Everyone on your team should understand the difference between a goal and an objective. I know it sounds simple, but terminology confusion is one of the biggest causes of misalignment in business strategy.
Whether you use the OKR model, The KPI framework, that Golden circleor another methodology, the difference between goals and objectives must be made clear. Without this shared knowledge, teams could, at best, waste time on irrelevant activities or, at worst, work against a common goal.
In this post, I explain the difference between goals and objectives and discuss some of the most effective goal setting frameworks marketers use today.
I will also discuss measurement tactics to track your progress. By the end of this post, you can say goodbye to ambiguity when it comes to your long-term and short-term marketing plans.
Table of contents
Goals vs. Goals
A goal is an achievable result that is typically far-reaching and long-term. A company might use goals to set annual strategies that each department will implement. A goal, on the other hand, defines the specific, measurable actions that each team member must take to achieve the overall goal. In summary, the main difference between a goal and a goal is that goals provide a direction while goals measure how you should follow that direction.
Goals are undoubtedly crucial to the success of your business. Ultimately, your company’s goals should align with your vision and mission so that employees can best control their own actions and decisions.
For example, let’s say your leadership team has set four broad goals for your company this year:
- Create a more inclusive workplace culture.
- Increase international brand awareness.
- Increase customer retention by 40%.
- Help employees achieve one professional goal.
Great…now what?
This is where goals come into play – Goals are essentially the measurable actions you can take to achieve your overall goals.
Pro tip: I suggest using the popular SMART criteria. This helps set effective goals by ensuring they are specific, measurable, achievable, relevant and time-bound.
Recommended Resource: Free SMART goal template
Download this template for free
“Creating a more inclusive workplace culture” is an admirable and important goal, but it is vague and too broad to measure. Does “more inclusive” mean a panel discussion on diversity and inclusion or does it mean a 10 percent increase in women in leadership positions?
Ultimately, your goals help your employees understand exactly what you expect from them.
In another example, let’s say you tell your marketing department that your overall goal is to “increase international brand awareness.”
Now, when your social media marketing manager creates her quarterly video campaign, she thinks to herself: “Hmm, how can I increase international brand awareness?”
She can adapt her goals to the company’s goals as well as her personal vision. Maybe she decides, “To demonstrate my success in increasing international brand awareness, my goals for my video marketing campaign will be:
- 10% of all form submissions come from outside the US
- A 5% increase in engagement from Spanish-speaking Facebook fans.”
Your social media marketing manager can then use her individual goals to measure whether or not she is contributing to the overall company goal of increasing international brand awareness.
As you can see, goals can be tailored to the needs of each department and allow for a high level of autonomy.
By setting clear and firm company goals, you can be sure that your employees are all working in the same direction but taking very different steps (e.g. goals) to reach the same finish line in the end.
There is another distinction between terms: goals versus strategy.
Strategy vs. goal
A goal is a measurable, specific action that an employee or team must take to meet the needs of a larger organizational goal. A strategy, on the other hand, defines how each employee or team will achieve the goal. A strategy can change over the course of a campaign, while a goal should remain the same. For example, perhaps your goal is to increase website traffic by 10%. A strategy to ensure success could be to focus heavily on SEO efforts, redesign the website, or put more money into your paid advertising approach.
Using our example above, let’s say your social media marketing manager decides that one of her goals will be to “increase Spanish-speaking Facebook fan engagement by 5%.”
This is in line with your company’s goal of increasing international brand awareness.
A strategy tells your employee or team how to achieve their goals. For example, your social media marketing manager might decide to focus her paid efforts on Spanish-speaking countries, leveraging Facebook’s location targeting features.
Alternatively, it may choose to cultivate partnerships with international companies and post videos in Spanish on Facebook specifically highlighting the work of these international organizations.
Both options are examples of strategies.
Your strategy could change over time. She might decide that her paid efforts aren’t working and try something else.
Ultimately, however, their goal (increase engagement from Spanish-speaking Facebook fans by 5%) should remain the same.
Types of goals and goals
Through my experience as a content marketer, I have learned that there is no one-size-fits-all approach to communicating goals and objectives.
There are many things that companies want to measure, especially from a marketing perspective. Therefore, it is important to have several species to choose from when setting the course for the coming year.
Types of goals
Time-based goals
The first type of goal that companies use to set strategic direction is the time-based goal. This goal type provides a general explanation of what teams or individuals should strive for within a specific time frame.
Time-based goals can be short-term or long-term depending on your organization’s needs. They help teams and individuals plan and execute urgent tasks.
Some goals are time sensitive and the most important outcome of achieving these types of goals is that they are completed on time. Depending on an organization’s needs, one can track these goals in various ways, such as using note-taking software and visualize them using visualization tools Timeline maker software.
Example of a time-based goal: “Increase sales by 10% to qualify for the Best in Class awards ceremony in August.”
Since the award ceremony has a fixed date and the action specified in the goal is a requirement of the ceremony, this goal should be timed to increase the likelihood of its achievement.
Suitable for: I would recommend this goal type for time-sensitive situations where there is an end date by which the goal must be achieved (this could be three months from now or ten years from now). A time-based goal helps keep stakeholders accountable and on track.
Results-oriented goals
Results-oriented goals are independent of a specific time frame and typically describe what the company wants to achieve at some point in the future. Outcome-oriented goals provide more context about when that goal should be achieved and how to measure the success of the goal.
During major changes, leadership transitions, and other important business milestones, outcome-oriented goals are used to communicate a new vision and era within a company.
Goals for this type of goal communicate actionable changes for employees and therefore fit well with process-oriented goals, which we’ll talk about next.
Example of a result-oriented goal: “Reduce average customer acquisition cost (CAC) from $29 to $22.”
Suitable for: I would recommend this goal type for scenarios where achieving a specific result really matters. It fits goals that emphasize success and allows flexibility in the methods (and sometimes time) required to achieve the desired result.
Process-oriented goals
If a company wants to set the direction for new workflows, a process-oriented goal is the best choice. A process-oriented goal does not explain what result will be achieved. Instead, this goal type is prescriptive and explains what the team is responsible for to achieve an outcome.
In addition, there are also process-oriented goals that can provide employees with the tactical orientation they need for their daily work.
Process-oriented goals can be short-term or even temporary, because once they are achieved, the new and improved processes can be put into action on a regular basis.
Example of a process-oriented goal: “Introduce a department-wide “Your Voice, Your Impact” suggestion portal and encourage employees to suggest operational micro-improvements that can be implemented in less than a month. The best idea in each department receives a reward every quarter.”
Suitable for: I would recommend this target type when implementing novel processes or workflows or during transition phases when change management is underway within a company.
Types of goals
Strategic goals
These are overarching goals with a longer perspective that provide a company with guidance to achieve an overarching goal.
Strategic goals are sometimes confused with goals because both have a long-term perspective. A key difference, however, is that strategic goals transform a goal from “a vague goal we want to achieve” into something more tangible. Think of it as a two-tiered pyramid with a goal at the top and strategic objectives at the bottom.
Example of a strategic goal: To strengthen an organization’s social engagement within the local community, a strategic goal might be to “build 70 affordable housing units in disadvantaged neighborhoods over the next three years.”
Suitable for: I would recommend this goal type to give shape to a goal.
Operational goals
Operational goals turn a larger goal into small, actionable steps that can typically be checked off daily, weekly, or monthly. You can think of them as the nuts and bolts of a machine, keeping each part running smoothly to achieve the overall goal.
The SMART framework mentioned earlier in the article is a handy acronym for developing good operational goals.
Example of an operational goal: To increase a museum’s YouTube channel subscribers by 35% in a year, an operational goal might be to “publish two new videos every week.”
Suitable for: I would recommend this goal type for situations where short-term activities or SOPs need to be outlined. This ensures that everyone involved is in agreement about the short-term work that needs to be completed, by when, and by whom, to achieve the overall goal.
Financial goals
The importance of finances to an organization cannot be underestimated. It’s like a breeze for a kite, keeping the company aloft.
Financial goals are money-related goals that an organization defines to consolidate its financial well-being.
These objectives can cover areas such as sales, profitability, cash flow, investments, liquidity, costs, debt and risk management, return on investment (ROI), taxes, stocks and dividends, sales, accounting and budgeting.
Example of a financial goal: As a goal to increase a company’s credit score, a financial goal might be to “increase quarterly loan payments by $50,000 to pay off debts more quickly.”
Suitable for: I would recommend this goal type when a company needs to set financial-related goals.
How to measure goals
Measurement is a key component of any SMART goal, but how exactly do you measure one? I have you. There are several ways to determine whether your actions have resulted in the desired outcome of your goals. Let’s take a look at them below.
1. Ask a closed question.
First, the easiest way to measure a goal is to ask whether or not you achieved it. If your goal is clearly stated, it should be pretty easy. Process-oriented goals are easiest to measure this way because they usually involve yes or no answers.
Example: If my goal was to have a quarterly coordination meeting between my department and another, I would answer either:
- “Yes, the two teams had a quarterly coordination meeting.”
- “No, the quarterly voting meeting did not take place.”
For goals that aren’t met, I make sure to write down the reason why so that I can revisit the goal at the next planning session and determine whether it’s worth trying again in the future.
2. Use a point system.
Multifaceted goals can be difficult to measure, but if you have a guideline to follow when writing the goal, you can use the same guideline to measure it.
Example: If my goal was to launch a new website by the third quarter, I would break that goal into two measurable parts:
If the team launches the site on time, the goal can be measured by receiving two points – one for the action and one for completing the action on time. If the website was launched late, the goal can be measured by giving it only one point for completing the action and no point for the deadline.
Pro tip: The points system should be specific to your company and should align with a larger measurement system related to performance or sales. Don’t forget to communicate the scoring system before you start planning goals so everyone knows how the goals will be measured.
3. Follow a section.
Qualitative goals and objectives without strict deadlines are difficult to measure because there are fewer numbers involved. In this case, a rubric system can be useful for measuring these types of goals. A rubric provides an opportunity to evaluate the context surrounding the goal and customize the way it is measured.
Example: Imagine a team working toward a process-oriented goal that unfortunately doesn’t make the process any easier. Instead, the team reported longer workflows and more bottlenecks than before. In this case, a rubric can help determine what you expected the outcome of that goal to be and document what actually happened to report that goal as unsuccessful.
How to measure goals
Because goals are more specific than goals, they are easier to measure. To measure goals, you can use any of the following concepts.
1. Measure success.
Most goals contain quantitative data such as units, numbers and numbers. This means you can measure the progress you have made towards the expected outcome.
Example: Let’s say your team wanted to generate 500 leads with a marketing campaign and achieved 475. The original goal of 500 leads was 95% achieved.
(475/500*100) = 95% target achievement
As with any measurement, your company can determine what constitutes subpar, average, and exceptional performance, which may vary by team or department.
2. Measure qualitative data with surveys.
For goals that aim to change behavior or are otherwise influenced by people, quantitative measurements may not give the full picture of whether or not you achieved your goal. Surveys, focus groups, and other behavioral measures can provide the data you need to measure success.
Example: In HR functions, the team may want to improve employee satisfaction within the sales team. There is no single quantitative metric that can measure this goal. Surveys like that eNPS can be a good way to measure a cultural change that leads to changes in the company culture.
3. Measure past performance compared to current performance.
There are certain goals that provide valuable insights but are difficult to measure. What is the solution? Get creative and define your own metrics that allow you to compare past performance with current results.
Example: Let’s consider brand awareness. Can you name a company that doesn’t want to improve? Me neither. This is one of the most common goals for marketing teams to measure, but also one of the most difficult to calculate.
Everyone understands it differently. So how do you know for sure if you’re measuring it correctly? How do you know if someone knows your brand now versus a month ago without asking every single person in your audience?
One way to measure this is to compare how many direct searches or branded search terms you get now compared to a time in the past. Sure, it’s not perfect, but it’s constant – meaning you have a fixed number to compare against.
As long as your stakeholders agree on which metrics and numbers to compare, you’ll find that measuring these types of goals isn’t all that difficult.
Pro tip: I would pay attention to biases that can arise when measuring goals—selection bias, survey bias, and confirmation bias, among others. This can distort the results and give a completely different picture than the reality on the ground.
Examples of goals and objectives
Scenario 1: A milestone goal
Goal: Open a new headquarters in Phoenix, AZ by the fourth quarter.
Lens: Obtain all license and permit documents by the second quarter.
To open a new headquarters, you need to do a lot of planning before the fourth quarter to achieve the goal. Goals help you stay on track so every step along the way is accounted for.
How to measure a milestone goal
To measure the goal and objective in this example, I would use either the Closed Questions frame or the Points frame.
Have you opened the new headquarters? If yes, you have achieved the goal according to the “closed question” measurement. Did you open the new headquarters on time? If not, give yourself one point for completing the activity and zero points for late completion.
By the end of the fourth quarter, all goals will build on each other to achieve the overall goal of opening the new headquarters.
Scenario 2: A growth target
Goal: Increase the company’s market share by 10%.
Lens: Grow your customer base by 22% per month over the next 12 months.
We see that goal and goal are interdependent and one way to gain market share is to acquire new customers.
How to measure a growth goal
Since this goal is very challenging and somewhat vague, you can try measuring it yourself using the Closed Questions framework. However, I would advise you not to do this – here’s why.
A goal like this can be influenced by several other factors not listed in your goals. These factors may even be beyond your company’s control.
When Popeye’s launched its chicken sandwich campaign, the company didn’t expect this Gain market share in the chicken sandwich category so quickly. Due to factors beyond its control, the company achieved its goal, but this success likely had little to do with the goals the company originally set to achieve that goal.
While it’s not a bad thing that the company achieved its goal, it is important that your goals explain why that goal was achieved.
In this example, measuring the goal against the Goal Achievement Framework not only gives your stakeholders an idea of how well you achieved the goal based on the activities under your control, but it also highlights any factors that impacted your goal , but were not considered as goals.
This will inform your team what to include in the next goal planning session.
Scenario 3: A quantitative goal
Goal: Reduce donut costs by 18% over the next five years.
Lens: Switch to a cheaper sugar supplier in the next six months.
The goal in this example is outcome-oriented and time-based, while the goal is process-oriented. The goal and the objective are closely related, but must be evaluated differently to measure success.
How to measure a quantitative goal
Use the Goal Achievement Framework to measure the goal and the past/present metrics for the goal. Since each goal focuses on reducing the cost of materials that make up the product mentioned in the goal, the closer you get to the goal.
Therefore, you should make sure that in this case you compare the new provider’s sugar price with the previous provider’s price. After five years, measure 18% goal achievement to determine whether you have met or exceeded the goal.
Set effective goals and objectives for your team this quarter.
Goals and objectives are often used interchangeably, but they serve different purposes in business. Describing your organization’s direction and progress in the same language keeps everyone on the same page and working toward the same outcome.
Although these two terms have specific definitions, I’ve learned not to get too caught up in the semantics – remember that the most important part of goal setting is doing the work and showing results.
If you’re not sure where to start, you’ve come to the right place. Download the free marketing goal setting template below to get your team moving in the right direction.
Editor’s Note: This post was originally published in April 2019 and has been updated for completeness.