2023 Tax Calendar
VIEWpoint Issue 2 | 2022
Inflation Reduction Act: Highlights of Key Changes for You and Yo...
The 2022 Gift Tax Return Deadline Is Coming Up Soon
HUD Strengthens the Effects Test
President Biden’s Proposed Budget Includes Notable Tax Provis...
By David Ritter, CVA, MBA – Shareholder
How do goals and objectives differ? Can your team distinguish the difference between a strategy and a tactic? Does your organization differentiate its mission and its vision?
These are all fairly basic concepts on the surface, but when you ask a room of people, these terms are often misinterpreted. If you (and your team) cannot decipher the difference between these fundamental concepts, the strategic planning process can be a difficult endeavor and nearly impossible to complete successfully.
We’ve all been in those meetings where words are taken out of context or misconstrued, leading to discussions going way off topic or nowhere very fast. This often takes place with some of the most fundamental concepts used in the strategic planning process. Instead of charting the course for your organization’s strategic focus, the meeting becomes an iterative (and often times spirited) discussion as to what the definitions of the fundamental concepts represents.
Before you move forward with something as important as planning your business’ future, consider getting back to the basics and gain a common understanding of the definitions used in the strategic planning process. Without it, there will be many false starts in the boardroom.
Consider these fundamental terms, including the provided explanations and characteristics, to use as a reference and help provide a structure in determining key strategic planning areas.
Vision has a qualitative characteristic and is focused on the “ideal” or “dream” of the organization, which is founded on your company’s core values and future intentions. Often confused with the mission statement, which is focused on a more action-oriented quality, a vision statement has an aspirational characteristic.
Some well-known vision statements include:
This is the fundamental purpose of the organization – the “what we do and why we do it.” The end goal of any mission statement is to provide overall focus for the organization.
Some commonly recognized mission statements include:
Goals are general statements created by your organization to accomplish its aligned mission and provide further clarity to its vision. While they are still qualitative in nature and similar to the mission in terms of “what” the organization does, goals specify the short- and long-term direction as to where resources will be focused.
It is important to remember goals are not the “how,” but rather the “what” and “where.” Often organizational goals begin with a verb because they are related to a primary outcome. Common business goals may include:
Objectives and goals are often misinterpreted as one in the same. While goals identify the organization’s qualitative direction, objectives portray the quantifiable characteristic. By adding a measurable characteristic, the organization’s goals become objectives.
For example, your business might set the following objectives:
Strategies illustrate the approach toward achieving the measurable objective. They should be continuously modified to account for the changing business environment affecting the organization.
Some common strategic considerations include:
Frameworks for Developing Strategies
While developing strategies for your business, frameworks are often employed to help determine methods for achieving the objectives. There are almost as many frameworks as there are strategies to consider. Some common frameworks are outlined below.
Porter’s Five Competitive Forces
This method analyzes competitive pressures of supplier power, buyer power, competitive rivalry within its industry, barriers to entry and threat of substitutes.
The Four P’s
This method focuses primarily on how the price, placement (delivery channels), promotions, and products/services dictate the brand and product/service strategy.
By analyzing the organization’s strength, weaknesses, opportunities and threats, you can determine strategies to:
Tactics are action items created to accomplish business goals and meet its objectives, and ultimately fulfill its strategies. To accomplish your business’ tactics, numerous action steps may be required for each objective outlined. Tactics typically include responsibility, resources and the deadlines for completion.
Approaching strategic planning from the basics will help your organization focus on creating a valuable plan in the boardroom. Ensuring the entire organization understands the differences of each component, and how each part builds off the other is an important first step. You may want to consider hiring an outside facilitator, like Doeren Mayhew, to help your business define each component, bring a fresh perspective to the table and keep the discussion on track to help develop a plan for success.
See what strategic planning service offerings Doeren Mayhew has available for your business to leverage. Contact us to get your planning started.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
A quick registration is required to view our resources.
You will only be asked to do this one time (unless you don't save your browser cookies).