Setting objectives.This checklist is designed for those managers who participate in setting corporate objectives and who then have to interpret and apply such objectives to their own functional or departmental operation, including setting objectives with and for the people under their responsibility. Definition An objective is an end towards which effort is directed and on which resources are focused. An objective should be specific (so that it is clear to those who are to work towards it), measurable (so that people will know when they have got there or not), and usually tackled within certain time and cost constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. . Setting corporate objectives means clarifying the strategic and policy requirements of the organisation and setting and agreeing complementary operational objectives in relation to them. It is an integrated process which links corporate planning to business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . As objectives are "rolled down" the organisation, they are usually made more specific. Every department, every team and every individual can and should have objectives. Much ink has been spilled over the differences between aims, objectives, goals and targets. There are no real differences except those of scale and time; some may be long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. and high-level, others short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. and low-level low-lev·el adj. 1. Relating to or being of low rank or importance: a low-level job. 2. Situated in or occurring at a low level: low-level radiation. 3. . The key is to use the terms that you--and the people you are dealing with--understand. Throughout this checklist we use the term objective. Requirements of objectives In order to have a chance of success, objectives need to:</p> <pre> identify a purpose and an area of responsibility such as improving performance or service be specific and measurable be achievable but challenging--within given time and resources be written down--for both clarification and referral be subjected to a process of discussion, compromise and agreement between those setting the objective and those who are to tackle it be agreed with the performer--this is not always possible but highly desirable because ownership leads to commitment. </pre> <p>Advantages of integrated objective-setting These include: * a better understanding of corporate planning at operational level * a clear sense of direction * a better understanding of accountability throughout the organisation * greater understanding in setting priorities * improved communication and motivation. Managing without objectives By failing to manage by objectives you risk: * not knowing where you are going * never knowing what you have achieved * not knowing whether what you are doing is in tune with longer-term plans or higher-level objectives * confusion and demoralisation Noun 1. demoralisation - a state of disorder and confusion; "his inconsistency resulted in the demoralization of his staff" demoralization confusion - disorder resulting from a failure to behave predictably; "the army retreated in confusion" 2. . Action Checklist 1. Develop and communicate the organisation's Mission/Vision statements People often confuse con·fuse v. con·fused, con·fus·ing, con·fus·es v.tr. 1. a. To cause to be unable to think with clarity or act with intelligence or understanding; throw off. b. a Mission with a Vision statement. It is quite possible--even desirable--to have objectives relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc both. The Mission statement lays down the purpose for which the organisation exists and provides the umbrella statement for the organisation's "standing" objectives. The Vision statement is the expression of an ultimate aim to which the organisation aspires and encapsulates the "change" objectives. For example: * Our purpose is to make top quality cars. (Mission) * Our aim is to become the largest-selling car manufacturer in the world by the year 2000. (Vision) Such statements should be clearly communicated to and reinforced with all personnel, not just senior management. Writing a mission statement is the subject of another checklist. 2. Identify corporate objectives from the Mission/Vision statement It is important to link corporate objectives to Mission and Vision statements. This is usually the purpose of the strategic plan and the function of senior management, although this process is being increasingly cascaded throughout the organisation in empowered organisations. The strategic plan is formulated for·mu·late tr.v. for·mu·lat·ed, for·mu·lat·ing, for·mu·lates 1. a. To state as or reduce to a formula. b. To express in systematic terms or concepts. c. by an assessment of: * what the organisation intends to accomplish and where it intends to be in terms of its market position vis-a-vis the competition * being in the right markets at the right time with the right product(s) and service(s) * ensuring a sustainable and profitable growth. Writing a strategic plan is the subject of another checklist. Much will depend on the values of the organisation; values may well be challenged and re-assessed when setting high-level objectives, and vice versa--the adoption of new objectives may well lead to a reappraisal of values. The organisation's values will influence how it tackles its objectives in terms of the importance it attaches to the environment, the welfare of its staff and job security, and its public image in general. For many organisations however, objective-setting still remains a largely top-down exercise. In such cases, objectives should be set out in a plan and communicated to all staff. 3. Agree the objectives for senior managers This is a process of splitting the corporate objectives by function, business unit, or by product or service. It will be necessary to rank the objectives in terms of priority, draw up time-frames for achieving them and identify the resources required to tackle them: this precedes the operational and financial (budgeting) planning of that function or business unit. 4. Cascade A connected series of devices or images. It often implies that the second and subsequent device takes over after the previous one is used up. For example, cascading tapes in a dual-tape backup system means the second tape is written after the first one is full. to departments and individuals Again, some organisations make this a two-way process so that communication on key decisions is bottom-up as well as top-down. Don't wait forever for top-down objectives; establish your own at departmental level which reflect the organisation's mission, and are in harmony with what your customers need and what your resources are geared to deliver. 5. Agree objectives with those who are to tackle them Setting objectives should not happen by dictat or decree decree, in law, decision of a suit in a court of equity. It is the counterpart in equity of the judgment in a court of law, although in those jurisdictions where law and equity have merged, judgment is sometimes used to include both. ; rather it should be by proposing and seeking ideas, by discussion, negotiation, compromise and agreement. That is an ideal situation; the minimum that both objective-setter and objective-performer should require from a one-to-one meeting is an answer to each of Kipling's six honest serving-men: who, what, where, when, why and how? 6. Identify appropriate performance measures Performance measures should allow progress against objectives to be measured. Performance measures (which can be employed on a team or individual basis) should indicate what is expected and how well people are doing towards their objectives. Performance measures should be clear, concise, easy to collect and interpret, and relevant in that they should provide information which tells you and your organisation how well you are performing. Measures are usually related to: * efficiency (how quickly you deliver) * effectiveness (how good/accurate/relevant was the service delivery for the customer) * cost-efficiency * cost-effectiveness cost-effectiveness pertaining to cost-effective. cost-effectiveness analysis a comparison of the relative cost-efficiencies of two or more ways of performing a task or achieving an objective. . They would usually cover information relating to: * finance--costs as well as income * customers--new and lost * markets--penetration thereof * resources--consumed, saved or required anew a·new adv. 1. Once more; again. 2. In a new and different way, form, or manner. [Middle English : a, of (from Old English of; see of) + new * processes--how efficiently and effectively, tasks and activities are accomplished. Performance measures should also be agreed between job holder and manager and should be reviewed regularly (especially if there are significant changes to the work content). They are of benefit to the organisation or the individual in terms of personal development. Managers may well need time to help staff understand and interpret objectives for their department or their part of the organisation, even to help them work out their own contribution to corporate objectives. Performance measures are the subject of a further checklist. 7. Set up procedures for reviewing performance This--with section 6 above--is the principal content of the performance appraisal Performance appraisal, also known as employee appraisal, is a method by which the performance of an employee is evaluated (generally in terms of quality, quantity, cost and time). . It is in the appraisal discussion that past performance is reviewed, learning opportunities are identified and new or revised objectives are set for the next period. Dos and don'ts in objective setting Do * Set priorities by ranking that which "must" be done and that which "we would like to have done". * Write objective statements which are SMART--Specific, Measurable, Action- oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. , Realistic, Time (and resource) constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. . Don't * Leave out those who are responsible for achieving the goal from the discussion and agreement process necessary to setting it. * Neglect to re-start the cycle by reviewing and revising objectives. Further reading Managing performance: performance management in action, Michael Armstrong Michael Armstrong is the name of:
Title of nobility, ranking in modern times immediately below a viscount or a count (in countries without viscounts). The wife of a baron is a baroness. Originally, in the early Middle Ages, the term designated a tenant of whatever rank who held a tenure of barony London: Chartered Institute of Personnel and Development The Chartered Institute of Personnel and Development (CIPD) is the leading professional body for those involved in the field of personnel, training and development. Membership of the CIPD is highly respected and widely accepted by employers as a requirement of practice. , 2005 Practice of making strategy: a step by step guide, Fran Ackermann, Colin Eden and Ian Brown
Ian George Brown , London: Sage, 2005 Corporate strategy, 3rd ed. Richard Lynch Harlow, Financial Times Prentice Hall Prentice Hall is a leading educational publisher. It is an imprint of Pearson Education, Inc., based in Upper Saddle River, New Jersey, USA. Prentice Hall publishes print and digital content for the 6-12 and higher education market. History In 1913, law professor Dr. , 2003 Contemporary strategy analysis: concepts techniques and applications, 4th ed. Robert M Grant Oxford: Blackwell Black·well , Elizabeth 1821-1910. British-born American physician who was the first woman to be awarded a medical doctorate in modern times (1849). Business, 2002 Successful performance management in a week, Phil Baguley, Institute of Management London: Hodder and Stoughton, 2001 Performance management review, Paul Suff London:, Industrial Relations industrial relations pl.n. Relations between the management of an industrial enterprise and its employees. industrial relations Noun, pl the relations between management and workers Services 2001 (IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. Management Review no 20, January 2001) Powering up performance management: an integrated approach to getting the best from your people Richard Hale and Peter Whitlam Aldershot: Gower, 2000 Thought starters * Are you clear on the "fit" between what you do and where the organisation is going? * Do your people have clear targets which are live issues in the work-place? * Are targets measured for performance against financial, customer and personal development indicators? |
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