The definition of goals and objectives is the first step in the development of a project and lays the foundations for it, therefore, it is a key task that cannot be taken lightly.
Having clear goals and objectives will allow you to make decisions throughout the project and help you stay focused.
In this article we will share information that will help you to settle down the foundations to improve the chances of success of your project.
1. Formulation of Goals and Objectives.
They should be formulated as follows:
- Using a concrete and simple language.
- They must be measurable, therefore they must be defined based on a metric (measurable variable) and a measure (the value that the metric must take to achieve the objective).
- The fulfillment of the objective must be defined in time, that is, it has to be clearly defined when it is going to be achieved (in a month, in a year, on a date).
Here are some examples:
|
Metrics |
Measure |
Target |
|
Time |
5% |
5% reduction in the time required to dispatch a customer order within 3 months after project implementation. |
|
Income level |
500.000 USD |
Increase the company’s sales by $ 500,000 in the following year of implementation of the CRM software. |
|
Inventory rotation |
5 days |
Reduce inventory rotation by 5 days beginning in the fourth month of project implementation. |
2. Achievement measure of project results through KPIs
Once the defined time for the objectives achievement has been fulfilled, the real values hit for the defined metrics must be measured and determined if there have been variations.
|
Metrics |
Measure |
Target |
Real value |
Variation |
|
Time |
% |
5% reduction in the time required to dispatch a customer order within 3 months after project implementation. |
4% | -1% |
|
Income level |
Thousands of dollars |
Increase the company’s sales by $ 500,000 in the following year of implementation of the CRM software. |
675.000 USD |
+175.000 USD |
|
Inventory rotation |
Days |
Reduce inventory rotation by 5 days beginning in the fourth month of project implementation. |
5 days |
0 days |
Negative variations:
Negative variations show that the objective has not been achieved.
In this case:
- It is necessary to review the root cause for which it has not been encountered and define an action plan to achieve compliance.
- Once the plan has been implemented, it is necessary to measure again the real values achieved by the metrics to verify compliance with the objectives.
- It is specifically important to analyze the causes that explain why it was not achieved, and also document it within the lessons learned from the project in order to define actions that prevent the circumstances or decisions that led to the non-fulfillment of the objectives from being repeated in other projects.
Without Variation:
If there is no variation it means that the objective was met.
Positive variations:
Positive variations show that the target has been exceeded.
In this case:
- As strange as it may seem, if the objectives are exceeded, it is necessary to analyze the cause of this excess. For example, the definition of the objective could have been too conservative and this must be corrected in the future.
- If the reason for the positive variation was not the one previously mentioned, it should be analyzed how this result was achieved and document within the lessons learned from the project all the circumstances or decisions that led to exceeding the objective.
Author: Juan David Castañeda Sánchez
About the Author:
Mr. Castañeda is an Electrical Engineer from the National University of Colombia and a Business Specialist from the ICESI University. He has more than twenty years of experience in structuring, selecting suppliers, contracting and managing projects in public sector entities and private companies in Colombia, Bolivia, Brazil, Ecuador, Panama, Peru and Venezuela.
For more information please email: info@gprycon.com
