Operational Objectives

6 Key excerpts on "Operational Objectives"

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  eBook - ePub

  Pricing in Business

  • Douglas Hague(Author)
  • 2018(Publication Date)
  • Taylor & Francis

    (Publisher)

  Another kind of objective we found was one which laid down the results the firm as a whole was expected to achieve in a general way. It set out the levels of turnover, profit, etc. to be reached by the whole firm but it did not explain in detail how any individual product, or department, was expected to contribute to those results. Nor did it provide a plan of action for those responsible for individual products. These objectives were again non-operational ones for managers concerned with particular products, even though for the whole firm they were less vague than the non-Operational Objectives discussed in the previous paragraph. Indeed, they were often quite precise. This second kind of non-operational objective is important because it helps to determine the atmosphere within which managers have to set and to achieve specific targets for individual products. All the firms we studied had non-Operational Objectives of the second kind, whether they were implicit or explicit, or worked out in more or less detail.

  4.3 Operational Objectives

  All the firms also had Operational Objectives. The distinguishing characteristics of Operational Objectives are: 1.They set specific tasks for the firm or for particular individuals or groups. 2.They enable the firm to discover whether or not these tasks have been performed. 3.They state clearly the way the firm will judge whether or not the tasks have been achieved, both in terms of what will be judged and how. 4.They set a time limit for carrying out each task.

  It is because they are precise that Operational Objectives are operational.

  If they are to achieve their targets, firms must have arrangements for stating at least their key objectives in operational terms and for comparing performance with these Operational Objectives. Only in this way can they discover how far their objectives have been achieved. Firms should go on to study any differences between results and objectives and take whatever remedial action is necessary to bring the two back into line. However, this leads us beyond objectives to control systems. We shall discuss these briefly in Chapter 11

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  Data-Driven Organization Design

  Delivering Perpetual Performance Gains Through the Organizational System

  • Rupert Morrison(Author)
  • 2021(Publication Date)
  • Kogan Page

    (Publisher)

  This needs to be performed efficiently – i.e. at a financial cost that can be accommodated. A key theme of this book is how to make performance gains over time. To make a performance gain, you must achieve your objectives for less cost. But be careful what you wish for, because it might not be what you really need, or it might come at a cost not worth paying. What is clear is the importance of measuring the right things: what is measured is far more likely to get done. Attempting to distil success into a single measure drives poor behaviour and destruction of value. It creates an unhealthy organization which, if dogmatically followed, will lead to failure. Objectives management is both a strategic and an operational process. It begins with the overall corporate strategy, which is broken down into key organizational goals. As I mentioned in Chapter 2.2, goals and objectives are not the same thing, but they are often confused. Goals are the intended results you want your organization to achieve based on your vision and strategy. They are broad and should be directional, aspirational, audacious and inspiring. Goals don’t need to be specific and measurable. The strategic side of OM breaks down the company’s goals into a hierarchy of high-level company objectives. Objectives turn organizational visions into something meaningful and tangible: concrete, actionable steps that can be worked on and impacted immediately. The operational side of OM relates to both the cascading of objectives throughout the organization and to tracking, monitoring and managing the progress of the organization against those objectives. As I make clear in this chapter, objectives can be tracked and managed on an organization-wide level, but the tracking and managing of an individual’s objectives should not be taken as a measure of their performance

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  Government and Not-for-Profit Accounting

  Concepts and Practices

  • Michael H. Granof, Saleha B. Khumawala, Thad D. Calabrese(Authors)
  • 2021(Publication Date)
  • Wiley

    (Publisher)

  This chapter is directed mainly to budgeting, performance reporting, and evalua- tion. These topics are linked with a common thread—the importance of defining the organization’s mission, developing broad goals, and establishing operational objec- tives. Establishing appropriate Operational Objectives is at the heart of budgeting because if an organization doesn’t have a clear idea of where it wants to go, it cannot determine how to get there and when it has arrived. Nevertheless, as shall be stressed in this chapter, the importance of Operational Objectives is matched by the challenge of establishing them. Virtually no managers of government or not-for-profit organiza- tions deny, or even minimize, the need for Operational Objectives—but for organiza- tions other than their own. Their own objectives, they may contend, are too intangible to quantify. What Are the Characteristics of Sound Operational Objectives? Operational Objectives should be central to the functions that compose the manage- ment cycle. They should not simply be technical contrivances within the province of budget analysts, accountants, and auditors. Derived from the organization’s mission and its goals, they should be the basis for allocating resources, managing day-to-day activities, and distributing rewards and reprimands, per an often-repeated aphorism, “What we measure is what we manage.” This section sets forth ideal characteristics of Operational Objectives but at the same time emphasizes that the ideal is not readily attainable. Operational Objectives Should Represent True Ends (Outcomes), Not Means (Outputs) Operational Objectives should be distinguishable from the means of achieving the organization’s broad goals. They should not preclude alternative means of accomplish- ing the desired results. The “true” goal of a state highway department, for example, might be to enable drivers to reduce travel time from home to work rather than the obvious one of building more miles of highway.

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  Key Trends in Corporate Training & Development

  • Surbhi Jain(Author)
  • 2019(Publication Date)
  • Society Publishing

    (Publisher)

  In the same way, goal setting should be seen as only a part of the process as opposed to the only element that determines success. Prescribing them leads to several issues including failure to consider non-goals aspects, promotion of unethical behavior, corrosion of culture, minimized intrinsic motivation, and distorted risk preferences among other things. It is important to avoid such issues to maintain a healthy firm or program. Key Trends in Corporate Training & Development 180 7.3 SHORT-TERM/Operational Objectives The Operational Objectives are goals that bring an organization close to its long-term goals. They are related to the strategic goals because an individual or a firm will only achieve its strategic goals once they achieve the operational type. A trainer coming up with the goals must consider the SMART elements. There is a chance that internal and external influences will affect the ability of the trainer to achieve them. The internal influences may refer to the availability of finances for the process. The type and size of the organization will also be a determining factor. The stakeholders will also be influential. The external influences include the changes in the economic and legal situations. The funds being allocated for training will be constrained if the economic conditions are not favorable for a firm. The availability of technology will enhance the training processes. A firm that does not invest in the new systems and tools in the field will be impacted negatively. Coming up with Operational Objectives is critical because it motivates the trainees to be involved in the programs (Petryni, 2018). They will feel that they have made remarkable accomplishments if they achieve short-term goals. It will hence inform their decision to continue making the same efforts. They are also able to think critically, which in turn enhances their productivity levels.

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  Systematic Strategic Planning

  A Comprehensive Framework for Implementation, Control, and Evaluation

  • Hakan Butuner(Author)
  • 2015(Publication Date)
  • Auerbach Publications

    (Publisher)

  Strategic objectives and main goals answer the question “ what do we want to achieve ?” within the strategic planning system. A strategic objective demonstrates the point that the business con-siders attaining within a general framework. Strategic objectives must be designed to further the function of the business and at the same time should be realistic and achievable. Characteristics of strategic objectives: • Must be consistent with mission, vision, and principles • Must contribute to the ability of business to fulfill its mission 115 STRATEGIC OBJECTIVES • Must be ambitious, but realistic and achievable • Must enable the business to transform from its current status to desired status in the future • Must clearly express the point desired to be attained, but must not explain in detail how it will be attained • Must be adaptable for employees so that they comply with the mission of the organization • Must be shaped according to the priorities of the business • Must cover a medium-term timeframe • Must not be modified unless significant external changes occur Examples of strategic objectives : • Southwest : “Do the right thing” • Motorola : “Total customer satisfaction” 10.2 Main Goals Main goals are specific and measurable subobjectives specified for achievement of strategic objectives. Unlike strategic objectives, goals are expressed in quantifiable terms and cover a shorter term. Multiple goals may be established to achieve a strategic objective. Main goals are the qualitative and quantitative expression of stra-tegic objectives within a defined timeframe. For this reason, they are measurable subobjectives intended for outputs to be achieved. Goals should be expressed in terms of quantity, cost, quality, and time. Furthermore, while establishing main goals, it would be useful to use strengths more efficiently and take measures for compensating the weaknesses.

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  Organisations and the Business Environment

  • Tom Craig, David Campbell(Authors)
  • 2012(Publication Date)
  • Routledge

    (Publisher)

  Organisational and Business Objectives

  DOI: 10.4324/9780080454603-2

  Learning Objectives

  After studying this chapter, students should be able to describe:

  • mission, vision and values of an organisation;
  • the purpose of an organisation’s mission statement;
  • the complex nature of defining business goals and objectives;
  • the most important business objective;
  • the stakeholders;
  • the view that stakeholder coalitions determine the business objectives;
  • the view that an organisation’s principals essentially determine the business objectives.

  2.1 Vision

  This is an aspirational view of the desired state of the organisation at a point in the future. The timeframe is dependent on the nature of the organisation and its environment but a typical vision would be set for 3–5 years ahead and reviewed annually in line with actual results and changing circumstances. The vision is in effect a statement of strategic intent that serves to focus the energies of the organisation management towards the setting and achievement of specific goals and objectives. Its aspirational nature means that it is consistently revised, as each set of goals are achieved, and further stretching future situations are established.

  2.2 Mission

  The mission of an organisation is a general expression of the overall purpose of the organisation or, more simply, a broad description of the business it is in – its raison d’être. It broadly defines the scope and boundaries of the organisation, which should be in line with the expectations and values of major stakeholders.

  Mission Statements

  Some organisations find it helpful to provide a concise and clear written statement of their broad objectives. Whilst such statements are called different names, most find the term mission statement

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