Objective Setting: The Foundation for Organisational Success

All major corporate organisations—at least the successful ones—have objectives as a core element of their performance management system. While setting objectives might not be the most exciting aspect of performance management, it is undoubtedly one of the most important.

It’s the foundation from which employees’ success or failure is determined. When implemented well, compelling objectives ensure that everyone in your organisation is aligned with the company’s goals and moving in the right direction.

Communicating the Vision

High-growth organisations have one thing in common—they’ve mastered communication. Exceptional companies ensure that the big vision is cascaded throughout the organisation, from the leadership team down to the most junior employees.

This process, sometimes called the golden cascade, links each employee's objectives to the company’s vision, realised through specific tasks. For this to succeed, every individual needs to understand how their work contributes to the broader organisational goals.

A famous anecdote involving JFK illustrates this perfectly. During a visit to NASA, he asked a janitor about his role, and the janitor responded: “I help put people into space and bring them back safely.” He understood that keeping the facilities clean and sterile played a critical role in NASA’s mission—and ultimately, in protecting the health of astronauts.

Top-Down or Bottom-Up?

Different sectors approach objective setting in various ways, depending on their organisational culture.

The top-down approach sees managers present their teams with the objectives for their division or department. This method tends to result in faster communication, with tasks and goals divided equally—or in a mutually agreed format.

In contrast, the bottom-up approach involves managers facilitating goal-setting within the team. This can work well when skilfully implemented, as it encourages buy-in, boosts motivation, and instils a sense of accountability.

Objectives = Results, Not Tasks

One common mistake employees make is confusing objectives with the tasks needed to achieve them. To clarify, objectives focus on the results you want to achieve, while tasks are the actions required to get there.

For instance, building relationships with key clients is a task or input. The objective, or result, would be increased sales or revenue from those relationships.

This is why it’s essential that objectives describe the desired results, rather than simply listing a series of tasks.

The S.M.A.R.T. + Method for Setting Objectives

You’d think setting S.M.A.R.T. objectives would be common sense, but in practice, it’s not always straightforward. The S.M.A.R.T. method has been in use since the late 19th century, when American philanthropist Elbert Hubbard observed that many people failed in their endeavours—not due to a lack of intelligence or courage, but because they didn’t organise their efforts around a clear goal.

The S.M.A.R.T. acronym—Specific, Measurable, Achievable, Relevant, and Timely—was formally introduced by George T. Doran in his 1981 paper, “There’s a S.M.A.R.T. Way to Write Management’s Goals and Objectives.”

At Excel Communications, we use an enhanced version of this framework: S.M.A.R.T. +. The + refers to an ecological aspect that reflects today’s workforce dynamics, particularly with Gen Y employees. The ecological component ensures that goals align with an individual’s values and personal ambitions, while also considering the impact on others.

Here’s a breakdown of the S.M.A.R.T. + framework:

• Specific: Clear, understandable, and unambiguous.
• Measurable: Everyone knows when it’s been completed.
• Achievable: Realistic for this person, at this time.
• Relevant: Aligned with the company’s vision.
• Timely: Set for a specific deadline.
• + Ecological: Fitting with personal ambitions, values, and not hindering others.

Ready to Take Action?

By setting S.M.A.R.T. + objectives, you can ensure that goals are both actionable and aligned with personal and organisational growth. It’s time to take the next step and implement this approach in your team.