In summary the mission statement, or mission and statement of strategic
intent, operate as a guiding light that acts as a reference point when making
strategic decisions in general and when forming objectives in particular.■ Goals and objectives
The mission statement acts as a guide and leads to the development of a
hierarchy of objectives. Objectives are the specific intended outcomes of
strategy. There are differing views on the definition of goals and object-
ives. Some writers see goals as being less specific than objectives. Strategic
goals are general aspirations that the organisation needs to achieve but are
difficult to measure or put within a specific time scale. Objectives there-
fore are more specific than goals and state what is to be achieved; they are
given a quantifiable measure and a specific time scale. These objectives
are seen as needing to be:
● Specific: Objectives that are specific should be set so that there is clarity
throughout the organisation as to what is to be achieved.
● Measurable: Objectives that are stated clearly, with tangible targets,
what is to be achieved. Objectives can then be measured overtime.
● Aspirational: Objectives that are set at a level that provides a high-
enough challenge to motivate individuals although not so high that it
demoralises them. Different groups or functions will have various per-
ceptions of the level of challenge set by the objectives. One way to
address this problem is to set distinct objectives for each specific group.
● Realistic: Objectives that are achievable based on a thorough strategic
analysis. Companies can fall into the trap of developing objectives that
reflect an unrealistic, but desired for, position that does not reflect the
current reality of their situation.
● Time scaled: A time scale should be put on the achievement of an object-
ive. This again allows the organisation to measure their performance
against a set deadline.
These quantifiable objectives are normally referred to by their acronym
SMART. Examples of SMART objectives are 3 M’s financial objectives.140 Strategic Marketing: Planning and Control● To achieve 10 per cent annual growth in earnings per share.
● To achieve 20–25 per cent return on equity.
● To achieve 27 per cent return on capital employed.
Source: Wheelen and Hunger, 1998.