Register now or log in to join your professional community.
It comes from the objective setting and formulation, a strategic objective is linked wit the company overall strategy, in which the latest is built based on the company vision and mission.
It is important in the objective setting phase is to have SMART objective ( Specific, Measurable, Applicable, Realistic, and Time linked).
You need also to identify the objectives KPI's that will be used as the key measure for the success of the objective.
The most powerful motive for creating strategic metrics is to improve the focus of your team. Measurement must be continuous, so a well-run organization needs to generate monthly financials and track metrics for SOs on a regular basis. The ongoing measurement and regular reporting serve to reinforce the drive to achieve strategic objectives and track progress toward the company’s goals.
So how do you establish strategic metrics to guide your long-term planning and minimizes entropy? First, consider that metrics are made up of measurements against a target or goal. To create clarity around desired outcomes, apply measurements that make sense toward a target goal. If a strategic objective is to increase sales, then use a simple metric like the increase in sales volume. Also, create benchmarks to make the goal achievable over time, rather than setting an unspecific strategic objective such as “increase sales by15 percent.” Break the goal into measurable milestones, so your metrics become an increase of1 percent the first month,2 percent the second month,5 percent the third, and so on to achieve the strategic objective. Adjust the targets as needed to achieve and even exceed your strategic goals.
Do’s and Don’ts of Strategic Planning Metrics
The metrics will vary depending on your strategic goals, but for the sake of discussion, let’s assume there are fiscal strategic objectives for the coming year. Set the metrics for your strategic plan accordingly, and avoid the common traps. Here is a simple list of “do’s” and “don’ts”:
§ - Do tie metrics to strategic planning and anticipated outcomes.
§ - Do makes sure everyone in the organization, from the C-level executives ion down, understands what is being measured and why.
§ - Do limit the number of measurements to promote better understanding and usefulness. Focus on a handful of metrics that tracks truly strategic variables.
§ - Do identify the drivers that affect the desired outcomes for the organization.
§ - Do use graphics to display results and dramatize interdependencies, trends, and outliers.
§ - Do link metrics to performance rewards whenever appropriate.
§ - Do accept uncertainties. Anticipate some failures and prepare to adjust course as needed.
§
§ - Don’t limit metric responsibilities to senior management. Everyone should have a stake in the process and a role in contributing to the company’s success.
§ - Don’t treat metric development as a one-time event. As conditions change so should the metrics.
§ - Don’t wait for perfection of every detail. Strive for best effort and adjust as needed.
§ - Don’t introduce metrics that are solely tied to compensation.
There is some confused thinking behind this question.
Firstly, there is no such thing as a "strategic objective". What you are talking about is an "objective". Strategy is about how you get from here to there.
Secondly, you can't measure an objective. (You can measure your progress towards it, but that's not what you asked.)
Thirdly, if you are thinking strategically you never have to try and measure whether an objective has been attained - it's really obvious. A good objective for a small expanding retail business might be to "open two new shops by the end of the year". No measurement problems here.
All we're left with is how you identify a strategic objective. This is usually also obvious, but in some circumstances it can be very difficult to pin down specifically what the objective would be, or to choose between more than one possible objective.
Your question ignores the most difficult part of all, which is figuring out the actual strategy for achieving the objective.
Measuring progress is often about figuring out what your KPIs are, and what your NVIPI*s are.
*Not Very Important Performance Indicators
Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.