Having set a strategic direction for the organisation with four objectives for the next 3 years, the next step was to determine how far we should advance during 2018. The questions we asked ourselves as a leadership group were:
What does a successful year look like? and
What are some of the must-wins?
Answering the above two questions isn’t as straight forward as you’d think. How does one know and measure if we have a culture of innovation?
So here are our goals for 2018 against the four strategic objectives:
Innovation → Measure the number of innovative ideas submitted and implemented on a monthly basis
Product(s) → Be design-ready with our own product, and have a ready-made product ready to take to the Australian market
Sales Growth → Increase our revenue by 20%
Efficient Manufacturing → Develop a new factory layout; implement a new ERP system, update existing processes and upskill staff
Once we set goals towards each strategic objective, the next step was to define the same by department.
What does each department need to do and achieve for the 2018 goals to be realised?
Each department manager worked with their teams to come up with their (department) objectives and plan. We ended up with a Sales plan, an Operations plan, a Quality plan, an Innovations plan, an HR plan, Finance plan and OH&S plan, each with individual goals that had to tick off at least one of the four strategic objectives and provide at least a financial, social or environmental benefit. Each goal had to have a set of action(s) with a KPI and timelines.
After the departmental plans were finalised, the next step was to determine each individual employee’s role in making the year a success. This was done at the first performance management review (PMR) for the year, which included setting individual goals and tasks (contributing to the department objectives).
Ultimately the sum of the employees’ actions should result in the achievement of the organisation’s goals, which in the end ensures progress is made against the four strategic objectives for 2020.