How to set objectives
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The document provides guidance on how to properly set objectives based on research findings. It discusses that objectives should be [1] relevant, [2] comprehensive, [3] explicit, [4] measurable with specifics on amount and timeframe, and [5] challenging yet achievable. It then gives examples of companies that do not adequately articulate measurable objectives and critiques the objectives stated by Levi Strauss for lacking measurability and focusing on strategies rather than ultimate objectives. The document encourages setting the primary objective of a firm to be the best it can be rather than solely focusing on competitors.
How to set objectives
- 1. How to Set Objectives Prepared by J. Scott Armstrong (details on him at jscottarmstrong.com). Please inform Scott about errors and also make suggestions (armstrong@wharton.upenn.edu) Scott has taken these slides from adprin.com, a site that he founded. That site contains interactive versions of these slides, along with linked references, videos, and webcasts, all in PPT and PPTX format that you can download.
- 2. How to set objectives What is an objective? Describe it in 5 specific criteria rather than synonyms such as “mission” or “vision.” When done, see the next slide for a list based on research findings. How does your list compare? Adapted from AdPrin.com
- 3. Setting objectives: Evidence-based approach Objectives should be -- relevant -- comprehensive – explicit – measurable (how much and by when) – challenging yet achievable Such objectives increase motivation and improve performance, as shown by studies involving over 100 different tasks with over 40,000 participants in eight countries using laboratory and field experiments (Locke & Latham 2002). 3
- 4. Do companies articulate their objectives? 68 entries in the print-ad Gold Key Awards were asked to include a statement of objectives. None specified the amount of change or the time period(Hartley & Patti 1988). Of the 29 winners of EFFIES (for “effectiveness”) only 17% of the 167 objectives were measurable (Moriarty 1996). 4
- 5. Are you satisfied with the objectives stated by Levi Strauss for its 501 jeans ad campaign? 1. Maintain and increase brand share, 2. maintain the 501’s price premium, 3. introduce and establish the Pan-American advertising support in Spain, and 4. achieve the above using TV advertising. See the next page for our answers 5
- 6. 1. Maintain and increase brand share, 2. maintain the 501’s price premium, 3. introduce and establish the Pan-American advertising support in Spain, and 4. achieve the above using TV advertising. #1 is not relevant. #2, #3 and #4 are strategies, not objectives. Adapted from AdPrin.com
- 7. Relevant objectives Focus on the ultimate objectives Do not confuse strategies with objectives • To come up with an objective, ask “why?” until the answer is obvious, such as “why increase profits?” (Persuasive Advertising p 15) • To come up with a strategy, ask “how?” 7
- 8. What should be the objectives of firms? (n=170 marketing students) Primary Purpose is to be: % • better than its competitors 29 • the best that it can 71 8
- 9. “What do you believe would be the effects on long-term profitability if a firm has as its primary goal to achieve higher market share?” Survey of 99 marketing faculty: HIGHER 57% UNDECIDED 16% LOWER 27% To learn more, see AdPrin.com 9
- 10. Based on this exercise, write a small application step for yourself, and set a deadline, preferably within one week. If you are working with someone else, share your application plan and the results of your application. • For example, make a relevant, comprehensive, explicit, challenging, achievable, and measurable objective (with a time deadline) for the work you are doing. Adapted from AdPrin.com