This might be a simple one (Again, but there is, unfortunately, a rule of thumb on simple things. They are forgotten very often as they are just so obvious.
Defining objectives is way more important than we think, as they define the direction we take, they also define our decisions, they must be set at several levels, short, mid and long term.
Start from the top
It is very important to start from the top, from the long term objectives (1 to 2 years). Your long term objective is your Strategical Driver,
It is very important, even mandatory, to define measurable objectives. Your objective must be your main KPI. Let’s say you want to reduce your inventory cost by 50%, this is your KPI and your objective.
From this starting point, you have to find shorter milestones (4 to 6 months), the ones
And finally, the short terms objectives (or the quick wins, 2 to 3 weeks)
To sum up:
- Long term Objective : Your Strategical driver (1 to 2 years)
- Mid term Objective : Your Tactical driver (4 to 6 months)
- Short term Objective (or quick wins) : Your Tactical driver (2 to 3 weeks)
It is very important for your to set up the KPIs (Key Performance Indicator) which will drive you to your objectives, they are set to tell you if you are either going to the right direction or not.