Aims and Objectives, Mission Statements

1. Aims and Objectives, Mission Statements Geoff Leese Sept 1997 Revised Sept 1998, Sept 2001, Sept 2002, Sept 2003, Sept 2005, Sept 2006, Sept 2007, Aug 2008, Aug 2009, Jan 2010

2. Are they the same? A hierarchical list of intentions, becoming more specific and measurable as one goes down the hierarchy.

3. The Mission Statement A short statement that sum up the organisation’s approach and purpose. “Life long learning for the whole community” “What are we FOR?” What business are we in? What business do we want to be in? How might we get there? What’s yours?

4. Strategy Made up of aims and objectives

5. Aims Broad, long term goals. “Where do we want to be?” Probably best to have no more than have a dozen States what we want to achieve, not how we’re going to do it.

6. Objectives Clear, unambiguous, measurable statements Each aim will usually have several objectives Statements of WHAT we will do, not how it will be done.

7. Objectives Clear, unambiguous, measurable statements Each aim will usually have several objectives Statements of WHAT we will do, not how it will be done.

8. Examples of strategic objectives Attaining a predetermined ROCE Increasing shareholders’ earnings Becoming the market leader Reducing borrowing Improving industrial relations

9. Examples of tactical objectives Acquiring a subsidiary in a particular market Extending product range Introducing new manufacturing technology Revising organisational structure

10. Examples of operational objectives Meeting forecast sales next year Increasing market share of some products Cost-cutting programmes Efficient utilisation of plant, machinery and people Improving cashflow position Better credit control

11. SMART Objectives Specific – not general Measurable – objectives without performance measures are pointless! Agreed – commitment of stakeholders Realistic – unrealistic objectives lead to disillusionment and cynicism Time constrained – otherwise they’ll never be achieved!

12. Policies HOW objectives will be pursued.

13. Examples Aim - A happy, healthy, contented, productive workforce. Objective – Improve the health of our workforce by cutting the number of smokers in our workforce by 20% NLT January 2009. Policies Introduce a smoking ban in the workplace Offer practical help to employees to stop smoking

14. Objectives of Private-Sector organisations Profit maximisation Produce & supply goods & services for which demand is increasing Minimise costs of production Maintain output at level where profits are maximised Vary level of supply (needs market domination!) R & D (new products and methods)

15. Objectives of Private-Sector organisations Brand leadership/market domination Corporate growth Expanding existing markets Diversification Takeover Satisficing “Just enough is good enough”

16. Objectives of Private-Sector organisations Survival “buying turnover” Loss-making offset against profit making parts of the group may still be cheaper than “buying in” Strictly defined profit levels Service Employment

17. Objectives of public-sector organisations Stakeholders The Government Public sector workers The Public Wide range of objectives here! Fashion is for “business objectives” to be increasingly important

18. Objectives of Public Sector Organisations Access – available to all regardless of location or income Quality – high quality services that do not cut corners Affordability – services offered at prices that are cheaper than private sector or free at the point of use Equity – available to anyone whatever their background, status, income, class, race, religion, etc.

19. Problems with objectives Bias Complexity Conflict Lack of clarity Communication

20. Influences on Objectives & Policies

21. Reading Bennett chapter two Cole G (1996) Management Theory and Practice, DP publications Chapter 17 Hannagan T(1998), Management Concepts and Practices, FT Pitman Chapter 5 Glossary of terms – follow the link! Writing a Mission Statement – follow the link!

22. Tutorial Questions Give three examples of strategic objectives and three of tactical objectives – for BT if you can! What is a mission statement and what is BT’s? Levitt offers three fundamental questions when writing objectives. What are they and how well do you think BT is addressing them?

23. Tutorial Questions How are objectives and goals sometimes considered to be different? What are SMART objectives? What are the advantages and disadvantages of MBO?