Chapter 5
Defining Objectives
© David O’Sullivan
5-1
Reflections
 Outline the process of defining goals for an
organization.
 Explain the benchmarking process.
 Explain the difference between rational
and incremental goal definition.
 What do each of the letters in PEST stand
for?
 How do strategic objectives differ from
performance indicators?
 Define a mission statement.
 How does mission differ from vision?
5-2
Activities
[Discussion of selected student
‘Activities’ from previous chapter]
5-3
Learning Targets
 Describe the importance of stakeholders in the
innovation process
 Explain the terms transactional and contextual
requirements of stakeholders
 Define strategic thrusts
 Understand how to develop strategic objectives
 Explain the importance of concise strategic plans
 Discuss how to evaluate strategic objectives
 Understand the need to monitor emergent objectives
5-4
Stakeholders
5-5
Defining Requirements
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Objective data analysis
Delphi forecasting
Focus groups
Conjoint analysis
5-6
Stakeholder Requirements
5-7
Activities
5-8
Strategic Plan
 The strategic plan can be broken down into
two related areas:
 Strategic thrusts and
 Strategic objectives
 The strategic thrust identifies a specific
area of focus. Different industry sectors will
place greater focus on particular thrusts,
given their importance to the industry
 strategic objective relates to the choices
that the organization makes in order to
innovate
5-9
Strategic Objectives
 Two basic elements
 Thrusts
 Objectives
 Often the terms ‘strategies’ and
‘objectives’ are interchangeable
 Sometimes the term ‘decisions’ is
used
5-10
Thrusts
5-11
Strategic Thrusts - example
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Capacity
Facilities
Technology
Vertical integration
Workforce
Quality
Planning
Organization
5-12
Strategic Thrusts - example
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Facilities
Organisation
Processes
Products
Markets
Finance
5-13
Strategic Thrusts - example
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Learning and Growth
Customer
Internal Processes
Finance
5-14
Objectives
 Statement of organisational goals
 Strategic ‘Decisions’
 Statement on the allocation of
resources (people and money)
5-15
Decisions
 Strategic
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Broad in Scope
Long Term
Encompassing
Empowering
 Tactical
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Narrow scope
Short term
Specific
Enabling
5-16
Attributes
 Objectives provide GUIDANCE for change
over 1/2/3 years
 Objectives are dynamic and receptive to
change
 Objectives are pro-actions not reactions
 Objectives should not replace intuitive
thinking
 Objectives only identify most significant
issue. Other issues will also exist.
5-17
Generic Objectives
 cost leadership objectives
 differentiation objectives
 focused (niche) objectives
5-18
Strategic Objectives
 Suitability
 Acceptability
 Feasibility
5-19
Methodology
5-20
Strategic Objectives
5-21
Objectives for Innovation
 Most objectives change the
operations environment
 Processes, services, products, etc.
 Some objectives change the
innovation environment itself
 Innovation process
 Innovation resources
5-22
Summary
 Describe the importance of stakeholders in the
innovation process
 Explain the terms transactional and contextual
requirements of stakeholders
 Define strategic thrusts
 Understand how to develop strategic objectives
 Explain the importance of concise strategic plans
 Discuss how to evaluate strategic objectives
 Understand the need to monitor emergent objectives
5-23
Activities
5-24
Search Online
 http://www.youtube.com
 Brainstorming, MindMap and Creativity ThoughtOffice Innovation Software
 Disruptive Innovation – Clay Christensen
 Jeff Bezos on Amazon
5-25