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Business · Vision mission and objectives

Writing measurable objectives for a business

You write improve sales as an objective and lose the mark for not being measurable.

A measurable objective has four parts: what is measured, where it starts, where it should end and by when. If a stranger could check it on a calendar, it is measurable.

This lesson is part of vision, mission and objectives. If you are still unsure what makes a target different from a vision, revisit telling vision, mission and objectives apart first.

How do you build the four parts?

Write them in this order: what (cups sold per day), from (the current figure), to (the target), by when (the deadline). Then read it back and check it is also achievable: does the case say the business has the capacity?

Worked example: Teh Tarik Ceria

An invented bubble tea stall sells 40 cups a day. The owner wants to “sell more”. The case says the stall can make up to 60 cups a day with its present equipment.

Step 1: what. Cups sold per day.

Step 2: from and to. From 40 to 50 cups. The increase is 10 cups, and 10 ÷ 40 × 100 = 25%.

Step 3: by when. Six months.

Step 4: achievable check. 50 is below the 60-cup capacity, so no new equipment is needed.

The objective: “To raise daily sales from 40 to 50 cups, an increase of 25%, within six months.”

The value in RM helps too. At RM6 a cup, the stall’s daily sales rise from RM240 (40 × 6) to RM300 (50 × 6), which is RM60 more a day.

The mistake that costs marks

The common slip is a wish without a number.

Weak Why Repaired
“To improve sales.” No figure, no deadline “To raise daily sales from RM240 to RM300 within six months.”
“To get more customers soon.” “More” and “soon” cannot be checked “To serve 50 customers a day, up from 40, by June.”
“To make the best drinks.” A vision, not a target Use a measurable proxy, such as “a customer rating of 4.5 out of 5 by June.”

A target above the capacity given in the case also loses the achievable mark. If the stall could only make 60 cups, an objective of 100 cups would fail.

Check yourself

Invented case: Buku Kita, a bookshop with monthly sales of RM8 000. The owner wants sales to grow by 15% in four months. The shop’s largest recorded month was RM9 500.

Write the objective and check that it is achievable.

Answer

15% of RM8 000 is 0.15 × 8 000 = RM1 200, so the target is 8 000 + 1 200 = RM9 200 each month.

Objective: “To raise monthly sales from RM8 000 to RM9 200, an increase of 15%, within four months.”

Achievable check: RM9 200 is below the shop’s largest recorded month of RM9 500, so the target has been reached before and is realistic.

What to study next

An objective is only useful if you can tell whether it is being met. Continue with connecting objectives to performance measures, and use the business case-answer planner to draft objectives for cases of your own.

If you want a teacher to review your objectives on your practice cases, see online one-to-one Business tuition.

Common questions

What does SMART stand for in objectives?

Specific, Measurable, Achievable, Realistic and Time-bound. In practice, check that the objective names one thing, has a number, can be reached with the business's resources, and has a deadline. Textbooks may word the letters slightly differently.

Do I need a percentage, or is a number enough?

Either works if it can be checked. Use the form that suits the case: 'from 40 to 50 cups a day' is clear, and '25% more cups a day' says the same thing. Stating both is fine.

Can an objective be about something other than sales?

Yes. Objectives can be about profit, customer satisfaction, cost reduction, staff training and other areas. The test is the same: a figure and a deadline.

How big should the target be?

Big enough to matter, small enough to reach with what the case says the business has. Use case figures such as capacity, past sales or budget to justify that the target is achievable.

If your objectives keep coming back as vague, one-to-one Business lessons let a teacher rewrite your own wording until a stranger could check it, and explain each change.

  • Online one-to-one lessons for your child with an experienced teacher.
  • Your first class is a one-hour trial, from RM50. The fee is agreed before you book.
  • Happy with the teacher? Continue with lessons of about 1.5 hours. If not, ask for another teacher.