How to set better objectives

What is an objective?

An objective is a task to be achieved.

Organisations must continually set, and achieve, objectives if they are to deliver the purpose they exist for.

These high level objectives can only be accomplished if they are divided into tasks for specific teams; and in turn, tasks for specific individuals.

The outcome of the whole is a summation of individual activities. There must be clear linkage between organisational and individual objectives.

The benefit of having defined objectives within an organisation is that every individual clearly understands what role they need to perform and what results they need to achieve.

In other words, they know what is required of them, and on what basis their performance will be measured. They know what they have to do to be, safe, secure, involved, valued, and grown in competence over the coming year.

What sort of objectives

Ask yourself why you were hired, what is expected of you. The answer is usually found in a document that various organisations called a Job Description, or Roles and Responsibilities or Permanent Objectives.

Irrespective of the role everybody will be expected to meet organisational standards in the following areas

• Behaviours and attitudes.
  Are they the best they can be?
• Interpersonal skills
  Can you work successfully with people not like you?
• Technical Competence
  Are your key skills up to date?
• Leadership
  Do you do the right thing; are you effective?
• Management
  Do you do things right; are you efficient?
  

These are areas in which you could consider setting some objectives for improved personal performance. Not only will you have an easier life, so will the team and organisation that you are part of.

There should also be some operational objectives that will improve the financial performance of the business. They are traditionally found in these areas

• Productivity
  What can we do differently to get more from the same?
• Price
  What can we do to defend or increase our price?
• Cost
  What we buy that cosst less than we currently pay?
• Volume
  How can we pump up the volume: New products; New Clients?
  

There are others that the organisation depends upon for its existence and success. It is essential that objectives are set that maintain or improve relationships in these areas.

The stakeholders, they are traditionally the

• Shareholders
  Do we evidence to them we are worthy of their investment?
• Customers
  Do we have what they want, do we keep our promises?
• Staff
  Do they tell their friends that this is a great place to work?
• Suppliers
  Do they go out of their way to help your organisation improve?
• Community
  Are your neighbours proud your organisation is part of the community?
  

As you can see there are many places to look for improved performance, but if the organisation is to use its scarce resources efficiently and effectively specific areas must be identified as priorities. This is usually done by the most senior management in the organisation, and then cascaded down through the business. In this way each individual and team objectives clearly links together to achieve the desired goal.

However there is a need sometimes to be pragmatic. In some organisations messages about the big objectives run off in the sand! It then falls to individual teams to set relevant objectives for improvements in their area of activity. Bottom up objective setting is better than no objective setting.

So what exactly is it we are trying to do?

In considering your objectives, it may help you to bear in mind the SMART checklist. This recommends that objectives should be:

Specific

Specific means that an action or behaviour is linked to a rate per period of time, an absolute number, or percentage improvement or reduction; or some other unit of measurement.

For example. If we need to make more sales calls on the phone everyday; that statement is very specific in describing the challenge to be overcome. It does not however quantify the improvement expected. If we say everybody must make 10 in a day, it is then clear what must be done.

Measurable

Whilst we are now clear what the specific objective is, how will we measure progress against it. What system, or process, is in place that counts the calls made by individuals? Can one be installed, will it be automatic or will an individual be required to analyse outputs.

If you can’t measure it, you can’t manage it.

Achievable

Objectives must be achievable. If there is no chance of success in the mind of the individual they will not even start the journey. Objectives need to be stretching, not easy; the expectation should be no more than a strong likelihood of success. They should be based on a work rate that is reasonable, and a conscientious behaviour.

Relevant

The objective must always fall within area of activity of the individual or team, and must be something they can change. It also must link back to organisational improvement.

For example. Asking delivery drivers to find the best funding arrangement for their trucks is hardly relevant to their day job or skill set. But asking them to improve their fuel consumption or tyre wear probably is.

Time Based

What is the start, or finish date of this objective? Will there timed interim marker posts during the journey?

Some Rules

• When setting big objectives for the year ahead is a good idea to stick to the rule less is more. Perhaps no more than five or six major objectives for the year.

• Each of the major objectives should viewed as what we are striving to achieve. We should then list how we intend to achieve them.

• This list of how’s should then create SMART objectives that will be regularly reviewed in the one2ones.

• Ensure that work to specific operational objectives leaves sufficient time for the day job.

• It is not unusual that once the journey towards the objective has begun to recognise that the objective has to be modified. It is vital that the changes are recorded, and measurement starts again on the new modified objective.