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Operational Objectives: What They Are and Why They’re Important


If your overall goal is to run a successful business, then it goes without saying that you cannot achieve each of your milestones all at one time. You can’t set a broad goal, such as generating more leads, and expect your whole organization to simply come up with a composite solution. That is because you can’t play business-wide objectives completely by ear. 

Each larger goal consists of many smaller goals that need to be met to add up to what you envision for the future. We call these smaller, easier-to-manage benchmarks “operational objectives,” and they are crucial to your company’s growth. 


How “Operational Objectives” Are Defined

Operational objectives, which are also sometimes referred to as “tactical objectives,” are your short-term milestones that, once achieved, bring your business closer to its long-term goals, often referred to as “strategic objectives.” They are one of the major types of business objectives entrepreneurs and business leaders need to understand to reach their business goals.

While the terms are closely related, they should never be confused, since a company is only ever able to hit its strategic objectives once its operational objectives have been realized. That is because strategic objectives are never particular enough to become daily tasks in their own right. 

Operational goals are usually set by middle management. Based on your organization’s aim, they can take between 6 months and a year to complete. They require clear instructions from management to guide daily operations and functions. This ensures consistent work towards long-term milestones which everyone can contribute to. 

The idea behind operational objectives is that they are both action-oriented, attainable, and immediate. Their completion gives a business a sense of accomplishment. It also provides them with a functional step closer to a larger goal. They can be broken down into a daily, weekly, or monthly schedule. This ensures that no critical steps are missed in anticipation of the bigger picture. 

When each of these steps is assigned to different teams and executed consecutively, larger goals seem easier to accomplish. As a result, they can be achieved much faster due to the added organization and planning involved.



How Operational Objectives Differ From Strategic Objectives

Strategic objectives are far more broad in scope. For example, you may decide to increase your sales revenue by starting a new marketing campaign. You wouldn’t, however, be able to do this immediately. Also, there are no bite-sized, easy-to-accomplish steps delineated for meeting such a goal. 

By definition, operational objectives are measurable benchmarks and specific targets that must be met by an organization as a part of its everyday operation. These goals are more focused on improving matters in the short term as part of the plan to achieve objectives that are much more large-scale. 

For example, let’s say you are running a small pizza restaurant in your hometown. You must co-exist with neighboring parlors by remaining competitive with them while still turning a sizable enough profit. To do this long-term, you must be sure that your everyday operations are efficient and cost-effective. 

If you set reasonable operational goals, such as raising quality control, streamlining the pizza production process, and eliminating excess waste, you will meet the overarching objective of keeping costs low while still producing high-quality, delicious pies. That means more money in your pocket while still attracting new customers who are sure to visit you time and again.

So, in contrast to strategic objectives, operational objectives are short-term and actionable in real-time. Their results blend seamlessly to deliver on the longer-term objectives that are put forth by any successful business. 



Organizing and Delegating Operational Objectives

Big-picture objectives are only really achievable when they are broken into concrete steps. It is just as important to arrange such actions in an organized sequence in order to best reach the larger goal at hand. These tasks should also be delegated to the correct team or employee for the job. These steps are just as important as recognizing each crucial milestone and defining it as an actionable goal. 

Some folks have used the acronym “SMART” to remember everything that an operational objective should encompass. That stands for “specific,” “measurable,” “attainable,” “realistic,” and “time-bound.” By using this metric, employees should be able to clearly understand their assignments without any ambiguity. 

They need to know when a task is due, how it should be done, and what is expected of them at every turn. Of course, these objectives must be tracked and monitored to measure how close you are getting to your end goal and which methods are working best.

Of equal importance is having a specified time frame in mind for a particular objective’s completion. This will not only increase productivity but also morale, as an easy-to-do task should not seem overwhelming or time-consuming in addition to the employees’ other duties.


The Different Types of Operational Objectives

There are many different types of operational objectives that a given company can set for itself. While this is not an exhaustive list, the following are some of the most common varieties:

1. Quality

These goals focus on the improvement of a business’s services or products. Some examples may be requesting customer reviews, conducting comprehensive inspections, and beefing up quality control practices.

2. Costs

These goals are made to reduce spending on all operational expenses, including production and distribution. Some examples include renegotiating deals with suppliers, increasing efficiency, and cutting back on needless waste.

3. Dependability

These are objectives aimed specifically at improving the reliability of an organization’s operations overall. This includes hiring someone to focus on equipment maintenance, keeping all positions filled, and installing backup systems in case of an emergency.

4. Speed

These milestones are instituted to maintain a company’s swiftness of response. By improving communication, betting on quicker technology, and reducing lead times, you can improve the responsiveness of your business dramatically.

5. Flexibility

These are goals that are put in place to keep up with the changing times and evolving circumstances. This may mean diversifying your products, planning revolving work schedules, or even training employees in different skills so they can fill in for co-workers when they are needed.


Operational objectives are the micro-goals that companies set in anticipation of a larger objective. By setting and meeting these goals, businesses can hit the larger benchmarks that are necessary for their further growth and success.

Also read:

Understanding the Difference Between Business Objectives vs Marketing Objectives

4 Main Types of Business Objectives Explained

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Donna Lee Hellmann
Team Writer: Donna Lee Hellmann is a New Orleans business, legal, technology, and digital marketing writer. She has over 15 years of experience writing content for various websites and companies. When she isn’t writing, she can be found with her nose in a book with her faithful cat, Bella, by her side.

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Team Writer: Donna Lee Hellmann is a New Orleans business, legal, technology, and digital marketing writer. She has over 15 years of experience writing content for various websites and companies. When she isn’t writing, she can be found with her nose in a book with her faithful cat, Bella, by her side.

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