As it has been famously said by management guru Peter Drucker: "What gets measured gets managed";
How do you figure out what you need to measure and manage?
How do you decide what KPI's you want to track?
What you need to track largely depends on where you are trying to go.
That's why doing the strategic planning process in its entirety is so important.
You can create endless examples of strategic goals, but if they don't align with where you're going or with your strategic priorities then you're going to be a wasting your time, energy and resources.
Here is a non exhaustive list of strategic goal examples and KPI examples.
If you use the Balanced Score Card in your organization, (you should) then below you'll find sample "objectives" or strategic priorities. (depending on the language you use in your organization.
For each objective or strategic goal you must have an accompanying measurement.
A rule of thumb for measurement is going from X (current state) to Y (desired future state) by date (have a deadline for achieving your strategic goal).
For example, one of your strategic priorities is to "Enter new markets"
Then you can use these different sample strategic goals to measure your progress; Such as:
- Enter X, Y, Z markets by date.
- 20 total regional markets by date.
- 20% market share in each new market by date.
They all technically fall under "Enter new markets", but they all have different measurements that will affect how you chose to implement your strategy.
You can sort the priorities themselves under which ever category makes sense to you. What matters is that you measure the progress and set targets.
Examples of strategic goals for finance:
- Create and launch new product(s)
- Increase customer conversion
- Become market leader
- Sales: Company’s sales growth/Market sales Growth -> must be >1
- Customer satisfaction:
- Gain market position
- Explore new customer segments
- Increase revenues
- Attract investment
- Return on Assets
- Shareholders dividend
- Diversified revenue streams
- Number of products in portfolio (BCG matrix)
Examples of strategic goals for learning and growth
- Improve internal communications
- Number of Online and in person team updates
- Number of Reporting tools
- Number of internal newsletter a week
- Communication skills training programs
- Surveying your teams (monthly survey?)
- Build on momentum
- Implement performance review and reward system
- Build culture and align across organization
- Open new locations
- Number of locations per city/region/country
- Going international
- Percentage of sales abroad/local
- Number of exported products
- Create and implement training program
- Decrease employee turnover
- Improve employee satisfaction (Employee Engagement)
- Employee Net Promoter Score : eNPS = (promoters-detractors)/total respondents
- Balance employee utilization rate
- Improve training programs
Examples of strategic goals for customers
- Improve customer satisfaction
- Decrease the number of product returns
- Increase net promoter score
- % of defaults on products
- Response time to complaints
- Number of followers/like on social media
- Number of returning customers
- Improve our service approach for new and existing customers.
- Strategic partnerships
- Create impact measurement
- Customer Delivery time
- Increase in new customers
Examples of strategic goals for business processes
- Increase web traffic
- Number of publications
- Number of back links
- Vendor performance
- Restructure organization
- Implement software project
- Grow through acquisition
- Increase value of projects and manage growth
- Lower production costs
- Build capacity for the future
- Decrease defects
- Improve supplier relationships
- Increase team size
- Find new volunteers
- Launch and complete special projects
- Per unit costs
- Per unit yield
- R&D development time
- Improve resource allocation
- Reduce financial waste
- Some examples of how to measure the progress in these strategic priorities:
- Increase revenue per transaction: from X to Y by DATE
- Increase total revenue per customer : from X to Y by DATE
- Increase frequency of transactions: from X to Y by DATE
- Improve daily production from X to Y by DATE
- Enter X, Y, Z markets by Date
- 20 total regional markets by date.
- 20% market share in each new market.
- Acquire 2 companies with at least 5 million dollars in revenue by date.
- Reduce accounts receivable from 60 to 45 days within 6 months.
- Reduce customer wait times from 10 minutes to 5 minutes within 12 months.
- Increase the number of prospects in the pipeline from 100 to 200 in 6 weeks.
And so on...
Those are just a few strategic goal examples that you can use when outlining your strategic priorities and building your strategic plan.
If you want a template and walk through on how to map our your strategic priorities you can purchase our Strategic Map Template.
If you would like more information getting a facilitator to work with you and your team to help create the best KPI's and strategic priorities for your team, contact us for a consultation.