Lecture 7

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Short-Term Objectives
Short-term objectives
• measurable outcomes achievable or intended to be achieved in one year
or less.

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Short-Term Objectives (contd.)
Short-term objectives “operationalize” long-term objectives.
Discussion about and agreement on short-term objectives help raise
issues and potential conflicts within an organization
Short-term objectives assist strategy implementation by identifying
measurable outcomes of action plans or functional activities, which can
be used to make feedback, correction, and evaluation more relevant
and acceptable

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 Potential Conflicting Objectives
Ex. 10.2

and Priorities

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Short-Term Objectives
Short-Term Objectives provide:
• Specificity

• Time frame for completion

• Who is responsible—Accountability

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Qualities of Effective Short-
Term Objectives
Measurable
Priorities
Cascading: From long-term objectives to short-term objectives

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Qualities of Effective Short-
Term Objectives (contd.)
Measurable
•Measurable activity
•Measurable outcomes
Priorities
•Simple ranking
•Relative priority / Weights
Linked to Long-Term Objectives
•Cascading effect

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Creating Measurable Objectives

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Milliken Global Environmental Objectives

9
Functional Tactics
Detailed statements of the “means” or activities
that will be used by a company to achieve short-
term objectives and establish competitive
advantage.

10
Functional Tactics (contd.)
In a sense, functional tactics translate thought into
action

Every value chain activity in a company executes

functional tactics that support the business’s strategy
and help accomplish strategic objectives

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Functional Tactics (contd.)
Functional tactics are different from business or corporate strategies in
three fundamental ways:
◦ Specificity
◦ Time horizon
◦ Participants who develop them

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Specificity in Functional Tactics vs. Business Strategy

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