Establishing long-term strategic objectives and organization-wide goals can be a daunting task. We at OnStrategy know and understand this so we have provided you with a quick and easy overview of what to consider when you are ready to embark on this endeavor.
Org-Wide Goals and Measures — Once you have formulated your strategic objectives, you should translate them into goals and measures that can be clearly communicated to your planning team (team leaders and/or team members). You want to set goals that convert the strategic objectives into specific performance targets. Effective goals clearly state what, when, how, and who, and they are specifically measurable. They should address what you need to do in the short-term (think 1-3 years) to achieve your strategic objectives.
Long-Term Strategic Objectives–You will find the four key areas emphasized by the Balanced Scorecard* provided in OnStrategy to guide you in creating strategic objectives. Using the information gathered in your SWOT, for each of the following areas develop at least one objective, but no more than five to seven.
- The “Financial” perspective indicates whether the company’s strategy, implementation, and execution are contributing to top and bottom line improvement include the following: Cash flow, Sales growth, Market share, and ROE.
- The “Customer” perspective is focused primarily on creating value and differentiation when acquiring, retaining or servicing the customer. This driver deals primarily with gaining and growing customers and market share.
- Focusing on “Internal Processes” in operations has the greatest impact on customer satisfaction. Positive long term results rely on defining the competencies needed to maintain market leadership and maximizing the effectiveness of those internal systems.
- The “People/Learning” perspective relies on a company’s commitment to its greatest resource—people. This area focuses on creating value by developing an environment that fosters learning, innovation, and prioritizing on its “human asset.” The premise is that people drive the other three elements to achieve the company’s goals.