This blog gives you an quick overview of hoshin kanri and why you should know this effective strategy deployment method.
Decoding Strategy: Vision, Aspiration, Mission, Objective, Goal, and Target Explained
In strategic planning, understanding and differentiating key terms is crucial. Let’s explore and distinguish these terms for a more precise strategic direction. Translating these key strategic terms into another language is one of the causes of confusion in strategic planning and execution. For example, English-Finnish translation:
- Objective = Tavoite
- Goal = Tavoite
- Target = Tavoite
The definitions of the key terms in English with examples:
Vision - The North Star
This is the ultimate picture of success for the organization: a clear and compelling idea of what it wants to achieve. It’s broad, inspirational, and forward-thinking.
Example: Tesla’s vision of “accelerating the world’s transition to sustainable energy” sets a broad, long-term direction.
Aspiration - The Ambition
Aspirations are the desires or ambitions of a company. They are often less specific than a vision and more about the ethos or spirit driving the organization.
Example: A company might aspire to be recognized as the most innovative player in its industry, which is more about a desired state or recognition rather than a specific end goal.
Difference Between Vision and Aspiration
The key difference is that a vision is a distinct endpoint or scenario, whereas an aspiration is a desired level of achievement or recognition.
Mission - The Purpose
A mission defines the fundamental purpose of an organization, describing why it exists and what it does.
Example: LinkedIn’s mission is “to connect the world’s professionals to make them more productive and successful,” indicating its operational focus.
Goal - The Aim
Goals are broad, long-term outcomes that are reasonable to achieve within a time frame and with available resources.
Example: A goal for a mobile app company could be to reach a leading market position by the end of 2027.
Objective - Measurable result
Objectives are specific, measurable steps that help achieve the strategic goals and vision.
Example: A company might have an objective to increase its market share by 15% within two years, providing a clear target for its teams.
Target - The Quantifiable End-Point
Targets are specific, quantifiable, and time-bound benchmarks that serve as checkpoints toward achieving goals and objectives.
Example: A sales team might have a target to sell 500 units of a new product each month.
Difference Between Objective and Goal
It’s common to see the terms ‘goal’ and ‘objective’ used interchangeably, but they serve different purposes. Goals are about the end results you wish to achieve, whereas objectives are about the actions and efforts needed to get there. The distinction is crucial – goals set the direction and motivation, while objectives define the practical steps to achieve these goals.
Understanding and effectively utilizing goals and objectives is fundamental in strategic business planning. They work together to ensure that your business knows where it’s going and understands the steps needed to get there.
The role of strategy deployment methods
Strategy deployment methods like Hoshin Kanri or OKR help organizations frame these terms. For example, Hoshin Kanri uses Vision (or North Star), long-term objectives, annual objectives, and targets to improve (or KPIs). Such framework, together with, e.g., the X matrix in the visualization of the strategies across the organization, improves the understanding of the terminology and communication.
Ensure that the terminology translates accordingly to different languages used in your organization.
Amplon uses the Hoshin Kanri principles to help you formulate and communicate your strategy easily.
More To Explore
Summary of 3 basic elements of hoshin kanri method that help you to implement your strategy.
In this blog you find an short evaluation of the three most used strategy deployment methods – Objectives and Key Results (OKR), Hoshin Kanri (HK), and Balanced Scorecard (BSC).
These 8 tips help you to identify most important issues to plan your strategy execution.