are the lofty objectives that the firm's management decides to pursue. Vision describes some milestone that the firm will reach in the future and may require a decade or more to achieve. In contrast to the core ideology that the firm discovers, visionary goals are selected.
These visionary goals are longer term and more challenging than strategic or tactical goals. There may be only a 50% chance of realizing the vision, but the firm must believe that it can do so. Collins and Porras describe these lofty objectives as "Big, Hairy, Audacious Goals." These goals should be challenging enough so that people nearly gasp when they learn of them and realize the effort that will be required to reach them.
Most visionary goals fall into one of the following categories:
· Target – quantitative or qualitative goals such as a sales target or Ford's goal to "democratize
· Common enemy – centered on overtaking a specific firm such as the 1950's goal of Philip–
Morris to displace RJR.
· Role model – to become like another firm in a different industry or market. For example, a
cycling accessories firm might strive to become "the Nike of the cycling industry."
· Internal transformation – especially appropriate for very large corporations. For example, GE set the goal of becoming number one or number two in every market it serves.
7. Organizational goals and plans
A goal is a future target or end result that an organization wishes to achieve. A plan is the means devised for attempting to reach a goal.
The setting of goals and developing of plans leads to goal attainment and to organizational efficiency and effectiveness. Goals must satisfy the next requirements: goals should be clear, concise, and quantified when possible. At the same time they should be dynamic and reevaluated as the environment and opportunities change. Goals differ according to organizational level. Organizations typically have three levels of goals: strategic, tactical, and operational.
are broadly defined targets or future end results carried out at the top levels of the organization. Such goals usually focus on long–range issues – 5 years or more in the future – relating to the organization as a whole.
are targets or future end results set by middle management for specific departments or units. Tactical goals aim at intermediate–range issues – 1 to 5 years in the future. Goals at this level answer the question what must be done by various departments or units to achieve the results outlined in the strategic goals.
are targets or future end results set by lower management. Such goals orientate toward short–range issues –1 year or less. They address specific, measurable outcomes required from the lower levels.
The three levels of goals form a hierarchy of goals. Goals at each level are synchronized and not working against each other. Goals at various levels fit together to support a united effort geared to ultimately accomplishing organizational goals. So all goals at any level must be coordinated with, and subordinated to the goals of the next higher level.
Management by objectives (MBO) method allows organizations to facilitate the linking of goals and plans. MBO is a philosophy based on converting organizational goals into personal goals. In other words, MBO is the process through which specific goals are set collaboratively for the organization as a whole and every department or unit and individual within it.