Establishing Strategic Goals, Objectives and Performance Targets
Goals are the broad, primary results that management seeks to achieve in the plan.
Objectives are the specification and quantification of those goals.
The result of Objectives, Performance targets cannot be set on the basis of whatever management decides would be “nice.” If goals and objectives are to be something other than “pie-in-the-sky wishful thinking,” and if, at the same time, they are to serve as a tool for stretching the enterprise to achieve its full potential, then they must meet the criterion of being challenging but achievable. Satisfying this criterion means setting objectives in the light of several important “inside-outside” considerations.