The major outcome of
strategic road-mapping and
after gathering all necessary information, is the setting of goals for the
organization based on its
A goal is a long-range aim for a specific period. It
must be specific and realistic. Long-range goals set through strategic
planning are translated into activities that will ensure reaching the goal
through operational planning.
To Win: 3 Strategies
An objective is a specific step, a
milestone, which enables you to accomplish a goal. Setting objectives
involves a continuous process of research and
decision-making. Knowledge of
yourself and your unit is a vital starting point in setting objectives.
Basic Business Growth Strategies
Strategic planning takes place at
the highest levels; other managers are involved with operational planning.
The first step in operational
planning is defining objectives – the result expected by the end of the
budget (or other designated) cycle.
Jack Welch's 5 Strategic Questions
Setting right objectives is critical for
performance management. Such objectives
as higher profits, shareholder value,
may be admirable, but they don't tell managers what to do. "They fail to
specify priorities and focus. Such objectives don't map the journey ahead -
the discovery of better value and solutions for the customer."6
3 Strategies of Market Leaders
The objectives must be:
In Management by Objective (MBO)
systems, objectives are written down for each level of the organization, and
individuals are given specific aims and targets.
Managers need to identify and set
objectives both for themselves, their units, and their organizations. Ensure
that you set the right objectives if you want to
the right results...
analysis to compare actual results with expectations. Whenever you take a
decision or action, write down what you expect to happen. Review results at
regular intervals, and compare them with expectations. Use this feedback
analysis as a guide to reinforce strengths and eliminate weaknesses as well
as for the next round of setting objectives.
Case in Point
Approach at General Electric (GE)
Running the mighty GE enterprise, with its
twelve major businesses,
didn't seem like a
traditional manager. He seemed more like a
superleader. He abandoned the old practice of setting goals for GE's
business leaders. "Now, we don't reward them according to whether or not
they reach their objectives. They're all going to get paid on their
improvement, and they know that. In bureaucratic companies, they waste a lot
of time on making budgets. They waste energy. The world is changing quickly.
can't afford to waste time in bureaucracy. GE is an informal company. We
trust each other."4...
Case in Point
At Canon, a Model Workshop means a
Case in Point
At Fidelity Investments
(a continuous improvement strategy) is reflected in its
performance management and
compensation systems. Each fall, Fidelity companies establish business goals
for the coming business year. These goals are tiered through the company's
various divisions down to the individual manager level. Many of these goals are
focused on improvements in existing products or processes...