NFIB

Setting and Pursuing Sound Objectives
10/ 28/ 2003

by Charles R. McConnell

Working toward a specific objective enhances efficiency, whether it's the completion of your No. 1 priority task or a clearly identifiable portion of a larger task. But many of the so-called objectives we set and perhaps encourage employees to set are incomplete and thus inadequate. To be sound and truly achievable an objective must include three elements: what, how much and when. Without all three defining characteristics, progress or completion can't be measured.

Consider this: You decide it's necessary to tighten up expenditures for consumable supplies, so you decide your goal is to reduce monthly supply expense. How do you know if the objective has been met? When supply expense has decreased 1 percent, 5 percent or 10 percent? Unless there is a commitment to how much and when, just declaring "what" your goal is remains essentially useless.

Somewhat better than the what-alone objectives are those that also include how much. "Reduce monthly supply expense by 10 percent" provides a specific improvement target; it's not possible to claim success unless 10 percent reduction is achieved or exceeded. Still missing, though, is the vital "when" of the objective. Say Supervisor A and Supervisor B both adopt the objective to reduce monthly supply expense by 10 percent. Assume that A achieves a 10 percent monthly reduction within three months but it takes B six months to reach a 10 percent monthly reduction. Have they performed equivalently by meeting the same "objective?" Hardly. Supervisor A achieved the target in half the time that B required.

In addition to addressing what, how much and when, effective objectives should be:

Challenging. An objective set so that anyone can attain it without really trying is of little value. Every valid objective should have an element of challenge and thus should require at least a bit of "stretch" to attain.

Realistic. An objective must be reasonably possible to attain. The objective set so far beyond anyone's reach is of no more value than an objective completely devoid of challenge.

Manageable. No individual should assume responsibility for achieving a particular objective if its attainment is dependent on the efforts and contributions of others.

Supportive. Any objective, whether taken on by a manager or employee, must be consistent with and supportive of the goals of the business. The only exceptions are personally oriented objectives, such as an individual's intent to take a particular course or complete an external program of study.

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