How to Write IMPACTFUL Strategic Objectives

Your organization’s “strategic objectives” (sometimes referred to as “goals”) are statements of what you’re trying to achieve. They make up the key components of your strategy at the highest level, and are vital in the strategic planning process. You can think of them as “stepping stones” between your organizational strategy and your measures (which are used to track the progress of each strategic objective).

The process can be complex. ClearPoint Strategy helps you design, manage, and execute your strategic objectives.

Below, we show you how to create and write out your strategic objectives, with examples along the way. Many of the examples come from nonprofits. So much is written from a for-profit angle that we thought this would help a broader audience.

If you're looking for ways to think about creating your operational goals, check out our article on How To Set Operational Goals.

How to Create Impactful Business Strategic Objectives

1. Choose objectives based on your strategy, not your industry

Sharing an industry doesn’t mean sharing a strategy, so your objectives may differ from others in your industry. For example, financial institutions like Ally or E*Trade rely on customer-focused technology, so their objectives are likely focused on having user-friendly software and developing tools that will help their customers. Financial institutions like Goldman Sachs or Merrill Lynch rely on personal relationships, so their objectives are likely focused on providing excellent customer service or developing personal relationships.

Base your strategic objectives on your strategy, not another organization’s.

ClearPoint Strategy helps you align these priorities with your long-term goals.

2. Consider all four “perspectives” when creating strategic objectives

The Balanced Scorecard has four perspectives: financial, customer, internal processes, and people (learning and growth). If you have 10-15 strategic objectives, they shouldn’t all fall into just one of those perspectives. Spread them (at least somewhat) evenly across the four.

See Also: The 4 Balanced Scorecard Perspectives: An Overview For Managers

3. Follow the “Verb + Adjective + Noun” format

The typical format of a strategic objective is “Verb + Adjective + Noun.” This formula turns each objective into an action statement.

Note that your strategic objectives should describe your strategy, not a generic one. For example, a nonprofit may consider their approach to fundraising and come up with the following objectives:

4. Create “strategic objective statements” that clarify intent

A three- to five-word objective often isn’t enough for people who weren’t in the room when it was decided, or who aren’t on the leadership team. Write objective statements of no more than 2-3 sentences each that clarify the objective’s intent and meaning.
For example, if the objective is “Increase event-driven fundraising,” the objective statement might be:

“We will develop a world-class website that makes it easy for donors to interact with us. We will do this by partnering with an outside web development firm.” The objective statement should describe what the objective means and how it will be accomplished.

5. Follow these guidelines for developing strategic objectives

• You should have no more than 15 objectives in your strategy.
• ‍Objectives should link together as a group in a logical way. For example, you shouldn’t have one objective that states “Develop interpersonal relationships,” and another that states, “Migrate everyone to an online support system.” Those would drive different behaviors. Make sure all your objectives work together to reflect your strategy.
• Every objective must have at least a verb and a noun:
• Good: Improve fundraising.
• Bad: Fundraising.
• Make sure you aren’t including “projects” as objectives.
• Good: Improve communication with donors.
• Bad: Implement CRM.
• Note that customer perspective objectives can be in the “voice of the customer.”
• ‍Example: “Help me find appropriate housing options.”

Examples Of Common Strategic Objectives

Financial

• Diversify donor mix.
• Drive financial stability.
• Improve resource management.
• Demonstrate market returns on endowment.

Customer/Constituent

• “We want affordable healthcare.”
• “We want reliable sources of food.”
• “We want dependable services.”
• Maximize community impact.

Internal Process

• Improve program development process.
• Rationalize programs.
• Develop fundraising options.
• Drive policy changes.
• Improve headquarter productivity.

Learning & Growth

• Improve volunteer leadership capabilities.
• Modernize technology infrastructure.
• Enhance board involvement.
• Drive a performance-focused culture.
• Attract top talent.

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Case Example: Teach For America

Teach For America created a Balanced Scorecard. This case example shows their objectives and strategy at the time. (Note that some of the objectives have been simplified.)

Case Example: Food For The Hungry

This Food for the Hungry case example comes from Paul Niven’s 2008 book, “Balanced Scorecard: Step-by-Step for Government and Nonprofit Agencies.”

How to Get Started

To start writing your strategic objectives, answer these questions.

• Financial: What is your key financial goal?
• Customers: What should your customers say about your organization?
• Internal: What processes are most critical to your success?
• Learning & Growth: What can you focus on to make your employees more effective?

Remember:

• Use the Verb + Adjective + Noun structure.
• Write two- to three-sentence objective statements for each objective.

Strategic objectives prepare people across your organization to talk about your strategy consistently. To manage the strategy, you’ll also need to write out measures and projects.

Turn Your Vision into Actionable Objectives with ClearPoint Strategy Software

See how ClearPoint Strategy can support your strategic objectives and business planning. Schedule your demo now and take the first step toward better strategy execution.

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