Develop Yearly Corporate Objectives

(Activity) for Tier: Organization

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PURPOSE

The goal of this activity is to establish yearly organizational objectives. Senior management is responsible for understanding the marketplace, developing business strategies, and defining business objectives. It is also essential that senior management set and communicate these organizational objectives once defined.

PARTICIPATING ROLES

• ACCOUNTABLE

  • Chief Executive Officer

• RESPONSIBLE

  • Chief Executive Officer
  • Chief Operations Officer
  • Chief Technology Officer
  • Chief Information Officer
  • Chief Financial Officer
  • Business Unit Leader

INPUTS

• Three Year Strategy
• SWOT Data
• Employee/Learning
• Customer
• Finance
• Process

ENTRY CRITERIA

• Strengths, Weaknesses, Opportunities, and Threats (SWOT) data has been collected from an all employees confidential survey, compiled, and reviewed.
• The executive team and stakeholders review the three-year strategy for currency.

WHEN

Yearly

SUB-ACTIVITIES

1. Review progress on the Three-year strategy

   • The three-year strategy is reviewed in relationship to the current operating plan, which represents the first year’s execution. The strategy is updated based on progress on the current operating plan, the SWOT, and emerging business necessities.

2. Analyze SWOT Data at Business Unit

   • The SWOT data is gathering underneath the Balanced Scorecard (BSC) dimensions of Employee/Learning, Customer, Finance, and Process from an all Employees Survey. A senior executive committee processes the data and it is normalized for sharing with other senior stakeholders and eventually all supervisors. At the business unit (BU) level, the executive team collaborates with all BU supervisors to prioritize top SWOT concerns in small group teams that brief their results.
   • A rubric for providing input is used, similar to one item for the company, one for the business unit, and one wild card to frame the small group’s discussion and ensure review/input for each SWOT area.

3. Brainstorm Business Unit Objectives and Key Results (OKRs)

   • After debriefing all small group SWOT exercises, supervisor groups perform an action setting exercise to define both an OKR for the business unit and the company for the next annual period for each of the BSC areas. These small group sessions with three supervisors allow each to have input on how to turn the SWOT into strategic action for the next year.

4. Document Yearly Business Objectives and Key Results

   • At the annual strategy meeting, the BUL provides a brief of the SWOT/OKR workshop results to the executive team and other BULS. After all briefs are performed, the OKRs are analyzed for both patterns and priorities. Executives also provide progress summaries on the current strategy and any other emergent factors that need to be considered in the next operating plan. The executive/BUL team than split up into small teams to create the objective portion of the OKR for each of the BSC areas. Each team provides a summary brief of their effort, and as a combined group the objective is synthesized into a primary BSC Objective(s) for the next strategic year.
   • Each team then works up key results (KR) to measure progress and keep score of the achievement of the objective during the next strategic year. This will inform both the executive team and company that the goal has been achieved when accomplished.
   • Annual OKRs for each of the BSC areas are loaded into a draft strategy using the Inspire software.
   • Data dictionaries are created for each of the annual key results and linked in the OKR description areas.

   Note

   When published, any employee with appropriate permission rights can review the OKR, and its data dictionary and the current quantitative results of the KRs achievement. While it is possible to secure sensitive OKRs to a smaller subset of employees, most OKRs are public to all employees.

5. Communicate Yearly Business Objectives and Key Results

   • The next year’s strategic operating plan is communicated to all employees via an All Hands zoom/video conference. The communication includes a summary of our strategic planning process, the specific results as defined by the new objectives and the key results that will all each person in the company to measure the objective’s completion. Strategy map posters are also produced and distributed to employees.

OUTPUTS

• Yearly Corporate Objectives

EXIT CRITERIA

• Yearly Corporate Objectives have been published and communicated to the organization.

NEXT ACTIVITY

Todo

fill in next activity.

SEE ALSO

Process Guidance Version: 10.4