Objectives and Business Decisions: Why Communication Matters

Imagine you're a member of a basketball team. Your coach sets the objective of winning the championship. To achieve this, they might set smaller objectives like improving free throws, practicing teamwork drills, and scouting opponents. The same logic applies to businesses.

1. Objectives: The Roadmap to Success

-What are objectives? Objectives are specific goals that a business wants to achieve. They provide direction and purpose, like a roadmap guiding the company towards its destination. Think of them as the "why" behind everything a business does.

-Types of business objectives:

• Profitability: This is the most common objective – making a profit. Companies want to generate more revenue than their expenses.
• Growth: Businesses may aim to expand their market share, open new locations, or increase their customer base.
• Customer satisfaction: Happy customers are essential for long-term success. Businesses might focus on improving customer service, offering quality products, or building strong relationships.
• Innovation: Staying ahead of the curve is important. Businesses may focus on developing new products, improving existing ones, or embracing technology.
• Social responsibility: Some companies place emphasis on ethical practices, environmental sustainability, and contributing to society.

-Examples:

• Apple: Their objective is to become the most innovative and admired technology company.
• Starbucks: Their objective is to be the leading retailer of specialty coffee.
• Tesla: Their objective is to accelerate the world's transition to sustainable energy.

2. Business Decisions: Navigating the Road

-Why are objectives important for decisions? Objectives provide a framework for making sound business decisions. Each choice should contribute to reaching those objectives. Think of them as the compass guiding the company's direction.

-Examples:

• Marketing: A company aiming for growth might invest in a new marketing campaign to reach more customers.
• Product Development: A company focused on innovation might allocate resources to research and development of a new product.
• Hiring: A company prioritizing customer satisfaction might invest in hiring more customer service representatives.

3. The Need for Communication: Sharing the Roadmap

-Why communicate objectives? Effective communication is crucial to ensure everyone in the company is aligned and working towards the same goals. It creates a sense of purpose and understanding, motivating employees to contribute.

-Impact on the workforce:

• Motivation: Knowing the company's objectives gives employees a sense of direction and purpose. They understand how their individual contributions play a part in the bigger picture, making them more engaged and motivated.
• Alignment: Transparent communication keeps everyone on the same page, reducing confusion and ensuring everyone is working towards the same targets.
• Decision Making: Employees can make better decisions when they understand the company's objectives. They are more likely to make choices that contribute to the overall success.
• Innovation: Clear objectives can inspire employees to think creatively and come up with new ideas to achieve them.

-Examples:

• Company Meetings: Many organizations hold regular meetings where they discuss objectives, progress, and challenges.
• Performance Reviews: Objectives are often used as benchmarks during employee performance reviews.
• Company Newsletters: Some businesses use newsletters or intranet sites to communicate objectives and company updates to their workforce.

4. Real-world Examples:

• Amazon: Amazon's objective is to be Earth's most customer-centric company. This guides decisions like offering free shipping, developing the Kindle, and investing in innovative technologies like drone delivery.
• Google: Google's objective is to organize the world's information and make it universally accessible and useful. This drives decisions like developing search algorithms, creating Gmail, and launching Google Maps.

In Conclusion:

Clear objectives are essential for businesses to succeed. They provide direction, motivate employees, and guide decision-making. Effective communication of these objectives is crucial for keeping everyone aligned and working towards the same goals. The impact of well-communicated objectives on the workforce can be immense. It leads to a more motivated, engaged, and productive team, ultimately contributing to the company's success.