Strategic goals

Definition

Strategic goals are long-term objectives that an organization aims to achieve, guiding its overall direction and decision-making. These goals help in shaping policies, allocating resources, and setting benchmarks for success.

5 Must Know Facts For Your Next Test

1. Strategic goals are typically established by top management and require a long-term perspective.
2. They provide a framework for aligning departmental objectives with the company's overall vision.
3. In decentralized management, strategic goals ensure that all units work towards common organizational objectives despite their autonomy.
4. These goals are often broken down into specific, measurable targets to facilitate tracking and accountability.
5. Strategic goals influence decision-making processes at all levels of the organization.

Review Questions

• What is the primary purpose of establishing strategic goals within an organization?
• How do strategic goals differ in importance between centralized and decentralized management structures?
• Why is it crucial for strategic goals to be measurable and trackable?

Related terms

tacticalGoals: Goals that focus on short-term achievements and operational activities within departments or units.

decentralizedManagement: A management structure where decision-making authority is distributed among various levels rather than being concentrated at the top.

responsibilityAccounting: An accounting system that tracks financial performance based on individual managers' areas of responsibility.