your organizational objectives? You can grab a free trial with Wrike today.

Why are organizational goals important?

Organizational goals are critical because they:

Provide a defined sense of direction and purpose for the entire organization
Align the efforts of different departments and teams according to timeframes, ensuring everyone works toward common goals
Act as a basis for measuring performance and evaluating progress
Help managers allocate resources and prioritize tasks
Motivate employees by creating a sense of accomplishment

Both short-term and long-term objectives can span financial, operational, and other aspects of a business. Although specific goals may vary according to the size of a company, in general, any company will find setting organizational objectives useful.

How to set organizational goals

Not surprisingly, organizational objectives should line up with the organization’s vision and mission. Having employees, managers, and executives participate in setting long-term goals ensures their buy-in. This collaborative approach generates more realistic objectives because stakeholders can provide valuable insights and identify potential challenges based on their experience.

Once objectives are set, it’s essential to communicate the official goals across the organization. Clear communication ensures that everyone is aware of the goals and their role in achieving them, creating a sense of shared responsibility.

How to cascade organizational objectives to individual goals

Cascading, or breaking down, high-level organizational objectives guarantees that everyone in the organization is working toward the same ends. The following step-by-step approach shows you how to cascade organizational objectives:

Break down organizational goals and objectives: Smaller, more manageable departmental or team goals show each department or team how they can contribute
Involve department heads and team leaders: Have higher-ups set subgoals based on the organization’s priorities and communicate the subgoals to their teams
Set individual goals: Team leaders should help each individual set relevant SMART goals that take into account the employee’s role, skills, and areas of expertise

Regularly review and adjust goals: Take changes in the business environment or new opportunities into account
Provide support and resources: Help employees achieve their individual goals by supplying what they need to succeed

A practical example of cascading an organizational objective

Let’s say you work at a software development company that wants to increase its annual revenue by 25%. Here’s how you could cascade this objective down to individual goals.

Break down the organizational objective into departmental goals

Sales: Increase the number of new contracts by 12.5%
Marketing: Boost lead generation by 33%
Customer service: Increase customer satisfaction by 40% according to customer support survey results

Involve department heads and team leaders

Encourage managers to work with their teams to develop strategies for achieving their respective departmental goals.

Set individual goals

Give sales reps specific targets for closing new deals
Make marketing specialists responsible for implementing campaigns to generate a certain number of leads
Ask customer service representatives to reach out to existing clients to see if they’re satisfied with the product and resolve potential issues

Review and adjust goals

Conduct monthly or quarterly reviews to assess progress and adjust individual goals as needed.

Provide support and resources

Invest in sales training programs and marketing automation tools to help teams achieve their individual goals.

By cascading organizational objectives down to individual goals in this way, you could get all employees working together to increase annual revenue by 25%.

Challenges in setting and achieving organizational objectives

It’s not all plain sailing, however. Organizations may face several challenges in setting and achieving objectives:

Unrealistic expectations: Setting impossible goals can lead to disappointment and demotivation
Poor communication: Inadequate communication of objectives can cause confusion and waste resources
Insufficient resources: Organizations may struggle to achieve objectives if they lack funding, personnel, or equipment
Resistance to change: Employees may resist new objectives that involve significant changes to their roles or responsibilities

Tips for successfully implementing organizational objectives

How can you overcome the above challenges and successfully implement organizational objectives? Consider the following tips:

Involve stakeholders in the goal setting process
Set SMART goals
Communicate objectives clearly and consistently throughout the organization
Allocate sufficient resources and support
Provide regular progress updates and adjust goals if required
Encourage employees to take ownership of their goals
Offer training and support to help employees adapt to new objectives and overcome obstacles
Celebrate milestones and recognize the importance of individual employee performance

Set and cascade organizational goals with Wrike

Now it’s time to put those tips into action.

Organizational objectives guide the activities of a company and the efforts of its employees. When organizations set SMART goals that reflect the organization’s vision and mission, and cascade them to individual goals, success isn’t far off.

Wrike’s platform helps companies select major objectives and break them down into actionable projects and tasks. The platform serves as a central hub where goals can be documented, assigned, and tracked throughout the organization.

Through pre-built templates, clear visualization, progress tracking, and real-time collaboration features, goal alignment is a breeze with Wrike. Whether you’re talking about large-scale initiatives or day-to-day tasks, Wrike empowers companies to cascade their organizational goals and achieve success — every single time.

How to Achieve Goals and Ensure Success Department Objectives: How to Set Them