Annual objectives are the objectives made for a year. Annual objectives are the short term milestones should be achieved in order to meet long term objectives. Similar to long term objectives, annual objectives should be SMART; Specific, Measurable,Attainable,Realistic and Timely.
Annual objectives should be established at following levels of an organization:
1. Corporate level (For example, GE is a corporation)
2. Divisional level (For example, GE’s divisions include GE Capital, GE Energy, GE Technology Infrastructure, and GE Home & Business Solutions)
3. Functional level (For example, GE functional areas could be Finance, Marketing, Management, HR, Manufacturing, Supply Chain, Technology and etc)
A list of annual objectives is required for achieving long-term objective. Annual objectives plays critical role in strategy implementation on the other hand long-term objectives are important in strategy formulation.
Example of Annual Objectives
XYZ corporation has an annual objective to increase market share by 10%, revenues and profits by 20%.