Session 3
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ryan anthony manubaySession 3
Uploaded by
ryan anthony manubaySESSION 3
FORMULATION OF STRATEGIC
OBJECTIVES, KEY RESULT AREAS,
ANNUAL DELIVERABLES/MAJOR
FINAL OUTPUTS
Ryan Anthony Manubay, LPT, MAEM
November 27-29, 2024
This seminar workshop focuses on three essential elements of organizational
development: strategic objectives, key result areas (KRAs), and annual deliverables/major
final outputs (MFOs). These components are critical for aligning an organization's mission and
vision with actionable plans and measurable results. Understanding and applying these
concepts ensure that organizations operate efficiently, adapt to changes, and achieve sustained
growth.
Relevance to Organizational Development: Why This Matters:
Strategic objectives, KRAs, and MFOs Participants will learn how to:
are integral parts of a structured approach to
planning and performance management. 1.Create strategic objectives that align with
According to Kaplan and Norton (1996), their organization’s mission and vision.
defining these elements helps organizations
translate their long-term strategy into actionable 2.Define KRAs to focus on priority areas.
goals and track progress effectively. They form
the backbone of performance-based 3.Develop annual deliverables/MFOs that
management systems, fostering accountability translate strategic goals into tangible
and encouraging alignment across all levels of actions.
an organization (Bryson, 2018).
Strategic Objectives
What Is Strategic Objectives?
Strategic objectives are the foundation of effective organizational planning. They are broad, long-term
goals that guide an organization toward fulfilling its mission and vision. These objectives act as a
bridge between the organization's overarching purpose and its day-to-day operations.
Characteristics of Strong Strategic Objectives:
According to Kaplan and Norton (1996), strategic objectives should be:
1.Specific: Clearly define the desired outcome.
2.Measurable: Include quantifiable metrics for tracking progress.
3.Achievable: Be realistic and attainable given current resources and capabilities.
4.Relevant: Align directly with the organization’s mission and vision.
5.Time-Bound: Include a clear timeframe for completion.
Formulating Strategic Objectives
Steps to Create Strategic Objectives
1.Analyze Internal and External Environments:
1. Use tools like SWOT or PESTEL analysis to identify opportunities and
challenges.
2.Align with Vision and Mission:
1. Ensure objectives support the organizational purpose.
3.Set Priorities:
1. Focus on goals that deliver the most value.
Visuals: Flowchart of the objective-setting process.
4
https://venngage.com/templates/diagrams/swot-analysis-template-word-
07c3ce89-e33a-4063-9adb-7b31f97aeb61
Key Result Areas (KRAs)
Key Result Areas (KRAs) represent the essential domains or areas within an
organization where results are critical for achieving strategic objectives. Identifying and
focusing on KRAs ensures that resources, efforts, and attention are directed toward high-
impact areas. According to Kaplan and Norton (2004), KRAs help organizations maintain
alignment between their strategic objectives and operational tasks by clarifying
accountability and performance expectations.
Key Result Areas (KRAs) define the critical areas where successful performance is
essential for the organization's growth.
They: Examples of KRAs:
• Link to strategic objectives.
• - Focus on high-impact areas. • - Customer Satisfaction
• - Guide employees and teams toward goal
achievement. • - Financial Growth
• - Are used as benchmarks for evaluating • - Operational Efficiency
performance.
Annual Deliverables/Major Final Outputs
Annual deliverables and major final outputs are specific,
measurable results expected within a fiscal year.
They:
• - Translate strategic objectives into
Examples:
actionable tasks. • - Annual financial reports
• - Specify time-bound targets. • - Project completion within
• - Focus on resource allocation and budget and timeframe
accountability. • - Employee training
• - Serve as milestones to track programs delivered
progress toward long-term goals.
Annual Deliverables/Major Final Outputs
Annual deliverables are specific outcomes or products that
an organization commits to achieving within a year.
They: Key Characteristics:
• - Translate strategic objectives • - Derived from strategic
into actionable tasks. objectives and KRAs
• - Specify time-bound targets. • - Clearly defined and
• - Focus on resource allocation measurable
and accountability. • - Aligned with available
• - Serve as milestones to track resources and timelines
progress toward long-term goals.
Application and Implementation
• To successfully implement strategic objectives, KRAs, and
deliverables:
• - Assign responsibilities to teams and individuals.
• - Monitor progress through performance indicators.
• - Utilize feedback to refine strategies.
• - Ensure alignment with the organizational mission.
• - Celebrate achievements to motivate employees.
WORKSHOP 1:
CRAFTING OF PESTLE
WORKSHOP 2: CRAFTING OF
SWOT ANALYSIS
Conclusion
• The formulation of strategic objectives, KRAs, and annual
deliverables is critical for organizational success. By aligning
these elements with the organization's vision and mission,
leaders can drive growth, ensure accountability, and achieve
desired outcomes.
• Regular monitoring and evaluation are essential to adapt to
changes and maintain progress.
References
• Kaplan, R. S., & Norton, D. P. (2004). *Strategy maps: Converting intangible
assets into tangible outcomes.* Harvard Business Press.
• Bryson, J. M. (2018). *Strategic planning for public and nonprofit organizations:
A guide to strengthening and sustaining organizational achievement.* Wiley.
• Northouse, P. G. (2021). *Leadership: Theory and practice* (9th ed.). Sage
Publications.
• Cameron, E., & Green, M. (2019). *Making sense of change management: A
complete guide to the models, tools, and techniques of organizational change*.
Kogan Page.
• Kotter, J. P. (2012). *Leading change*. Harvard Business Review Press.
THANK YOU!!!