The success of an organization depends on good planning. The maximum profit and high profitability in the long term is always the general goal. What is the role of the goal tree in planning?
What is objective tree
Management goals are presented in a large number and variety, therefore, each enterprise needs an integrated, systematic approach to the selection of their composition. Process goal setting called goal setting.
The organization tree of goals (the objective tree) is:
- structured list, chart of organizational goals;
- hierarchy of multilevel goals;
- a model that allows you to streamline and combine goals into a single complex.
The product of the application of this method of strategic planning should be a logical and simple scheme of enterprise management. The goal tree provides an opportunity to justify the general goal and makes subgoals more achievable.
The system of goals is determined by the organizational structure. A huge structure, a large number of departments and work lines will require the development of a complex "branching" tree with many decomposition levels.
Vertex
The tree is populated from top to bottom, from central goals to secondary tasks. At the "peak" ("root") is the general goal, the achievement of which is a difficult task. So, it is necessary to decompose it into smaller elements, “goal-branches”, that is, to carry out decomposition. So there is a plan of movement towards the main goal.
All subsequent levels are formed in such a way as to facilitate the achievement of the previous one.
| purpose | Content |
| Economic | Maximizing profits from sales of products or services in the required quality and volume |
| Scientific and technical | Maintaining products and services at a given scientific and technical level, R&D, labor productivity increase through the introduction of know-how |
| Production | Implementation of the production plan. Maintaining rhythm and quality of production |
| Social | Perfection, development and replenishment of a personnel resource |
Branches and leaves
Branches - subgoals, extending from the top, are again decomposed. Branch Shoots represent the next level of goals. The process is repeated at each level until the goals are simplified. Simplicity is reachability, comprehensibility and logic.
All “branches” describe the result, which expresses a specific indicator. The goals of one parallel are independent of each other.
The enterprise’s goal tree is created based on 3 important elements of any goal.
| 1. Goal expression | 2. The scale | 3. Duration (working hours) |
| What does the result look like? What remains to be done? | What volume should I strive for? | By what time is it necessary to achieve the planned goal? |
Leaves are specific activities to achieve a goal. The characteristics and indicators indicated on the "leaves" contribute to the selection of the best option:
- period of execution;
- the probability of achieving the target by the planned date;
- cost indicators;
- amount of expendable resources.
Elements of a tree in one group are connected with each other through a logical “AND” (denoted by “∧”). Alternative groups interact via “OR” (“∨”).
Organization goals tree. Example
Consider a simple outline of goals to maximize profits with increased results and lower costs.
To approach the general goal (high profitability and maximum profit), three directions have to be worked out. Enter the received options in the organization’s goals tree An example is presented in table form.
| 1. High performance | 2.Cost reduction | 3. Company development |
| Achievement of each item depends on the solution of tasks | ||
| 1.1. Increase product sales
1.2. Build high-margin products 1.3. Optimize assortment 1.4. Increase the proportion of high quality products |
2.1. Improve Resource Efficiency | 3.1. Increase the volume and effectiveness of capital investments
3.2. Increase investment in innovation |
Apple Strategy and Goals
Why is Apple a winning strategy?
The company's field of activity is information and radically new products for working with it. The priority is the process of creating content and its consumption.
For example, Apple drew attention to cultural aspects. The music consumption model has been improved. With iPod, listening to music on digital media and finding on the Internet has become more convenient.
The line of iPod, iPhone and iPad corrects the disadvantages, improves the basic methods for creating and using information. This model, used for laptops, desktop computers, television, will allow the "apple" corporation to further increase revenue.
The result of the decade was three universal inventions and business platforms. They are not an end in themselves, but a means to achieve the goal: gaining access to the main methods of information consumption.
Naturally, Apple’s general strategy is to develop an existing product line.
Building a tree of organization goals using Apple as an example
The main goal of any business is the expansion of market borders, the conquest of an infinite number of customers. Apple is no exception and prioritizes the improvement of its line in the interests of the consumer.
Consider the company's goal tree for a product such as the iPhone, whose value reflects the motto “Simple. Conveniently. Aesthetically pleasing. ” As the main goal of the tree, we define the improvement of the iPhone, taking into account the interests of potential users.
The main competitive and significant for the consumer factors of this market are:
- product cost;
- variety of functions and energy-consuming battery;
- brand popularity;
- technology for connoisseurs;
- design and size;
- assortment (was abolished by Apple).
The goal tree will help answer the question: "What to do?" For example, to reduce cost, the interface has to be simplified.
What industry factors need to be created? What properties to improve? This is the amount of memory, design, games and entertainment. What to focus on: the functional component or the emotional?
Table with iPhone sub-goals in three levels
Apple's goal tree is presented in a simplified form in the form of a table.
| Improving iPhone Consumer Friendly | |||
| First level goals | |||
| 1. To eliminate the range and popularity of the brand | 2. Simplify the interface | 3. Increasing consumer appeal | 4. Improving ergonomics |
| Second level goals | |||
| 2.1. Simplify manufacturability | 3.1. Creation of a new design | 4.1. Special owner status | |
| 3.2. Memory expansion | 4.2. Last Mile Solution | ||
| 3.3. Strengthening the entertainment aspect | 4.3. Reduce size | ||
To solve the "last mile" the following tasks were allocated:
- Use touch screen and achieve the absence of buttons.
- Create advanced options.
- Enlarge the screen.
The next step is to fill out the “leaves” or activities to achieve the subgoals. For this, specific deadlines for completing tasks, the required volume, resources, cost and significant quantitative indicators are necessarily indicated.
The last step is to represent the tree-shaped targets with branches.
Task tree. Example
Tasks are called subgoals. They do not need decomposition and goal-to-means linkages. The goal tree includes higher and lower level goals.
Tasks are the basis for creating a program to achieve a separate grassroots goal. The solution to a problem is a combination of actions.
The goal tree, as an option, may contain the following tasks.
| 1. The plan of income and expenses of the social sphere | 2. Preparation of an overhaul plan |
| 1.1. Cost Estimation | 2.1. Creating a list of objects |
| 1.2. Summary estimate | 2.3. Plan of materials and devices to be purchased |
| 1.3. Calculation of standards | 2.4. Development of the structure of the fund to be repaired |
| 2.5. Preparation of cost estimates |
Thus, the goal tree becomes an organizing tool for creating a company development program. The examples confirm the principle of its formation “completeness of reduction”: goals are “crushed” into subgoals until the original goal becomes clear and achievable.
