Organizations exist to accomplish purposes and objectives. This is fundamental to management and leadership.

• "If you don't know where you're going, any road will get you there." (the Koran)
• "If you don't know where you're going, you might wind up somewhere else." (Yogi Berra)

A starting point is defining (clarifying, understanding) the organization's basic purpose or mission

• All objectives and plans should be consistent with and support this purpose
• Daily "fire-fighting" tends to push away attention from purpose
• Better managers make time for reflection about organizational purposes and how their objectives, plans, and activities connect with them

There needs to be a smooth set of links from purpose to action that can achieve objectives:

• Mission (purpose)
• Objectives (= goals)
• Strategies
• Plans
• Tactics, tasks, and actions

It is important to develop good goals, both in terms of content and:

• Defined in terms of results and outcomes, not actions
• Framed as positive results to be achieved rather than problems to be avoided
• Developed sufficiently to be SMART objectives (Specific, Measurable, Agreed-on and understood, Realistic, and Time- and resource-based)

In an organization, there needs to be an integrated hierarchy of objectives:

• Organizational objectives
• Divisional objectives
• Departmental and group objectives...
• (eventually) down to individual objectives

In most situations, especially in conflicts, there are several types of goals, often with several operating at the same time and making the situation more complex:

• Content
• Relational
• Identity (self-esteem, face-saving)
• Process

Objectives may shift during a project or process, so we need to be aware of prospective, transactive, and retrospective objectives

Managers need several types of objectives:
(Some of best objectives apply to two or more of these types)

• Routine (basic, recurring responsibilities that have to be met (e.g., prepare budgets, schedule work activities, staff, evaluate)
• Quality improvement (identify problems and work on improvements)
• Individual & subordinate development objectives
• Innovative:
  - Usually the most difficult to achieve - carry possibility of failure ...and greatest potential for improvement and contribution
  - Include developing and maintaining the future productive capacity
  - "What could I do that I'm not doing now that would make my area of responsibility more productive?"

Some issues in setting and achieving objectives:

• Multiple and competing objectives
• How difficult/challenging (need enough, but not too much)
• How specific, quantifiable - also need qualitative and directional objectives
• Involvement of those who will carry out objectives (commitment)
• Linkages with resources, rewards, evaluation, monitoring
• Feedback, coaching, support

1. Need multiple objectives
2. They should cover all (and only) the critical few key results areas (remember Pareto's Law)
3. Every objective you accept means you have rejected some other objectives (be sure to pick the most important ones)
4. They should include several types of objectives (routine, quality improvement, innovative, personal development) ...but don't stress the routine
5. Any legitimate client demand should become somebody's objective
6. Include both long- and short-range objectives
7. Usually will have both quantifiable and qualitative objectives
8. Objectives need an indicator (valid measure of results to be achieved)
9. Objectives should be stated in observable terms with a target date
10. It helps to state objectives as positive results to be achieved rather than a problem to be avoided
11. Objectives need to be coordinated up, down, and across - to be integrated with and help achieve the objectives of the overall organization
12. Objectives should lead to and be linked with plans, budgets, and management expectations
13. Objectives MUST be closely linked with reward systems
14. Objectives should be challenging but attainable - the performer must perceive that he/she can be a winner
15. There should be created a way to obtain the necessary resources
16. If objectives are conditional, state the conditions
17. Although unknown side-effects can not be predicted, they should not stop setting of objectives
18. There also should be a process to review and revise objectives
19. It helps to involve those performing in setting objectives
20. Experience helps to produce better objectives

We have to deal with unintended side-effects in measuring and rewarding performance:

• Short-term orientation
• Goal displacement (confusion of means with ends)
  - Behavior substitution (quantitative measures tend to drive out qualitative measures)
  - Suboptimization