Defination of Strategic Objectives

Topics: Management, Strategic management, Strategy Pages: 2 (394 words) Published: April 30, 2011
A broadly defined objective that an organization must achieve to make its strategy succeed. Strategic objectives are, in general, externally focused and (according to the management guru Peter Drucker) fall into eight major classifications: (1) Market standing: desiredshare of the present and new markets; (2) Innovation:development of new goods and services, and of skills andmethods required to supply them; (3) Human resources:selection and development of employees; (4) Financialresources: identification of the sources of capital and their use; (5) Physical resources: equipment and facilities and their use; (6) Productivity: efficient use of the resources relative to the output; (7) Social responsibility: awarenessand responsiveness to the effects on the wider communityof the stakeholders; (8) Profit requirements: achievement of measurable financial well-being and growth. Examples of Strategic Objectives

To give you some sense of what strategic objectives look like for real companies, the following have been drawn from my clients over the past several years, grouped by type of SO rather than by client.  Each SO ended with a date phrase such as "by 2001."  These dates have been dropped here.  You can assume a short-term sounding SO had a date for achievement soon after the completion of the plan.  Indeed, sometimes an SO was achieved before the strategic plan was formally adopted and disseminated! Growth 

Achieve $1 billion in annual revenues with $60 million in profits.  Maintain a net profit rate equal to or better than the best world class companies in our industry.  Have investment policies and fiscal procedures to foster aggressive growth and profitability.  Have a comprehensive business development plan. 

Have 6 projects in 3 countries.
Have a management team capable of meeting our strategic objectives.  Have a complete management team.
Have an injury free...
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