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Chapter 5

Defining Objectives

© David O’Sullivan

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Reflections Outline the process of defining goals for an

organization. Explain the benchmarking process. Explain the difference between rational

and incremental goal definition. What do each of the letters in PEST stand

for? How do strategic objectives differ from

performance indicators? Define a mission statement. How does mission differ from vision?

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Activities

[Discussion of selected student ‘Activities’ from previous chapter]

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Learning Targets Describe the importance of stakeholders in the

innovation process Explain the terms transactional and contextual

requirements of stakeholders Define strategic thrusts Understand how to develop strategic objectives Explain the importance of concise strategic plans Discuss how to evaluate strategic objectives Understand the need to monitor emergent objectives

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Stakeholders

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Defining Requirements

Objective data analysis Delphi forecasting Focus groups Conjoint analysis

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Stakeholder Requirements

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Activities

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Strategic Plan The strategic plan can be broken down into

two related areas: Strategic thrusts and Strategic objectives

The strategic thrust identifies a specific area of focus. Different industry sectors will place greater focus on particular thrusts, given their importance to the industry

strategic objective relates to the choices that the organization makes in order to innovate

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Strategic Objectives Two basic elements

Thrusts Objectives

Often the terms ‘strategies’ and ‘objectives’ are interchangeable

Sometimes the term ‘decisions’ is used

Thrusts

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Strategic Thrusts - example Capacity Facilities Technology Vertical integration Workforce Quality Planning Organization

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Strategic Thrusts - example

Facilities Organisation Processes Products Markets Finance

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Strategic Thrusts - example

Learning and Growth Customer Internal Processes Finance

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Objectives

Statement of organisational goals Strategic ‘Decisions’ Statement on the allocation of

resources (people and money)

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Decisions Strategic

Broad in Scope Long Term Encompassing Empowering

Tactical Narrow scope Short term Specific Enabling

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Attributes Objectives provide GUIDANCE for change

over 1/2/3 years Objectives are dynamic and receptive to

change Objectives are pro-actions not reactions Objectives should not replace intuitive

thinking Objectives only identify most significant

issue. Other issues will also exist.

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Generic Objectives

cost leadership objectives differentiation objectives focused (niche) objectives

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Strategic Objectives

Suitability Acceptability Feasibility

Methodology

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Strategic Objectives

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Objectives for Innovation

Most objectives change the operations environment Processes, services, products, etc.

Some objectives change the innovation environment itself Innovation process Innovation resources

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Summary Describe the importance of stakeholders in the

innovation process Explain the terms transactional and contextual

requirements of stakeholders Define strategic thrusts Understand how to develop strategic objectives Explain the importance of concise strategic plans Discuss how to evaluate strategic objectives Understand the need to monitor emergent objectives

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Activities

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