Financial Strategic Objectives
Financial Strategic Objectives
Financial strategic objectives are typically written as financial goals. When selecting and creating your financial objectives, consider what you’re trying to accomplish financially within the time span of your strategic plan.
Here are some examples of Financial Strategic Objectives
The top goal of your organisation may be to increase the value of your organisation for your shareholders, stakeholders, or owners. Value can be defined in many ways, so this would need to be clearly defined.
This objective implies your organisation is trying to increase its earnings or profits. For publicly traded companies, a common way to look at this is through “earnings per share.” This can be measured quarterly and/or annually.
Revenue represents growth in your organisation, so increasing revenue is a sign of company health. You can make this more specific by defining revenue from a key area in your organisation.
On the other side of revenue is the costs or expenses in your business. As you grow (or shrink) you need to carefully manage cost—so this may be an important objective for you.
Maintain appropriate financial leverage:
Many organisations use debt— another word for financial leverage—as a key financial tool. There may be an optimal amount of debt you’d like to stay within.
Ensure favourable bond ratings:
For some organisations, bond ratings are a sign of healthy finances. This is a regularly occurring objective for a public-sector scorecard.
Balance the Budget:
A balanced budget reflects the discipline of good planning, budgeting, and management. It is also one that is typically seen in the public sector—or within divisions or departments of other organisations.
Ensure Financial Sustainability:
If your organisation is in growth mode or has an uncertain economic environment, you need to be sure you remain financially stable. Sometimes this means seeking outside sources of revenue or managing costs that are appropriate to your operations.
This is a solid top-level objective that shows balance between revenue and expenses. If your organisation is investing in order to grow, you may look to an objective like this to govern how much you are able to invest.
Diversify and grow revenue streams:
Some organisations receive revenue from multiple sources or products and services. They set an objective to grow revenue in different areas to ensure that the organisation is stable and not subject to risk associated with only one revenue stream.
KPI Examples – 84 (21st Century) Key Performance Indicators For Your Business
A KPI is a measurable value used by organisation’s as a way to keep track of and determine progress on a specific business objective. KPIs allow organisations to evaluate how well they’re performing on business objectives, and if current behaviours should be continued or if a change of strategies is needed. This handout provides 84 KPI examples for your business, we also include a brief description of why you may want to use each. We suggest you pick at least 2 KPIs for each of your key business objectives.
The best KPIs for your organisation starts with defining your business objectives and then designing KPIs that measure them.
This list is perfect for those who have already defined their business objectives and are looking for some inspiration around ways to measure these objectives.