1

Aims and Objectives, Mission StatementsGeoff Leese Sept 1997

Revised Sept 1998, Sept 2001, Sept 2002, Sept 2003, Sept 2005, Sept 2006, Sept 2007, Aug 2008, Aug

2009, Jan 2010

2

Are they the same?

A hierarchical list of intentions, becoming more specific and measurable as one goes down the hierarchy.

Mission Statement

Aims

ObjectivesGoals?

3

The Mission Statement A short statement that sum up the

organisation’s approach and purpose. “Life long learning for the whole

community” “What are we FOR?”

What business are we in? What business do we want to be in? How might we get there?

What’s yours?

(Levitt, 1960)

4

Strategy

Made up of aims and objectives

5

Aims

Broad, long term goals. “Where do we want to be?” Probably best to have no more

than have a dozen States what we want to

achieve, not how we’re going to do it.

6

Objectives

Clear, unambiguous, measurable statements

Each aim will usually have several objectives

Statements of WHAT we will do, not how it will be done.

7

Objectives

Clear, unambiguous, measurable statements

Each aim will usually have several objectives

Statements of WHAT we will do, not how it will be done.

8

Examples of strategic objectives

Attaining a predetermined ROCE Increasing shareholders’ earnings Becoming the market leader Reducing borrowing Improving industrial relations

Bennett chapter 2 page 18

9

Examples of tactical objectives

Acquiring a subsidiary in a particular market

Extending product range Introducing new manufacturing

technology Revising organisational structure

Bennett chapter 2 page 18/19

10

Examples of operational objectives Meeting forecast sales next year Increasing market share of some products Cost-cutting programmes Efficient utilisation of plant, machinery

and people Improving cashflow position Better credit control

Bennett chapter 2 page 19

11

SMART Objectives

Specific – not general Measurable – objectives without

performance measures are pointless! Agreed – commitment of

stakeholders Realistic – unrealistic objectives lead

to disillusionment and cynicism Time constrained – otherwise they’ll

never be achieved!

12

Policies

HOW objectives will be pursued.

13

Examples

Aim - A happy, healthy, contented, productive workforce.

Objective – Improve the health of our workforce by cutting the number of smokers in our workforce by 20% NLT January 2009.

Policies Introduce a smoking ban in the workplace Offer practical help to employees to stop

smoking

14

Objectives of Private-Sector organisations

Profit maximisation Produce & supply goods & services

for which demand is increasing Minimise costs of production Maintain output at level where

profits are maximised Vary level of supply (needs market

domination!) R & D (new products and methods)

15

Objectives of Private-Sector organisations

Brand leadership/market domination

Corporate growth Expanding existing markets Diversification Takeover

Satisficing “Just enough is good enough”

16

Objectives of Private-Sector organisations Survival

“buying turnover” Loss-making

offset against profit making parts of the group

may still be cheaper than “buying in” Strictly defined profit levels Service Employment

17

Objectives of public-sector organisations

Stakeholders The Government Public sector workers The Public

Wide range of objectives here! Fashion is for “business

objectives” to be increasingly important

18

Objectives of Public Sector Organisations

Access – available to all regardless of location or

income Quality –

high quality services that do not cut corners Affordability –

services offered at prices that are cheaper than private sector or free at the point of use

Equity – available to anyone whatever their

background, status, income, class, race, religion, etc.

19

Problems with objectives

Bias Complexity Conflict Lack of clarity Communication

20

Influences on Objectives & Policies

Owners expectations

Objectives and policies

Socialresponsibility

Businessethics

Consumer pressures

Pressuregroups

Manager’sgoals

TradeUnions

Economic Factors

LegislationEmployee expectations

21

Reading Bennett chapter two Cole G (1996) Management Theory

and Practice, DP publications Chapter 17

Hannagan T(1998), Management Concepts and Practices, FT Pitman Chapter 5

Glossary of terms – follow the link! Writing a Mission Statement – follow

the link!

22

Tutorial Questions Give three examples of strategic

objectives and three of tactical objectives – for BT if you can!

What is a mission statement and what is BT’s?

Levitt offers three fundamental questions when writing objectives. What are they and how well do you

think BT is addressing them?

23

Tutorial Questions How are objectives and goals

sometimes considered to be different?

What are SMART objectives? What are the advantages and

disadvantages of MBO?