After working out what the Mission and Vision of your business are you will then need to link these to a plan of actions and measurements.
The actions and measurements are also known as: Goals; Objectives; Strategies; Critical Success Factors (CSF); and Key Performance Indicators (KPI).
Definitions of the above are:
Mission: The primary purpose of your business. What you do, who for and the benefit. What is the reason for your existence.
Vision: This is where you see your organisation ideally in the future. It should link the future with the current mission. Look 5 to 10 years into the future and ask what success would look like then.
Goals: These are broad, measurable aims that can be linked to the mission.
Objectives: These are specific, measurable targets that are linked to the goals.
Strategies: Provides a focus and helps achieve the mission of the business. Considering the future to see what needs to be done to achieve your goals.
Critical Success Factors (CSF): Key areas of the business that need to be done well in order to complete the business mission. What needs to be done to be successful.
Key Performances Indicators (KPI): Show how a business is performing in relation to its goals and objectives. Shows if we are successful or not.
By way of example, if your Goal is to improve your cashflow by 20% per month, then your Objectives might include reduce your accounts receivables and increase your accounts payables.
The Strategy might include the educating the accounts receivable and accounts payable departments on negotiating techniques.
The Critical Success Factor might be ensuring that all overdue clients / customers are contacted and asked to provide written confirmation of when they will pay.
The Key Performance Indicator might be the percentage of overdue clients / customers that have provided written confirmation of when they will pay.
If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com
