Importance of Setting Goals and Strategic Planning In an Organization


With the ever-increasing competition and changing business environments, proper planning and setting of achievable strategic goals have become an integral part of all organizations, as they are two of the primary determinants of an organization’s level of productivity.

In addition, these factors are also important when it comes to defining an organization’s purpose and business direction that meant to ensure that an organization improves its profit and expands its market segment.

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Although sometimes because of the ever-changing economic conditions it may be very hard to predict any changes that are likely to occur in the course of business, it is important for managers to be always prepared to challenge the status quo and put in place necessary systems to facilitate the delivery of desired outcomes.

On the other hand, it is crucial for managers to formulate plans and set goals that are not only executable, but also viable, as this is one of the primary ways of ensuring an organizations business operations are connected and aligned.

Therefore, in any organizational setting proper strategic planning and setting desirable goals are the two primary factors that determine a health care management organization level of goal attainment.

Importance of goal setting and strategic planning to productivity

Regardless of any prevailing business condition, every organization has the capacity to perform and achieve its strategic goals, so long as such an organization aligns its strategic goals with its activities.

Therefore goal setting should be one of the primary activities that an organization should do with uttermost care. Goal setting can help to define the parameters that an organization should put in place to achieve an end goal.

Without goals, it is very hard for a team to formulate other plans or to seek any financial aid, as this will be seen of lack of direction. Setting of goals can also act as a motivating factor towards achieving an end goal, because different have set targets, which they must achieve; hence, to avoid being defeated by other teams, they will always remain motivated towards achieving their goals.

Further, goals give teams something to look forward to, as goals are aims that must be achieved, regardless of the prevailing conditions and challenges. Most teams with set goals have a tendency to utilize their time productively; because they know any failure to achieve such goals will not only be a failure in their part, but also to an organization that they pledged to help achieve its mandate (Lawhorne, 2008, p.1).

In addition to setting of achievable goals, strategic planning is another important strategy of increasing the level and quality of work output. With the ever-increasing scarcity of resources and competition in most business scenarios, it is important for an organization to formulate appropriate strategic plans, as they are the first step in any goal setting endeavor aimed at increasing productivity.

Productivity improvement is a crucial part of strategic planning, as this one of the primary gateways to increased profits and meeting of scheduled targets.

Strategic planning is primarily concerned with an organization’s long term goals and the ability of an organization to utilize the available resources to maximize production. Therefore, strategic planning aids in the development of better managerial and working decisions that are coupled with increased energy and capacity to improve customer satisfaction.

Moreover, strategic planning will give an organization some competitive advantage over other organizations, as it provides an organization with better solutions to any emerging business and operational challenges (Lawlor, 2006, pp. 1-2 and Kerzner & Rea, 1997, pp. 264-265).


In conclusion, regardless of the prevailing economic condition, the level of productivity of any healthcare organization will primarily be determined by two primary factors in an organization; these are setting of appropriate goals and formulating appropriate strategic plans.

Through doing this, an organization is guaranteed to achieve its set targets, deal with emerging challenges, optimize resource allocation, and maximize its success chances.

Reference List

Kerzner, H. Rea, P. J. (1997). Strategic planning: a practical guide. New York: John Wiley and Sons. Retrieved March 25, 2011, from

Lawhorne, P. (2008). The importance of setting goals. Divine Caroline. Retrieved March 24, 2011, from

Lawlor, J. F. (2006). The importance of strategic planning. Retrieved March 24, 2011, from


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