Mission Statements, Corporate Objectives & Functional Objectives

Summary

In this video, Bizconsesh explores the layers of objectives within an organization, starting from the mission statement down to corporate and functional objectives. The mission statement serves as a qualitative declaration of a business's core intentions, like Amazon's aim to be the Earth's most customer-centric company. Corporate objectives, which are derived from the mission statement, are more quantitative and specific, often adhering to the SMART criteria (Specific, Measurable, Agreed, Realistic, and Time-bound). These corporate objectives, in turn, guide functional objectives specific to each department, ensuring coordination and alignment with the overarching mission.

Highlights

• Mission statements are broad, qualitative descriptions of a business's intent, such as Amazon's customer-centric focus. 🌍
• Corporate objectives, derived from mission statements, define specific, quantitative goals for overall business priorities like profit maximization. 📈
• Functional objectives focus on department-specific goals and detail how to achieve corporate objectives through SMART criteria. 💪

Key Takeaways

• Mission statements offer a broad, qualitative purpose, like Amazon's customer-centric focus. 🌍
• Corporate objectives convert mission statements into quantitative goals using the SMART criteria. 📊
• Functional objectives specify departmental goals aligned with corporate objectives. 🏢

Overview

Mission statements are the guiding light for a company, detailing its core intentions in a broad and qualitative manner. They're sometimes referred to by different names like values or vision, but their essence remains the same: to define the business's overarching goal. Amazon, for example, strives to be the Earth's most customer-centric company, which is a prime example of a mission statement in action.

Corporate objectives take the mission statement's broad purpose and frame it into specific and quantitative terms. These objectives focus on overall company goals such as maximizing profits or ensuring growth. They are crafted using the SMART criteria to be Specific, Measurable, Agreed upon, Realistic, and Time-bound, providing a structured pathway for achieving business success.

Finally, functional objectives are the action-oriented plans at the departmental level. These are the most detailed objectives and are directly tied to the corporate objectives. Each department, whether it's marketing, operations, or finance, aligns its goals within this structure, thereby contributing to the company’s mission and ensuring all parts of the business are working towards the same targets.

Chapters

• 00:00 - 00:30: Mission Statements The chapter discusses mission statements in a business context. It explains that a mission statement is a qualitative written description outlining what a business aims to achieve and is designed to help people understand its purpose. An example provided is Amazon's mission to be 'Earth's most customer-centric company.'
• 00:30 - 02:00: Corporate Objectives The chapter 'Corporate Objectives' discusses the interchangeable use of terms such as values, vision, mission, and purpose within corporate structures. The main focus is on mission statements, which provide a broad definition of a business's intent. An example given is a customer-centric company. The text also highlights that terms like corporate objectives are used interchangeably with mission statements, indicating flexibility in corporate language.
• 02:00 - 03:30: Functional Objectives The chapter titled 'Functional Objectives' focuses on the role of corporate objectives, often akin to business objectives, as fundamental elements supporting a broader mission statement. These objectives shape the overarching goals of a business, which can range from profit maximization and revenue growth to broader goals like business expansion or addressing initial survival in startups.
• 03:30 - 04:30: Importance of Hierarchy of Objectives The chapter discusses the significance of writing business or corporate objectives in a SMART way. This approach ensures that objectives are Specific, Measurable, Agreed upon by stakeholders, Realistic, and Time-bound. The focus is on setting objectives that are quantitative rather than qualitative, using numbers to clearly define goals. SMART objectives help align the interests of managers, shareholders, and employees, ensuring realistic goals are set with a clear timeframe for achievement.

Mission Statements, Corporate Objectives & Functional Objectives Transcription

• 00:00 - 00:30 let's assess on mission statements core projects and functional objectives we start with the top level the mission statement so the mission statement is essentially a qualitative a written description of what the business intends to do suspect hardest understand its intent now an example of a mission statement would be in the case on Amazon that it's Earth's most customer centric company more details in the Amazon business model click the card up there but anyway mission statements are
• 00:30 - 01:00 sometimes given other names and they're very much interchangeable they're fluid for example Ames Corps parades values vision mist mission vision call purpose there are other names are sometimes interchangeably used with mission statements but the key thing is mission Spelling's are a broad definition of what the business's intent is in the case that was in earthmister customer centric company now the layer below mission statements is the corporate objectives again interchangeably
• 01:00 - 01:30 sometimes called business objectives and core project is the first thing is they are driven by the mission statement say are there to support that big top-level mission statement which as I said before often very broad and qualitative now corporate objectives define the overall objectives of the business such as it could be profit maximization revenue maximization growth or just initial survival in a startup business and it's
• 01:30 - 02:00 very likely these corporate or business objectives will be written in a smart fashion and a smart fashion is just a style of writing and objective that indicates that the objective is specific in what the objective is trying to achieve it is measurable so it is not qualitative it is more quantitative you would use numbers and set goals through them it is agreed by stakeholders such as probably managers and shareholders and possibly employees it is realistic in what its goal is and the timeframe is
• 02:00 - 02:30 defined but also when we're talking about time frame sometimes with corporate objectives we are talking about the short to medium these in the longer term it might be that the word strategy is interchangeably used with business objectives and corporate objectives and when it is and which is tends to be the later units of your a level strategy is essentially long term objectives and how we can strategize for the future now corporate objectives will be driven by the mission statement but they will
• 02:30 - 03:00 drive the function objectives so the functional objectives are plugged into what the core project is are now the function objectives will be on a department level which is why sometimes function objective might be interchanged because departmental objectives they define the objectives of each department such as the marketing department the operations department the finance department that HR department key thing is they will be in more detail because they're going to be specific to that department more detail than you'd get at
• 03:00 - 03:30 a corporate level and the gain function objectives might again use smart fashion in order how to write those objectives as I said before they are driven by the corporate objective because they are the lowest level of these objectives the last thing to think about is why have I have this structure why have this hierarchy of objectives and a mission at the top well number one it does it helps measure success because success in a marketing department needs a function object if you can't define the success of a model department from the mission
• 03:30 - 04:00 statement it's too broad to generic the other things is that it allows coordination between managers and employees they correct this underpinning system that everyone can work with it because you've got the function objectives so employees there in the marketing department could look to fulfill their objectives within the marketing department which fits in with the bigger system of that corporate objective and clearly the end goal being the mission statement so it gives focus and direction to employees and managers in their specific role their
• 04:00 - 04:30 specialization to help the broader definition of the organization I hope that helps and I'll see you of a next [Music]