By achieving life goals, the meaning of human life is determined, the same can be said about the existence of each company, whether it be state, charitable, public or commercial, organization goal tree - a simple example. Any enterprise, individual entrepreneur or association pursues its goals, which are the reason for their functioning and existence. Let's consider different types of tasks and use the example of a company to build an example of a goal tree.
Purpose and mission
Each enterprise in the course of work develops its mission - the main task that justifies the existence of the organization. For example, for a charitable company, it means helping people with cancer. For a commercial company - to earn maximum profit, for a social organization - the achievement of a significant social task, for example, adaptation in the modern world of children with disabilities.
The process of achieving the mission will be divided into goals, “steps”, overcoming which you can get as close as possible to solving the main task.
Types of goals
Any company for the near future sets for itself several aspirations and desires, which can be long-term, medium-term and short-term. It usually takes no more than 12 months to solve a short-term goal, medium-term goals - from one year to five or six years, and at least 5 years are required to solve a long-term problem.
How goals are set
In general, the goals for the entire organization or for each of its divisions are set by the center, or decentralized and centralized to the heads of departments. It all depends on what kind of management system is adopted at the enterprise.
The decentralized method of setting goals can develop in two directions. In the first method - from the bottom up, initially goals are set in departments, and management, on the basis of them, determines the main tasks of the organization and ways to resolve them. In the second method - from top to bottom, large tasks are set by the center, and managers, in order to solve them, develop their smaller goals on the ground and set them for the staff and workers.
The task tree on the example of a company is compiled based on the analysis of the impact of the external and internal environment at the enterprise, adhering to the main goal of the organization. And only then are individual and specific goals set.
Goal tree on the example of an organization
Viewing an example goal tree in a graphical display helps to visualize the task model of the organization. With it, it is easy to arrange the degree of importance of tasks. To build such a chart, there are conditional positions.
The overall mission (goal) of the company is placed at the top of the tree. Then it is divided into separate subtasks, without which the main task cannot be completed. When formulating the task, it is necessary to describe the desired result, but it is not necessary to indicate the way to achieve it. Goals should be on the same level, not arising from each other and independent of each other.
For each organization, the set of goals is purely individual. However, several areas of activity can be distinguished, any company will find its interest in them:
Production
Personnel policy
Finance and politics
Sales policy
The number of levels into which the main task of the organization is divided depends on the complexity of the goal, the size of the company, the hierarchy in management and organizational structure.
An example of an organization's goal tree:
Examples of Specific Organizational Tasks
In different areas of activity, the organization has its own goals, let's consider some of them.
Marketing
Expansion of the product range
Market Promotion
Production
Development and implementation of modern technologies
Improving product competitiveness
Improving production efficiency
Cost reduction
Staff
Increasing labor productivity
Incentive system
Personnel optimization
Training
An example of an organization goal tree #2:
Finance
Multiplication of investment attractiveness
Improvement of profitability and solvency
Effective financial management of the organization
Setting goals for the organization is of great importance - this is the basis for building relationships within the organization, and only by solving the tasks set can one evaluate and control the progress and results of the work of departments, personnel and the entire structure as a whole.
The success of an organization depends largely on good planning. Maximum profit and high profitability in the future is always the general goal. What is the role of the goal tree in planning?
What is objective tree
Management goals are presented in a large number and variety, so every enterprise needs a comprehensive, systematic approach to choosing their composition. The process of setting goals is called goal setting.
The objective tree of an organization is:
- structured list, scheme of organizational goals;
- hierarchy of multi-level goals;
- a model that allows you to streamline and combine goals into a single complex.
The product of applying this method of strategic planning should be a logical and simple enterprise management scheme. The goal tree makes it possible to justify the general goal and makes sub-goals more achievable.
The system of goals is determined by the organizational structure. A huge structure, a large number of departments and work lines will require the development of a complex "branching" tree with many decomposition levels.
Vertex
The tree is filled "from top to bottom", from the central goals to secondary tasks. At the “top” (“root”) there is a general goal, the achievement of which is not an easy task. This means that it is necessary to decompose it into smaller elements, “branch goals”, that is, to decompose. So there is a plan of movement to the main goal.
All subsequent levels are formed in such a way as to contribute to the achievement of the previous one.
| Target | Content |
| Economic | Maximizing profits from sales of products or services in the required quality and volume |
| Scientific and technical | Maintaining products and services at a given scientific and technical level, R&D, increasing labor productivity through the introduction of know-how |
| Production | Implementation of the production plan. Maintaining the rhythm and quality of production |
| Social | Improvement, development and replenishment of human resources |
branches and leaves
Branches - subgoals extending from the top, are again decomposed. Branch Runs are the next level of objectives. The process is repeated at each level until the goals are simplified. Simplicity is reachability, understandability and logic.
All "branches" describe the result that expresses a specific indicator. The goals of one parallel are independent of each other.
An enterprise goal tree is created based on 3 important elements of any goal.
"Leaves" are specific activities to achieve the goal. The characteristics and indicators indicated on the "leaves" contribute to the choice of the best option:
- period of execution;
- the probability of achieving the goal by the planned date;
- cost indicators;
- the amount of consumed resources.
Tree elements in the same group are interconnected through the logical "AND" (denoted by "∧"). Alternative groups interact through "OR" ("∨").
The organization's goals tree. Example
Let's consider a simple scheme of goals for maximizing profit while increasing results and reducing costs.
To approach the general goal (high profitability and maximum profit), three directions have to be worked out. Enter the resulting options in the organization's goal tree. The example is presented in the form of a table.
Apple strategy and goals
Why is Apple's strategy winning?
The company's field of activity is information and radically new products for working with it. The priority is the process of creating content and its consumption.
For example, Apple paid attention to cultural aspects. The music consumption model has been improved. With iPod, listening to digital music and surfing the Internet has never been easier.
The iPod, iPhone, and iPad lineup fixes the bugs, improves the basic ways to create and use information. This model, used for laptops, desktop computers, television, will allow the "apple" corporation to further increase income.
The result of the decade was three universal inventions and business platforms. They are not an end in themselves, but a means to achieve the goal: gaining access to the main ways of information consumption.
It is natural that the general strategy of Apple is the development of an existing product line.
Building a tree of organization goals using the example of Apple
The main goal of any business is to expand the market boundaries, to win an infinite number of customers. Apple is no exception and prioritizes improving its product line for the benefit of the consumer.
Consider a company goal tree for a product like the iPhone, whose value reflects the motto “Simple. Conveniently. Aesthetically." As the main goal of the tree, we will define the improvement of the iPhone, taking into account the interests of potential users.
The main competitive and significant factors for the consumer of this market are:
- product cost;
- a variety of functions and an energy-intensive battery;
- brand popularity;
- technology for connoisseurs;
- design and size;
- range (was discontinued by Apple).
The tree of goals will help answer the question: “What to do?”. For example, to reduce the cost, it is necessary to simplify the interface.
What industry factors need to be created? What features to improve? These are memory, design, games and entertainment. What to focus on: the functional component or the emotional?
Table with iPhone subgoals on three levels
Apple's goal tree is presented in a simplified version in the form of a table.
| Improving the iPhone with Consumers in Mind | |||
| First level goals | |||
| 1. Eliminate assortment and brand popularity | 2. Simplify the interface | 3. Increasing consumer appeal | 4. Increasing ergonomics |
| Second level goals | |||
| 2.1. Simplify Manufacturability | 3.1. Create a new design | 4.1. Special status of the owner | |
| 3.2. Increasing the amount of memory | 4.2. Last Mile Solution | ||
| 3.3. Strengthening the entertainment aspect | 4.3. Reduce size | ||
To solve the "last mile", the following tasks were identified:
- Use touch screen and achieve the absence of buttons.
- Create additional options.
- Enlarge screen.
The next step is to fill in the "leaves" or activities to achieve the subgoals. For this, specific deadlines for completing tasks, the required volume, resources, cost and significant quantitative indicators are necessarily indicated.
The last step is to draw the targets in the form of a branched tree.
Task tree. Example
Tasks are called subgoals. They do not need decomposition and “end-means” linkages. The tree of goals includes the goals of the highest and lowest levels.
Objectives are the basis for creating a program to achieve a specific goal at the grassroots level. Problem solving is a set of actions.
The tree of goals, as an option, may contain the following tasks.
Thus, the goal tree becomes an ordering tool for creating a company development program. Examples confirm the principle of its formation “completeness of reduction”: goals are “split” into subgoals until the original goal becomes clear and achievable.
1. Introduction
2. The system of goals of the organization.
3. Practical part. Formation of the goals of the organization "Angara"
4. References
Introduction
The goals of the organization express the result to which the employees united in the organization are called upon to strive for joint work, or the state to which they intend to come as a result of joint activities.
Organizations exist to achieve certain goals, the management system is responsible for the efficient use of resources to achieve these goals.
In this control work, it is necessary to describe the system of goals of the organization, its types, significance and requirements for goals. And also, using the example of the Angara enterprise, show:
Formation of the initial skills of determining the main and main general goals of the organization (firm, enterprise) implementing the accepted theme of the business process project;
Obtaining initial management skills for the formation of the main characteristics of the project / business process being deployed.
The system of organization goals .
Objectives should be seen as the guidelines by which the organization operates. Correctly chosen guidelines predetermine the success of the organization, and, conversely, mistakes along the way can threaten its existence.
The goals of the organization are systemic in nature, suggesting their certain classification.
1. According to the degree of importance for the organization, the goals are divided into strategic and tactical.
Strategic goals include a description of the main plans of the organization for a period of 1-5 years. In addition, this plan describes the amount and timing of investments in the development of the company for approximately the same period of time. As a result of the analysis, the manager determines the market potential, ways to realize it, options for allocating resources and obligations to shareholders.
2. Based on the period of time required for their implementation, the goals are divided into long-term (over five years), medium-term (from one to five years) and short-term (up to one year).
Long-term goals are clear, simple, commensurate provisions that describe the results that the company seeks to achieve over a period of 3 to 5 years. When an analysis of long-term goals and a strategic plan is made, the personnel working in the company form for themselves a general idea of \u200b\u200bthe direction in which production will develop. But the planning process does not end there. Next, you need to decide what exactly the company will do this year.
Short-term goals - play an additional role in the process of setting goals and in general in drawing up a plan. These goals define what needs to be done immediately to establish a match between short-term results and long-term prospects, as well as provide a basis for monitoring and controlling the implementation of strategic decisions made earlier in the planning process by company managers.
4. According to the level to which they relate, the goals are divided into general and specific.
In order to manage the efforts and activities of the organization as a whole, each manager must have an understanding of the overall goals associated with the fundamental reasons for the formation of the company.
There are three main elements that must be contained in the goal in order for it to be effective, this is the overall task, value, and mission of the company. The goals of an organization can be defined as the main reason for its existence. This definition usually follows from the context of the specific situation in which the firm operates. In setting the overall goal, which reflects the main reason for the creation of the company, the manager usually focuses on the circle of stakeholders chosen by him, for whom, in fact, the business was created. As a rule, they include consumers, employees, public organizations within the firm and the owners of the firm. The main economic categories that are mentioned in the goals are survival under existing conditions and profitability growth.
While organizational goals carry a very large semantic load, they are still not a central element in the system of general goals. Therefore, it is worth moving on to the next type of goals, which focuses on areas in which the firm will make special efforts. This type of goals has been called the mission of the organization.
The mission of the organization is an element of the overall goal that distinguishes this organization from others and indicates the scope of its activities, product type and market type. A well-developed firm's mission statement should be clearly and consistently aligned with the organization's structure and specific goals. Since the intended directions of activity are formed in accordance with organizational goals, the manager chooses the way in which these goals will be achieved. This path is the mission.
Experienced managers usually pay attention to three main elements in mission development:
1. The main product (service) produced by the company.
2. The main market for the sale of goods (services).
3.Technological production system.
Each of these three elements is indispensable, since only their combination makes up a complete picture of the company's activities.
The value of the organization. Recently, managers of various firms quite often have to do special work with their employees to explain the significance of this production and its benefits to society as a whole. The value of the organization, as already mentioned, is a philosophical and ethical category, externally and internally corresponding to the goals and mission of the company. In the process of confirming the importance of their production, the company's top managers are trying to acquaint the widest possible range of consumers with their products. At the same time, similar work is carried out within the organization, only in this case the significance of the company is explained through the goals facing it.
Constant changes in the external and internal environment of the organization lead to the fact that the goals have to be adjusted or revised accordingly.
As a result, the organization develops a certain system of goals, as well as a mechanism for its constant updating. Within this system, the goals are usually in certain relationships to each other.
Based on the goals, the organization formulates the tasks that must be solved in the process of achieving them. The tasks are more specific and have not only qualitative, but also quantitative, spatial and temporal characteristics.
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Thus, the final phase of planning, in which goals, again, play a significant role, requires the manager to define specific, short-term tasks that represent an intermediate stage in the strategic plan, as well as draw up plans for individual links in his organization. When the focus is on the goal, everything described in the plan takes on a clear meaning of what will be done, when and by whom. In this case, the goals perform a central, organizing function, making the planning process real and meaningful. For goals to fully fulfill this function, they must be clear and have the potential to be effective. Therefore, we will pay special attention to a more detailed consideration of some categories of the system of goals.
The general goals that determine the main direction of development of production suggest an appropriate style of management and decision-making throughout the life of the company. But this is far from enough to manage the company. It needs to set more specific, as well as specific tasks for all divisions and departments. First of all, it is necessary to develop goals for a period of 3 to 5 years. These goals are called long-term goals. They are designed both for the company as a whole and for its structural units. In addition, they are the basis for corporate coordination and a benchmark for determining the degree of success in the company's actions.
In addition, the manager also develops specific short-term goals that provide for immediate actions (for 1 year or less). They, however, must be strictly subordinated to the idea of long-term goals. There are the following main specific short-term goals.
survival and growth. The manager enters into it such indicators as sales volume, sales growth rates, demand data, etc. Moreover, special attention is paid to growth indicators.
Profitability. The ability of any firm to develop to a sufficient level of profitability.
Allocation of resources and risks. Another example of the goals of a business organization are the goals related to the allocation of resources and the prediction of possible risks that arise during the period of the organization's inception.
Production productivity. One of the tasks of the manager of any firm is to take care of increasing the level of productivity.
competitive position. The most sensitive indicator of a firm's success or failure is its industry market share or competitive position.
Professional development of employees and relations with the team.
Technological activity. The manager must decide almost constantly the question of; whether it is worth carrying out technical re-equipment in a given month (year) or will production be efficient on the existing technological base.
Responsibility to society. In such a company, the manager, when setting goals, will take into account all local, national and international features of the environment.
The following general requirements are imposed on the process of goal-setting in management.
Goals should include deadlines for achieving them. Setting a time frame is important for both long-term and short-term goals, but time frames are not often set when setting overall goals relating to the purpose of an organization's mission.
Goals should be short. Long-term and short-term goals are most effective when they are short.
Goals should call for exceeding standards.
Goals must be realistic. Goals that set the bar too high will never be achieved.
Goals must be flexible. Objectives should be flexible enough so that they can be improved in the event of unpredictable or extraordinary changes in the situation in the firm.
Goals must be acceptable. A goal is more effective when the people who are responsible for achieving it find it acceptable.
At each level of the organization, some particular goals arise, and only their totality must be considered as a certain goal of a certain level of management. Hence the need to build goal tree.
"Tree of Goals"- a structured, built on a hierarchical principle (distributed by levels, ranked) set of goals of the economic system, program, plan, in which the following are highlighted: general goal ("top of the tree"); subordinate subgoals of the first, second and subsequent levels ("tree branches"). The name "goal tree" is due to the fact that a schematically represented set of goals distributed over levels resembles an inverted tree in appearance. An example of a "goal tree" ": general purpose - satisfaction of human needs for food, subgoals of the first level - satisfaction of needs for proteins, fats, carbohydrates, vitamins, subgoals of the second level- satisfaction of needs for bread, milk, butter, vegetables, fruits, etc.
Figure 1 - Goal tree
Therefore, in modern management the concept of purpose is one of the main ones. Without defining this concept, without identifying the correlation of goals, means of achieving goals, evaluating the effectiveness and ways to achieve goals, it is impossible to solve the problem of effective management. This means that without a clear formulation of the goals of functioning, it is impossible to comprehensively solve any problem related to building a company, planning its activities, evaluating efficiency, and developing its strategy.
When the goal of functioning is not clearly formulated, it is practically useless to demand a clear organization of work, since it is impossible to choose the right means to achieve the goal.
Formation of the goals of the organization.
Consider the formation of goals on the example of the Angara confectionery enterprise.
The mission of the Angara enterprise is to take a leading position in the confectionery market by manufacturing products taking into account the individual wishes of customers based on the use of advanced technology that meets environmental standards.
Definition of strategic goals and objectives of the organization
The strategic goals and objectives of the Angara enterprise are presented in Table 1.1. – Strategic goals and objectives
Angara enterprise value system
The value system of the Angara enterprise includes the following aspects:
innovation, exclusivity, creativity;
· high level of technology and quality - products are certified for compliance with the requirements of the world standard of quality management system ISO 9001: 2000;
· Orientation to the client - the satisfaction of his needs is at the forefront: "The client is always right!";
· focus on their employees, which involves not only high demands, but also attention, care and assistance to the development of personnel;
democratic style of leadership and management;
Decision-making processes are collective in nature;
Preference for personal contacts with top management, holding general meetings.
| Strategic planning area | Strategic goals of the organization | Tasks |
| Market relations with the consumer | Take a leading position in the confectionery market in Irkutsk | fix a certain segment of the confectionery market within 5 years; drive out the main competitors; concentrate efforts on the selected market segment to hold positions. |
| Innovation | Increase sales and attract new customers by introducing new recipes and technologies | make quarterly purchase deductions new equipment in the amount of 8% of the profit; annually participate in international forums of confectioners and exhibitions of confectionery products, for cooperation and attraction of knowledge of foreign colleagues. equip with modern, automated equipment and special confectionery devices; carry out annual modernization of existing equipment at the expense of a special reserve created at the enterprise; to improve existing manufacturing technologies by developing calculation cards. |
| Performance | Achieve high productivity by competently minimizing production costs | finance technical equipment and re-equipment monthly in the amount of 10% of the profit; At the expense of financing, introduce a modern technical and technological basis for confectionery production, which guarantees a uniform distribution of components and the achievement of the required ratio between them and microadditives in each single product, which will ensure the production of products comparable in their characteristics to the best domestic and foreign analogues, as well as to reducing costs per unit of production. Conduct continuous monitoring of the production process to quickly identify deviations from the norms and violations with their subsequent elimination at an early stage |
| Financial resources | Ensure a stable level of the financial sector of the enterprise | Create a financial reserve fund for the needs of the enterprise, which must be replenished monthly in the amount of 3% of profits; Conduct a clear control over the material and technical support, financial and economic performance of the enterprise. Annually conduct audits at the expense of the reserve fund, deductions to which are made monthly and amount to 3% of the profit. |
| Profitability | To ensure the accumulation of profits from the production and marketing of products sufficient to fulfill obligations to creditors. Ensure the sale of products of the confectionery shop on the local market, as well as enter the Ukrainian market | Conduct quarterly marketing research at the expense of a special reserve, which is funded monthly in the amount of 8% of profits, conduct benchmarking; According to the results of marketing research, carry out concentric diversification, i.e. replenish the assortment with new products. Establish business relations with the regions by providing a business plan, a strategic management plan, as well as trial marketing and tasting. |
| Management activity and its development | Determine the main areas of managerial influence, priority tasks and methods for their solution, ensuring the achievement of planned results. | Conduct current and strategic planning; Conduct quarterly monitoring; Maintain a vertical organizational structure; Give preference to personal communication with employees; Focus on collective participation in the decision-making process; Participate in business trainings every six months to improve skills and introduce new methods of rational enterprise management. |
| Work activities and attitudes of employees | Motivate the team to improve the efficiency of labor activity. | During the first months of work, create and improve a system of motivations, including the implementation of the needs of employees in a decent assessment of work, a system of incentives and social guarantees. To establish the discipline of labor activity to maintain the corporate spirit and create the correct image of the enterprise. Hold general monthly meetings to solve current and strategic tasks, announce the company's indicators, and ways to increase or maintain them at the proper level, identify the situation in the team. |
| Commitment to society | Satisfy the needs of the population in high-quality products without harming the environment. | During the first year, organize the environmental safety of production and create an effective system of heat and energy saving through the use of modern technologies and equipment, the purchase of which is planned at the expense of the reserve fund. |
For this company, trademarks and the company's team are the basis of success. Employees of the Angara enterprise embody the moral and ethical values of the company, achieving the main goal - to improve the lives of consumers. The company's goal is to produce goods and services of the highest quality and customer value. The company's activity is built on the principle - "Consumers help to take a leading position in terms of sales, ensure the prosperity of the business, which contributes to the well-being of employees." The principles of the company are based on respect for the individual. The interests of the company and the employee are inseparable, the goals are clearly defined, innovation is the basis of success. The organization actively interacts with the external environment, which consists of competitors, partners, consumers; the professionalism of the company's employees and their desire to be the best in this business receive special appreciation. The company has chosen interaction and mutual assistance as the basis of its lifestyle. And, of course, the main goal of the enterprise is to make a profit, ensure the stability of the company and create jobs.
The tree of goals of the organization LLC "Angara"
Bibliography.
1. Zaitseva O.A., Radugin A.A., Fundamentals of Management.: Textbook for Universities.- M.; Center, 1998. - 432 p.
2. Nelson B., Savings P., Ability to manage.: Per. from English - K .: Dialectics, 1997. - 336 p.
3. Management: Textbook / Ed. Ignatieva A.V. - M.: Infra-M, 2010.- 283 p.
4. Management: Textbook / Ed. Maksimtsova M.M., Komarova M.A.-M.: UNITY-DANA, 2008.-320 p.
5. Bukhalkov M.I. Intra-company planning: Textbook. – M.: INFRA-M, 1999. – 392 p.
Very often in companies, you can see the strategy as a weighty document containing a lot of heterogeneous information, while the responsibility for achieving the strategy is assigned only to the CEO. I will look at how to formalize and digitize a strategy by creating a tree of goals, assign employees responsible for achieving goals, define indicators to measure progress towards achieving goals, and define a program of projects that will ensure the implementation of the strategy.
History of the management by objectives approach
The technology of management by goals has serious founders and a long history of development. The concept of management by objectives (MBO) was introduced into business practice as early as 1954 by Peter Drucker. Management by objectives is based on the formalized goals of the company, the goals of the company's employees, as well as regular procedures for assessing progress in achieving goals.
According to Peter Drucker's technology, management by objectives is built in accordance with five basic principles. The first principle implies the development of goals to the level of each employee, while the goals of the employee should follow directly from the goals of the organization. The second principle states that goal development uses top-down goal granularity from strategy level to employee level, as well as bottom-up goal aggregation to link employee goals to company goals. The third principle provides for the interaction of the manager and the employee in the formulation of goals, and not simply bringing the goals set to the employee without the possibility of discussing and adjusting them. The fourth principle requires regular assessment of progress in achieving goals and analyzing feedback from employees. Well, the fifth involves the use of the SMART principle when formalizing goals.
Goal tree - building
So what is a goal? The goal is the desired state of the company on the strategic planning horizon, which can vary from one to ten years depending on the industry and the size of the company. In fact, the mission of the company and the vision of the owner is the basis for building a tree of goals, which is detailed "top-down" from the mission according to the principle "what does it mean?".
The concept of the "goal tree" was first proposed by Ch. Churchman and R. Ackoff in 1957 and is a structuring tool used to determine and formalize the target state of the company and create a program for its development.
A goal tree is a structured, hierarchically built set of organization goals, in which the main goal (mission) is highlighted, as well as subgoals of the first, second and subsequent levels of detail subordinated to it.
When building a tree of goals in practice, it must be taken into account that the goal will be achieved when all its subgoals are achieved, thus ensuring the completeness of goal setting and the connectivity of goals between levels.
According to the technology, the goal tree is formed “from top to bottom” level by level, until it becomes possible to “digitize” the goal with indicators, as well as appoint a responsible employee for its achievement. In practice, the goal tree is often limited to two or three levels of detail, because when formalizing goals, the main thing is to stop in time so as not to go into excessive detail.
This is the difference from the "classic" approach of Peter Drucker, which involves bringing the goal to each employee. In projects, it can be difficult to “drag” goals to the level of heads of key departments, and not just to every ordinary employee.
Therefore, the detailing of the goal tree stops after the responsible person is appointed for the goal, the goal has become measurable with the help of an indicator, and projects aimed at achieving this goal have been formed.
Goal Tree - Grouping
When building a tree of goals, it is necessary to initially follow a certain order of structuring or grouping goals to ensure the completeness and consistency of the tree of goals being created. You can use several grouping options, someone groups goals according to the PDCA cycle, someone groups them according to business processes, however, based on project experience, we can say with confidence that the following two options are the most convenient.
The first option involves grouping goals according to the perspectives of the balanced scorecard - BSC (finance, customers, processes, training and development) and is most often used for commercial companies. The second option is more often used in government agencies and large holdings and involves grouping goals into a tree in accordance with the organizational structure, for example, by deputy general directors, which facilitates the subsequent coordination of the tree of goals in the organization.
Defining the rules for grouping goals allows you to put things in order when creating a tree of goals, as well as to check the completeness of goal setting. As an example, when grouping by BSC perspectives, “gaps” can be found in terms of customer orientation, development of internal business processes, or in staff training and development. In fact, you can see that Russian business is sometimes guided by an anecdote - "In order for a cow to eat less and give more milk, it needs to be fed less and milked more."
To verify the constructed goal tree for completeness, you can additionally conduct a SWOT analysis of the company, which allows you to determine those goals that could be missed when setting goals, but in practice this is not always done.
Is SMART always possible?
If we talk about the rules for formalizing goals, then on the one hand, SMART technology was created specifically for this, but in practice it is not always possible to adhere to it 100 percent. It is not immediately possible to achieve measurable goals, for example, on the upper “floors” of the goal tree, for their measurement, many indicators may be required, and when the goal is initially formulated, it is simply impossible to immediately determine the list of indicators.
In terms of examples, the goal "Increase sales by 20% annually" is often sufficient for further discussion and detailing, while a goal formulated using SMART might look like this: "For the Commercial Director to increase sales by 20% annually, by entering the Chinese market, with new products in the field of online learning.
The generality of the wording in the goal tree will be replenished later, when the goals are detailed and when a model of the goal environment will be built, in which the following will be determined: indicators and their actual and planned values; algorithms for calculating indicators and sources of information collection, employees responsible for achieving the goals; projects aimed at achieving goals.
Indicators are used to assess progress in achieving the set goal, and they show how much we have moved in the implementation of the strategy, and which of the managers can be paid a bonus for this and who cannot. A large number of indicators for measuring the degree of achievement of goals often leads to the need for a serious refinement of the management accounting system and serious labor costs for collecting data, which is why a maximum of 2-3 indicators are tied to each goal, which are selected according to the Pareto principle, taking into account the possibility of their calculation based on the existing company's management accounting system.
The next step, after digitizing the goal with indicators and appointing a responsible employee, is the formation of projects aimed at achieving the goals themselves. At the same time, to achieve one goal, several projects can be formed, for which it is necessary to specify the deadlines for their implementation.
Thus, as a result, a tree of goals should be formalized, indicators with actual and planned values are “linked” to each goal, those responsible for achieving goals and indicators are appointed, and a project program is formed aimed at achieving the set goals, and, consequently, at achieving the strategy. It remains only to start implementing projects and introduce new indicators into the system of motivating responsible employees.
Is it worth building a balanced scorecard (BSC)
The next step in digitizing the strategy is to build a balanced scorecard (BSC) based on the Norton and Kaplan technology. BSC allows you to level the lack of a management system by goals and balance goals and indicators relative to each other.
For example, in the goal tree, there may be two conflicting goals: "Reduce the development time of a new product" and "Reduce the cost of developing a new product", the priorities between which will be determined manually when prioritizing between projects.
BSC allows you to prioritize projects through algorithms for balancing goals and indicators by prospects based on expert assessments, as well as by analyzing the correlation of the actual values of indicators. However, in practice, one can see the complexity of BSC algorithms, and although there are many positive examples of its construction in Russia, there are even more unsuccessful examples.
Therefore, it is necessary to analyze the maturity of management in a particular company in order to understand how it will be able to implement and use BSC technology, because very often it is enough to use a goal tree with indicators, projects and responsible people, without using BSC with its complex algorithms.
Goal Tree is a structured, built on hierarchical principle(distributed by levels, ranked) set of system goals, in which the general goal (“top of the tree”); subgoals of the first, second and subsequent levels subordinate to it (“tree branches”).
The term "tree" refers to the use hierarchical structure(from oldest to youngest), obtained by dividing the overall goal into subgoals. The principle of splitting the overall goal into subgoals and tasks is illustrated by the diagram shown in Figure 14 (p. 36).
The name "goal tree" is due to the fact that a schematically represented set of goals distributed over levels resembles an inverted tree in appearance. The concept of a "tree of goals" was first proposed Charles Churchman 8 and Russell Ackoff 9 in 1957 year. It allows a person to put their own plans in order, to see their goals in a group. Whether they are personal or professional. In particular, the goal tree allows you to identify, what possible combinations will provide the best return.
Figure 14. Breakdown of goals into subgoals and tasks: I-V - system levels; 1-39 - elements of the system.
Target tree method focused on obtaining a relatively stable structure of goals, problems, directions. This method is widely used for forecasting possible directions of development of science, engineering, technology, as well as for drawing up personal goals, professional goals of any company.
The goal tree closely links long-term goals and specific tasks at each level of the hierarchy. At the same time, the goal of the higher order corresponds to the top of the tree, and below, in several tiers, there are local goals (tasks), with the help of which the achievement of the goals of the upper level is ensured.
One of the basic principles of building a goal tree- each goal of a given level should be represented as subgoals of the next level in such a way that their totality completely defines the concept of the original goal. The exclusion of at least one subgoal deprives completeness or changes the very concept of the original goal.
Stages of building a goal tree:
1. Strategic goal formulation. This is the top of the tree, it can also be a global large and very complex goal, in contrast to the strategic one, in the possibility of its ultimate attainability. (example, strategic - increase in sales, global - increase in capital by a certain amount; strategic - personal growth, global - learn 5 foreign languages). This goal answers the questions: what do I (we, the organization) want to receive or receive after such and such a period? Who I want to be? What do we want to achieve or achieve? Answer - write to the top.
2. We write down the conditions, subgoals contributing to the implementation of the global strategic goal. Answering the questions: under what conditions is it possible to achieve the goal? What tasks or goals need to be solved in order to achieve goal number 1?
3. We split further than the goal, we do the same procedure as in the case in paragraph 2, but only in relation to 2nd row of targets. Our task is to build a consistent hierarchy until all the goals come down to the implementation of a specific small task, either done once, or in a constant cycle.
You need to crush goals sequentially. Those. they should be subordinate to each other, and there were no big jumps.
The smallest goals should be as simple as possible, the implementation of which realizes, just as simply, a higher goal.
When deploying a goal into a hierarchical structure of goals, it is assumed that the implementation of subgoals (tasks) of each subsequent level is a necessary and sufficient condition for achieving the goal of the previous level.
When formulating goals at various levels, it is necessary to describe the desired results, but not how to achieve them.
The subgoals of each level must be independent of each other and not outgoing from each other.
The foundation tree of objectives combines tasks, which are the formulation of work that is performed in a certain way and within a predetermined time frame.
The overall goal at the top of the graph should contain a description of the end result.
The number of levels of decomposition depends on the scale and complexity of the goals set, on the structure adopted in the organization.
Consider examples of the key goals of the enterprise.
The goal tree can be compiled for any goal: global, monthly, yearly.
An example of compiling a goal tree. The goal is to become a university student.
Resources: good education (specialized school, tutors), wealthy parents, etc.
The probability estimate is high: a gold medal, an uncle is a teacher at this university, etc.
1. Continue additional education and tutoring, get a job (save money), talk to a bank about a loan, etc.
2. Talk to your uncle for help, go to preparatory courses, etc.
Subgoals can give rise to smaller goals, and so on.
