Inspiring ObjectivES are

❶ Stretching   ❷ Achievable

Stretch your goals and
your goals will stretch you!

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How To Set Right Objectives

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.

 The objectives must be:

focused on a result, not an activity

be consistent

be specific

be measurable

be related to time

be attainable
 

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.

Setting right objectives is critical for effective performance management. Corporate intents such as higher profits, shareholder value, and customer satisfaction are not objectives because they don't tell managers what to do. Objectives must specify priorities and focus. They must map the journey ahead towards better solutions for the customer and higher profits.

The Starting Point

Knowledge of yourself and your unit is a vital starting point in setting objectives... More

 
 

MBO: Setting Objectives

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 achieve the right results... More

 

 
 

Applying Feedback Analysis

Undertake a feedback 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.

 

 
 

Example: Fidelity Investments

At Fidelity Investments commitment to Kaizen (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... More

 

 
 

Example: A Different Approach at GE

Running the mighty GE enterprise, with its twelve major businesses, Jack Welch 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. We can't afford to waste time in bureaucracy. GE is an informal company. We trust each other."... More

 
Jack Welch advice business quotes

Stretch essentially means using dreams to set business targets – with no real idea of how to get there. If you do know how to get there – it's not a stretch target.

Jack Welch

GE