What Is the Business Difference Between Objectives & Goals?

by Leyla Norman, Demand Media

When you plan your business future, you will generate a list of potential achievements you want it to reach. These are goals. The specific steps you take to get to those achievements are your objectives. The terms objectives and goals are often used interchangeably, but they each have important differentiating attributes. They are used at different stages of the business planning process, and each serves a different purpose.
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Goals
Goals are statements you make about the future for your business. They represent your aspirations for it. You might say, We seek to be the most widespread widget maker in the country. This statement demonstrates that you have lofty plans for your business, but it does not say specifically how you can meet your goal.

Importance of Goals
Although the previous goal statement about widgets does not say specifically how your company can reach it, it does serve an important purpose. Setting goals helps define the direction that a business will take. Goals should align with your business mission and vision statements, which are even more general and abstract statements of your business values and aspirations. The language used in goals can be more emotional than is used in objectives. Goals allow business owners to think conceptually and not be stifled in their creative thought process.

Objectives
Objectives are the exact steps your company must take to reach its goals. They are written without emotion, and they are typically measurable and quantifiable. They also are realistic and attainable and have an associated timeline. For example, an objective for the goal statement of being the most widespread widget maker in the country might be, We will increase our sales by 3 percent in each quarter of this year in each region in which we currently operate. Another objective might be, We will open new branches and plants in two states per quarter this year.

Importance of Objectives
Businesses use objectives to measure their success and progress toward their goals. Without them, goals seem out of reach. Objectives can be motivational to business owners and employees, as meeting objectives provides a sense of accomplishment. When your objectives are easy to write, it is an indication that your overall business strategy is on the right track, according to business plan writer, Andrew Smith.

Strategies and Tactics

After you have written your goals and objectives, you can get even more specific in your business planning by writing strategies and tactics to achieve your objectives. Strategies are more abstract than tactics, and tactics are the exact things you can do to achieve your objectives. A strategy, for example, might be, Use print media to increase sales for the objective Increase sales by 5 percent next quarter. A tactic could be, Put an ad in the local newspaper every day during the next quarter.
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References

The Business Plan Blog; Goals and Objectives -- Know the Difference, Get Better Results; Andrew Smith; March 2008

Virginia Community Association Network; Goals and Objectives Your Keys to Success; 2004 Invisible CMO: Whats the Difference Between Goals, Objectives, Strategy and Tactics?

About the Author Leyla Norman has been a writer since 2008 and is a certified English as a second language teacher. She also has a master's degree in development studies and a Bachelor of Arts in anthropology.
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