Chapter 8. The Plan Objectives, Strategies & Tactics. A goal is not always meant to be reached, it often serves simply as something to aim at.

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1 Chapter 8 The Plan Objectives, Strategies & Tactics A goal is not always meant to be reached, it often serves simply as something to aim at. ~Bruce Lee Objectives O bjectives answer the question: What do we want? More specifically, objectives are end states that can be achieved within a set timeframe with the resources available. While it is worthwhile to understand what an objective is, it is more important to understand why objectives are important in the marketing planning process. Essentially, objectives are important because they are the foundation of our planning and strategic activities. They form the basis for policy creation. Having resolved what objectives are and why they are important in creating our marketing plan, we next need to give consideration to SMART objectives. A SMART objective is simply a better defined standard objective: it provides more detail concerning the objective, which results in clearer guidance and more readily measurable results. 89

2 Think, Plan, Prosper The SMART acronym stands for: specific, measurable, attainable, relevant and time-bound. The idea in developing a SMART objective is to ensure that it meets these requirements. To be more specific, the acronym dictates that objectives be constructed as follows: Specific The demand for specific objectives seeks to avoid the situation created whereby an objective is too general in nature to be useful. If an objective is not specific, then implementation becomes more difficult, and the chance of obtaining the objective is greatly reduced. Measurable If you cannot measure an objective, then you have no way of knowing if you have achieved it. Attainable If an objective is not attainable, then those tasked with meeting it will become demotivated and cease to be concerned about meeting it. Relevant Relevance goes to the importance of an objective. If an objective holds no value, then what is the point of working to achieve it? Time-Bound Almost any objective can be achieved given an infinite amount of time to do so. Establishing a time-frame for completion of the objective serves to validate the objective. 90

3 The Plan: Objectives, Strategies & Tactics The following table provides further detail on SMART objectives: SMART OBJECTIVES Specific An objective must be specific in nature as opposed to a general one. Creating specific objectives requires clear language that rejects the use of jargon or clichés. By being specific, you provide clear guidance as to what must be achieved. Questions to consider: What? What do I want to accomplish? Where? Identify a location. Which? Identify requirements and constraints. Who? Who is involved? Why? Specific reasons, purpose or benefits of accomplishing the goal. Measurable By insisting that an objective be measurable, we are also insisting that movement towards the attainment of the objective is possible. If we cannot measure movement towards the objective, then we will never be able to determine if it has been achieved. Questions to consider: How many? How much? What defines the end state? 91

4 Think, Plan, Prosper Attainable Objectives that cannot be achieved serve no purpose other than to waste resources and demoralize staff. However, objectives that are set too low also serve no purpose. Question: How: How can the goal be accomplished? Relevant Time-Bound Relevance goes to the fact that there is no point in achieving an objective if it is of no importance. For example: the objective for a product manager, "Pull 15 rabbits out of a hat by 3:00 p.m.," may be specific, measurable, attainable and time-bound, but it is definitely not relevant. Relevance is derived from an alignment with the overall corporate direction. Questions to consider: Why does this matter? Does the objective align with overall corporate goals? This component highlights the importance of establishing objectives with a completion date. Timing for objectives must be considered, as there is no point in achieving an objective whose purpose has long ago expired. Question: When can the goal be accomplished? Figure

5 The Plan: Objectives, Strategies & Tactics Strategies Strategies answer the question: How will we get what we want?" They also describe an approach for attaining objectives. Strategies outline the general approach, as opposed to, specific activities or projects that are tactical in nature. In trying to understand the difference between strategies and tactics, we can look at the following example: Strategy Increase the volume of a yoga studio. Tactics Expand the number and type of yoga classes. Design and construct additional yoga rooms. Hire and train necessary staff. Market the expansion to potential customers. Developing Strategies One way to develop strategies is to utilize the TOWS matrix, as seen below: 93

6 Think, Plan, Prosper Figure 8.1 Source: Heinz Weihrich (1982), The TOWS Matrix A Tool for Situational Analysis 1 The TOWS matrix is based upon the work already completed as part of the SWOT analysis. There are strong resemblances between the SWOT and TOWS matrices: both focus on strengths and weaknesses from an internal and external perspective. What the TOWS matrix really does is to provide a structured way to think about creating new strategies. To use the TOWS matrix to generate potential strategies, you must first input the appropriate contents of your SWOT analysis into a section of the TOWS matrix. For example: the S/O section of the TOWS matrix requires you to input the strengths and opportunities uncovered in your SWOT analysis. The next step is to create strategies that take advantage of 94

7 The Plan: Objectives, Strategies & Tactics your strengths in order to pursue the opportunities identified. Continuing this same approach for each section of the TOWS matrix results in strategies being developed based on each quadrant of the TOWS matrix. Using the TOWS matrix in the manner described results in strategies that are both offensive and defensive in nature, e.g., they seek to reduce threats and take advantage of opportunities. Action Items: 1. Develop objectives for the company. 2. Develop strategies to meet the objectives. 3. Develop tactics to achieve the strategies. 95