Introduction Of all the functions involved in management, planning is the most important. As the old saying goes, “Failing to plan is planning to fail”. Setting goals and objectives is the first and most critical step in the planning process. Employers need to be sure all employees are well trained in how to set these important performance measurements. This sample presentation is intended for presentation to all employees. It is designed to be presented by an individual who has knowledge of the basics of setting goals and objectives, of the employer’s own policies and practices on goals and objectives setting, tactical and strategic planning, and performance management. This is a sample presentation that must be customized to include and match the employer’s own policies and practices.
Objectives At the close of this session, you will be able to: • Recognize the difference between goals and objectives • Understand the importance of setting goals and objectives • Describe how goals and objectives are set at (name of company) • State what SMART objectives are
Goals vs. Objectives Although the terms “goals” and “objectives” are often used interchangeably, there is a difference between them: Goals • General • Intangible • Broad • Abstract • Strategic – long-range direction, set by top executives • Objectives • Specific • Measurable • Narrow • Concrete • Tactical – short-range, set by mangers to accomplish goals
Quiz – Goals vs. Objectives Which of these are goals and which are objectives? • Increase profitability • Improve community relations • Provide short-term disability insurance to employees by mid-year • Improve employee computer skills *Note to presenter: Ask “Is this a goal or an objective?” If a goal, ask what the related objective would be – if an objective, ask what the general goal might be
Importance of Setting Goals & Objectives • Planning is the most important management function. • As the old quote goes, “Failing to plan is planning to fail” • Setting goals and objectives is important because it is the first and most critical step in a company’s planning process.
How We Set Goals & Objectives • At (name of company) top management establishes our corporate goals each year and for the next 3-5 years as part of the company’s strategic plan. • Under our Management by Objectives (MBO) process, individual managers use these goals to set their departmental objectives, their own objectives, and their employee’s individual objectives. • We evaluate quality of performance of managers and employees based primarily on their accomplishment of these objectives.
SMART Objectives At (name of company) we set SMART Objectives: S Specific M Measurable A Achievable R Realistic T Time-oriented
Specific Objectives Specific objectives are: • Concrete • Detailed • Focused • Well-defined • Straight-forward • Action-oriented
Specific Objectives cont’d. When setting objectives that are specific, ask: • What am I going to do? Use action verbs such as develop, execute, conduct, build • Why is it important to do this? • Who is going to be involved? • When do I want this to be completed? • How am I going to do this?
Measurable Objectives • Measurements for objectives help you know when you have accomplished them. • If you set an objective that is measurable, when you complete it you have tangible evidence of completion.
Measurable Objectives cont’d. When setting objectives that are measurable, ask: • How will I know when this objective has been achieved? • What measurements can I use?
Achievable Objectives • Achievable objectives are those that you can actually accomplish (something you can really do within the time frame set) and not an aspiration or vision. • Achievable objectives need to challenge you but not so much so as to be unattainable or to cause frustration in being unable to complete.
Realistic Objectives Realistic objectives are those that you have the resources to accomplish including: • Skills • Funding • Equipment • Staff
Realistic Objectives cont’d. When setting objectives that are realistic, ask: • Do I have the resources to accomplish? • Do I need to rearrange my priorities to accomplish? • Is it possible to complete this objective?
Time-Oriented Objectives • Time-oriented objectives are those which have deadlines for completion. The time frames create sufficient urgency and lead to action. • The deadlines, just as with overall objectives, must be achievable and realistic. • For a complex objective, break into small parts with a date for completion for each.
Time-Oriented Objectives cont’d. When setting objectives that are time-oriented, ask: • What is the earliest yet achievable and realistic date for this objective to be completed? • Have I included this date in the statement of the objective?
Summary Although the terms “goals” and “objectives” are often used interchangeably, there are significant differences: • Goals are general, intangible, broad, abstract, and long-range directions generally set by top executives • Objectives are specific, measurable, narrow, concrete, and are short-range plans generally set by managers to accomplish goals.
Summary cont’d. • Setting goals and objectives is important because it is the first and most critical step in the planning process. • Under our MBO process, top management sets our corporate goals. Managers use these goals to set department objectives, their own objectives and their employees’ objectives.
Summary cont’d. At (name of company) we set SMART Objectives S Specific M Measurable A Achievable R Realistic T Time-oriented
Course Evaluation Please be sure to complete and leave the evaluation sheet you received with your handouts. Thank you for your attention and interest!