5-1 Chapter 5 Defining Objectives © David O’Sullivan

5-2 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?

5-3 Activities [Discussion of selected student ‘Activities’ from previous chapter]

5-4 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

5-5 Stakeholders

5-6 Defining Requirements  Objective data analysis  Delphi forecasting  Focus groups  Conjoint analysis

5-7 Stakeholder Requirements

5-8 Activities

5-9 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

5-10 Strategic Objectives  Two basic elements Thrusts Objectives  Often the terms ‘strategies’ and ‘objectives’ are interchangeable  Sometimes the term ‘decisions’ is used

Thrusts 5-11

5-12 Strategic Thrusts - example  Capacity  Facilities  Technology  Vertical integration  Workforce  Quality  Planning  Organization

5-13 Strategic Thrusts - example  Facilities  Organisation  Processes  Products  Markets  Finance

5-14 Strategic Thrusts - example  Learning and Growth  Customer  Internal Processes  Finance

5-15 Objectives  Statement of organisational goals  Strategic ‘Decisions’  Statement on the allocation of resources (people and money)

5-16 Decisions  Strategic Broad in Scope Long Term Encompassing Empowering  Tactical Narrow scope Short term Specific Enabling

5-17 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.

5-18 Generic Objectives  cost leadership objectives  differentiation objectives  focused (niche) objectives

5-19 Strategic Objectives  Suitability  Acceptability  Feasibility

Methodology 5-20

5-21 Strategic Objectives

5-22 Objectives for Innovation  Most objectives change the operations environment Processes, services, products, etc.  Some objectives change the innovation environment itself Innovation process Innovation resources

5-23 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

5-24 Activities

5-25 Search Online  Brainstorming, MindMap and Creativity - ThoughtOffice Innovation Software Disruptive Innovation – Clay Christensen Jeff Bezos on Amazon