Monday Mentor-Week 49-Critical Objectives

Goals. Targets. Objectives. Milestones. All the same thing with a little different nomenclature.



Critical objectives are those measurable, meaningful, comparable and important benchmarks that track progress towards the vision of an organization or unit within a company. These objectives are usually expressed in annual terms but can be created for less than a year in start-ups and environments requiring significant turnaround.


This is another part of strategic planning in which minimizing is better. Five to seven objectives per year is the top end. More will convolute your ability to achieve real ownership and buy-in into these objectives. Our teams must be able to remember them and lock onto them as the year progresses.


Each objective must incorporate a significant business segment. Most commonly, strategic planning will incorporate objectives related to revenue or sales volume, customer service quality, productivity, quality of work or product, team member satisfaction and expense control. These major headings represent not only important areas of organizational success but also those areas in which each individual team member can contribute and participate. They are also the categories that can be easily measured and reported.


The best format of a strategic objective includes a comparable element to a prior year or prior period. By example this would look like “Improve Customer Satisfaction by 4% Over 2010.” This example also includes the measurability required in good strategic planning. By contrast, the example of “Improve Customer Service” meets neither of these requirements. Measurability and comparability are important to demonstrate progress and to connect to important business elements.


The incorporation of comparability also assists the effective leader in promoting improvement and growth. From year to year or period to period, the leader is able to raise the bar in some or all strategic areas of performance. The one required element in this area is that the growth factor cannot be some arbitrary number. The best tool for this is a standard progression analysis that looks at change and improvement from year to year and uses that as the improvement factor for the coming period. Another tool for that purpose is to diagnose capacity for maximum performance and factor that over a three to five year period.


Two final notes on critical objectives include the ability to connect each objective back to a line or element in the company vision and mission. This connectivity will insure that proper progress in being made towards the ultimate target described in the vision. The other final element is the reminder to make sure that all of the critical objectives can be impacted by team members. For example, team members can contribute to revenue but have very little impact on net income.