Module 5:

Goals and objectives

Yi-Chih Yang

Professor, Department of Shipping and

Transportation Management,

National Kaohsiung University of Science and

Technology

Allison James Lecture, Maritime and Logistics Management

University of Tasmania

(Lecture materials were amended based on

2003 cooperation teaching project between

NKMU and AMC)

Outline

5.1 Introduction

• 5.2.1 Goals versus objectives

• 5.2.2 Goals and objectives of organizational levels

• 5.2.3 Subsuming goals under missions

• 5.2.4 Developing realistic objectives

5.2 Goals and objectives

5.3 Conclusion

5.1 Introduction

The analysis of the organization’s strengths and

weaknesses and the development of a mission

statement are only part of the process of strategic

management. The mission statement needs

something to drive it. Together, goals and

objective drive the organization towards the

ultimate fulfillment of its mission.

5.1 Introduction

Briefly, goals are general statements of what the

organization seeks to achieve ; objectives identify

more specific and measurable outcomes that are

necessary to meet these goals. Goals and

objectives in strategic management are the

targets that an organization sets out to achieve.

5.1 Introduction

Objectives are the end results of planned activity. They state

what is to be accomplished by when and should be quantified if

possible. The achievement of corporate objectives should result

in the fulfillment of a corporation's mission. Minnesota Mining&

Manufacturing(3M), for example, has set very specific financial

objectives for itself :

1.To achieve 10%annual growth in earnings per share.

2. To achieve 20%-25%return on equity.

3. To achieve 27%return on capital employee.

5.2 Goals and objectives

In the introduction to this module, we briefly

defined goals as general statements of what the

organization seeks to achieve by way of its

mission ; objectives identify more specific and

measurable outcomes that are necessary to meet

these goals.

Figure1

Mission,

goals and

objectives

5.2.1 Goals versus objectives

5.2.1 Goals versus objectives

Goals are general statements of what we must

do to make our mission come true ; they are

broader in scope and more long term in outlook

than objectives.

Objectives take us right into the realm of

accountability: to achieve each goal we must

specify precisely what it is we must do, for how

long or how frequently, at what level of

performance, and so on.

Top level of the organization

The mission, strategic goals and objectives must

be set at the very top level of the

organization(enterprise and corporate levels for

diversified companies ; combined enterprise,

corporate and business level for single-business

companies.)

5.2.2 Goals and objectives of organizational levels

Business level of a diversified organization

For a diversified company, each business unit

must then develop its own mission, goals and

objectives on the basis of the organization’s

overall mission, goals and objectives.

Functional level of an organization

For any type of company, diversified or not, the

functional areas of a business can also develop

their own mission, goals and objectives. These

must directly support the business’s mission,

goals

Figure2 Developing mission, goals and

objectives according to organizational level

5.2.3 Subsuming goals under missions

Example 1: AYS(At Your Service) Port Authority

Mission:

To prove and manage port resources in a commercial

manner, to meet the needs of port users, to promote

the efficient flow of trade to and from the Port

hinterland and to utilize its resources in ways which

are most beneficial to the community.

5.2.3 Subsuming goals under missions

Goals: Community: be responsive to community expectations

Employees: recruit, develop and maintain a highly

motivated workforce committed to the objectives of the

authority be self sufficient and financially viable

Financial: ensure that the necessary facilities are

provided to enable

Infrastructure: efficient and safe operations

Operation: optimize the use of port facilities and

services

Trade: maximize port trade

5.2.4 Developing realistic objectives

Objectives are refinements of goals; if goals are

incorporated in the mission statement, then we can

say objectives are refinements of the mission.

Objectives provide a basis for monitoring progress

towards the mission( or goals).

Set SMART objectives. SMART is a clever

mnemonic device developed by Blanchard et al

(1987) in their book Leadership and the One

Minute Manager. It means：

5.2.4 Developing realistic objectives

Specific：exactly what is to be achieved?

Measurable：how can it be measured, what standard

performance measures or targets will we use to make

it measurable?

Achievable：what will stretch us and yet still be

attainable or realistic?

Relevant : is it of critical importance? Will it help us

achieve our mission（or goals）?

Traceable：when will it be achieved; what time-frame

will we use or set? How can we track performance ?

5.2.4 Developing realistic objectives

In the maritime industry, strategic objectives are likely

to cover the following areas：

− profitability

− market position

− innovation

− productivity

− physical and financial resources

− public/social responsibility

− manager performance and development

− employee performance and attitude

− international / global competitive position

5.3 Conclusion

Goals are broad statements of what the organization

must achieve to realize its mission. As such, they are

long term in outlook.

Objectives are statements that help guide the activities

of the organization towards the attainment of its goals

（or mission, if goals are part of the mission）.Therefore,

they become the targets against which performance is

measured.

Always set SMART objectives-that is, make them smart,

measurable, achievable, relevant and traceable. Equally,

always evaluate objectives according to this same set of

criteria.

• OOCL has 4 core values that are central

to everything the company does. The core

values are:

People, People, PeopleCustomer

FocusExcellence Through

QualityCommunity Responsibility

Evergreen shipping line

• Our Vision

• "We will not wait for legislation to be

introduced. We will use the latest

technology as soon as it is available so as

to minimize the impact of container

shipping operations both on marine life, on

port communities and on humanity

worldwide."

PSA international

• Our Mission

• To be the port operator of choice in the

world’s gateway hubs, renowned for best-

in-class services and successful

partnerships.

DP world

• OUR VISION

• To Lead the Future of World Trade.

• OUR PURPOSE

• To Add Value, Think Ahead and Build a

Legacy.

• Our Values

• Committed to Excellence

We set new standards by continuously improving results

and innovating in every aspect of our business.

• Dedicated to Customers

We help our customers, external and internal, succeed

by anticipating and meeting their needs.

• Focused on People

We win as a team by respecting, nurturing and

supporting one another.

• Integrated Globally

We build our strength globally by embracing diversity

and optimising operations locally.

China COSCO shipping

• Corporate vision:

• undertake the mission of globalizing Chinese

economy, consolidate advantageous resources,

take global shipping, integrated logistics, and

shipping related financial services as core

business while diversified industrial clusters

grow together, so as to build a world-leading

business that provides integrated logistics and

supply chain services.

Thank for your Attention

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