1. What does mean Objectives, Why is so important to define...

how could you

categorize the objectives?

When we create a company it is necessary to have well-defined our mission, vision and values. To do
this, we must be clear about our objectives and the importance of why and for what we are creating the
company.

In companies, the objectives are the results that are intended to be achieved or the situations to which
they intend to achieve. Setting goals is essential to the success of a business, establishing a course to
follow and serving as a source of motivation for all members of the company.

Other reasons to establish objectives are:

 They allow focusing efforts towards the same direction.

 They serve as a guide for the formulation of strategies.
 They serve as a guide for the allocation of resources.
 They serve as the basis for carrying out tasks or activities.
 They allow to evaluate the results, when comparing the obtained results with the proposed objectives and, in
this way, to measure the efficiency or productivity of the company, of each area, of each group or of each
worker.
 Generate coordination, organization and control.
 Generate participation, commitment and motivation; and, when they reach them, they generate a degree of
satisfaction.
 They reveal priorities and produce synergy.
 They reduce uncertainty.

In addition, the characteristics of the objectives should be:

 Measurable: they must be measurable (quantitative and linked to a time limit). For example, instead of the
objective: "increase sales", a measurable objective would be: "increase sales by 20% for the next month".
However, it is possible to use generic objectives, but as long as these are accompanied by specific or
measurable objectives that, together, allow reaching the generic ones.
 Clears: it must have a clear, understandable and precise definition, it must not lend itself to confusion or leave
too many margins of interpretation.
 Achievable: It must be possible to achieve it, it must be within the possibilities of the company, taking into
account the capacity or resources (human, financial, technological, etc.) that it has. The availability of the time
necessary to comply with them must also be taken into account.
 Defiant: They must be challenging, but realistic. They should not be something that will happen anyway, but
something that means a challenge or a challenge. Unattractive goals are not very useful, although easy goals
at the beginning may serve as a stimulus to not abandon the road as soon as it has begun.
 Realists: They must take into account the conditions and circumstances of the environment in which they
intend to meet, for example, an unrealistic goal would be to increase from 10 to 1000 employees in a month.
The objectives must be reasonable, taking into account the environment, capacity and resources of the
company.
 Coherent: they must be aligned and be coherent with other objectives, with the vision, mission, policies,
organizational culture and values of the company.

There are many types of objectives that we can find.

- Types of objectives as a function of time

According to the duration of the time marked for the achievement of the objectives we can find:
o Long-term objectives: objectives that are formulated to be fulfilled within a period of 3-5
years.
o Medium-term objectives: objectives formulated for a period between 1 and 3 years.
o Short-term objectives: objectives set to be met in less than 1 year.
 - Types of objectives according to their nature

Depending on the degree of concretion of the objectives can be distinguished:

o General objectives: as an example of general objectives, we can find some of them as a
leading brand in the market, consolidate the patrimony, increase the number of sellers,
improve personnel training and qualification, etc.
o Specific objectives: business objectives expressed in terms of quantity and time. Examples
of specific objectives are: increase quarterly sales by 20%, acquire 2 new machines in the
second semester or open 3 new locations internationally in the quarter of next year.

- Types of objectives according to their hierarchy

Depending on the importance and the scope of application, we can classify them into:
o Strategic objectives: objectives that look at the company as a general whole and that seek
the sustained and constant growth of the company. They are objectives formulated directly
by managers and senior officials. Normally, they are general long-term objectives. To
achieve this, as a general rule, it is necessary to formulate several tactical objectives that
reinforce it.
o Tactical objectives: business objectives formulated for each of the departments of the
company. They are also formulated by the managers and senior managers of the company.
In order to achieve this tactical objective, you will need to rely on the reinforcement of
several operational objectives.
o Operational objectives: Objectives that are given at the operational level, formulated
directly for a worker. They are formulated by the heads of each department or area.
Normally, they are specific short-term objectives.

- Types of objectives according to the way they measure

If we refer to strategic planning as a fundamental and decisive process for reaching the previously
proposed goals, it is crucial to differentiate between:
o Quantitative objectives: Objectives that the company sets to obtain better economic results,
usually focusing on the short term. For example: increase the number of orders, increase
the number of commercial visits, forecast sales by geographical areas, etc.
o Qualitative objectives: Objectives that the company sets to achieve a better positioning and
image in the market in which it competes. As a general rule, the economic results are more
appreciated in the medium / long term. As examples of qualitative objectives, we find:
introduction of new products, achieving greater national coverage, attracting new
customers, etc.

Definitely, the company is a great entity that feeds from each and every one of the areas that compose
it, as well as all the workers who contribute their bit to achieve each and every one of the objectives that
are established. All business objectives must be aligned and seek the same goal, so, communication and
transparency of information is essential.

2. Why is important to build a strategic planning, what is the relation to BSC?

The executives responsible for conducting the process of Strategic Planning in organizations, today
have many methodologies and best practices that allow them to provide the executive team with tools to
develop a strategy that allows them to achieve the results required by their respective visions.

The analysis of the value proposition, the PEST analysis (political, economic, social and technological),
the analysis of the 5 Porter Forces, the BCG matrix (Boston Consulting Group), the value chain analysis,
the strategy of the Blue ocean, among others, are many of the best practices that are used today during
the Strategic Planning process.
Where does the Balanced Scorecard come in?

The balanced scorecard has up to 3 moments of intervention in the process of strategy management:

- In planning, through the standardization of their concepts allows the executive team to have the
same language and understanding about the definition of objectives, projects, indicators and goals.
This clarity, although it is simple, will allow the team to identify objectives that are durable over time
and above all that communicate a constant challenge to the organization.
- In Execution, the balanced scorecard has a very powerful management element in the "strategic
map". The strategic maps allow the rest of the organization to be communicated in a simple, clear
and concrete manner, which is the way in which value is built, allowing the collaborators to identify
how from the execution they contribute to the strategy. Today many organizations frame their
strategic maps and place them next to the pictures that describe the vision.
- In the Evaluation, (or strategic control), it is a tool that allows to put on the table of the management
committee, which are the focal points of strategic attention that should be reviewed. The review of
the management elements of the balanced scorecard: performance of the management indicators,
progress of the projects or strategic actions, fulfillment of the commitments, etc. guarantees that
the analysis of the strategy becomes a continuous process, allowing organizations to make
decisions based on what is critical to lead them towards the achievement of their goals.