Operational objective

In business, operational objectives (also known as tactical objectives) are short-term goals whose achievement brings an organization closer to its long-term goals. It is slightly different from strategic objectives, which are longer term goals of a business, but they are closely related, as a business will only be able to achieve strategic objectives when operational objectives have been met. Operational objectives are usually set by middle managers for the next six to twelve months based on an organisation’s aim. They should be attainable and specific so that they can provide a clear guidance for daily functioning of certain operations. This business term is typically used in the context of strategic management and operational planning.

Peter Drucker suggested that operational objectives should be SMART, which means specific, measurable, achievable, realistic, and time constrained.

First, an operational objective should be specific, focused, well defined and clear enough rather than vague so that employees know what to achieve via the work. A specific objective should state the expected actions and outcomes. This would help to prevent the possibility of employees working for different goals.

Secondly, an operational objective should be measurable and quantifiable so that people can know whether it has been met or not. For example, an objective might be increasing sales revenue by ten percent. This would prevent the confusions and conflicts on whether it has been met between different stakeholders.

Thirdly, an objective should be achievable and feasible. It also should be agreed by stakeholders, especially by employees. If they think it is un-achievable, it might demotivate them.

Fourthly, an objective should be realistic as well as challenging. It should be reasonable given their limited resources.

Lastly, it should have a specified deadline (time frame) for its achievement. This would prevent the work from dragged on, and would help to increase productivity. It is also good to determine priorities. For example, operational objectives that would have greater influence on customer satisfaction should be completed in a faster time frame than those have less influence.

It might be difficult to set operational objectives that are understood and accepted by all employees, as they might see different priorities and values. Therefore, it is important to let employees to participate in the determining of the objectives and to state them as clearly as possible. After setting appropriate operational objectives for each department, business plans can then be made to achieve them.

According to Drucker P.F., objectives must be reviewed and changed constantly. This is because operational objectives can be influenced by many internal and external factors. Organisations may need to change their objectives over time in response to changes in their environment.

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