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Functional Plans and Objectives
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Each function should take this information and determine how it specifically relates to the direction and objectives of the departments and units delivering work products and services It s important to identify user requirements Once these objectives are determined, the functional leaders can focus on identifying the required structure and processes needed to achieve the results Once you ve completed this work, a human resource plan can be developed that identifies the skills, competencies, and staffing levels required to achieve the results The final link is the annual operating budget in terms of fixed annual expenses The rollup of this information allows the financial group to complete the company budget
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Categories of Objectives Maintenance Maintenance objectives (also called operational objectives) are the day-to-day requirements for running a business function
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Improvement Improvement objectives are written each year to implement a process, program, or initiative to improve the operation of the function and delivery of services to both internal and external customers
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Other Initiatives Initiatives will take the form of specific projects that may be cross-functional and will lead to achieving larger-scale, breakthrough progress toward company strategic objectives
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SMART Criteria for Writing Objectives
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The acronym may be overused, but it bears reference here as a standard to measure well-written objectives This is the test that objectives must pass to be effective:
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Specific Stated in precise, not vague terms Objectives are quantified Measurable Measurements are included to provide targets for the objectives Attainable Objectives are realistic but challenging and provide stretch to be attained Relevant Objectives must link to the business and functional objectives Timely Dates for completion are included in the objectives
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Preparing the Functional Plan
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In terms of preparing the functional plan, let s assume that you ve identified your mission and key results areas and then drafted a set of functional objectives Although this work may be considered preliminary, it will provide the backdrop to completing the next steps in the plan The list in the following sidebar of planning principles can be used as a guide
THE PLAN PREPARATION FLOW
Mission P a rt 1 Key Result A reas I Derived from the Business Plan  Completed
FOR EXAMPLE
P a rt 2 Objectives I Maintenance I Improvement I Other P a rt 3 Organization and Human Resource Plans I Link to Annual Budgets P a rt 4 Performance Standards and Measurements Established P a rt 5 H ow Tracked A completed sample plan is available on pages 49 50
Measuring Performance
Organization and Human Resource Planning
On completion of the mission, key results areas, and functional objectives, the next phase is to complete the organization and human resource plans that will provide the final input for the budget There s a tendency to jump from objective setting to budget projects, using the current organization framework It s critical that the organization structure and processes be reviewed every year to then determine the skill and staffing requirements This can be considered a strategic activity because the output will match the human assets requirements to the needs of the organization for any given year This will have a significant impact on the fixed annual budget, so it shouldn t be taken lightly The process to be undertaken flows essentially like this: In organization planning, use the specified key results areas and major objectives to determine the requirements for the future organization necessary to deliver the function or achieve the expected results The goal is to have the right structure in place with the right functionality to do this
Strategies and Business Plan
Functional KRAs and Objectives: Organization Planning
Future Organization (Required Structure and Processes)
Current Organization
Planning Principles I Structure should facilitate the execution of strategy and objectives I Structural design and core process identification will lead to human resource requirements Form follows function and that determines the people side I Flatter structures are desirable because they increase the speed of decision making and enhance the visibility of the function
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