Objectives

Objectives or goals are the results the organization seeks to achieve. As an integral part of the strategic or business plan, along with mission, vision, values, and strategies, objectives indicate what the organization plans to accomplish.

Objectives are meant to communicate desired outcomes for a number of organizationwide reasons. First, objectives communicate desired outcomes to organizational personnel so that they know how to allocate efforts in support of those desired results. Second, objectives communicate desired results to external stakeholders so they can understand the directions the organization is pursuing. Then, external stakeholders can decide if they wish to support the organization. Third, internal decision makers can allocate resources in the direction of the desired objectives and in appropriate amounts.

Objectives need to exhibit certain characteristics in order to communicate the preceding information to organizational personnel, external stakeholders, and internal decision makers. Objectives should be SMART: specific, measurable, attainable, result oriented, and time determinate.

Objectives should be specific. They should pertain to a certain task or program. Specific objectives help the organization decide the amount of resources to allocate.

Objectives should be measurable. Measurable objectives are quantifiable by date, outcomes, and responsibility. Thus, accomplishment can be verified.

Objectives should be attainable. Organizational personnel should be able to complete the objectives within the time indicated and with existing constraints. Goals that are totally unrealistic and not attainable lose their ability to motivate effort from personnel.

Objectives should be result oriented. Goals should be focused on outcomes so that personnel can see the results that affect stakeholders.

Objectives should be time determinate. The time frame should be established so that accomplishment can be verified.

An example of an objective that meets the preceding criteria is for a pharmaceutical company to establish a profitability objective of earnings per share of $1.40 in one year and $1.55 in two years. Or a hospital may establish an objective of reducing nursing staff turnover to 20% annually in one year and to 15% in two years.