The systematic elaboration of the annual goals allows managers to turn the long-term goals and the main strategy into activities:
- Annual goals enable operational managers and members of staff to better understand their roles within the company
- If these goals are achieved with the participation of the managers responsible for their implementation, then they give an objective basis for the related conflicting political interests that may interfere with the effectiveness of the strategy
Effective annual goals become an essential link between strategic intent and operational reality. Well-set annual goals provide the basis for controlling the strategy.