Home        About         Contact
1

Goals (and Objectives)
An objective is "a result to be achieved" (ISO 55000)

Objectives set the context and direction for an organization’s activities. They are established through the strategic level planning activities of the organization.




Forms of Goals/Objectives
The ISO 55000 standard attaches four notes to the definition of an objective, as follows:

  • They can be strategic, tactical or operational.
  • They can relate to different disciplines (such as financial, health and safety, and environmental goals)
  • They can apply at different levels (such as organization-wide, project, product and process.
  • They can be expressed in other ways, e.g. as an intended outcome, a purpose, an operational criterion, an asset management objective or by the use of other words with similar meaning (e.g. aim, goal, or target).
  • In the context of asset management systems, asset management objectives are set by the organization, consistent with the organizational objectives and asset management policy, to achieve specific measurable results.


Types of Goals 
There are many different types of goals that will need to be established by rganizations. These can be arranged in a variety of ways. The broadest method is to organize the goals into those that are financial and non-financial in nature.
  • Financial Goals – These goals have a specific financial measurement, typically related to operating or capital expenses. An example of a financial goal at Amiable Housing Society: “To increase the replacement reserve fund by 20% over the next three years.”
  • Non-Financial Goals – These goals are focused on measurements that do not directly translate into financial data. An example of a non-financial goal at Amiable Housing Society: “To enhance the organization’s reputation in the local community.”

Goals can be established along themes, such as:

  • Political – These goals are driven by primarily to external factors such as labour laws, tax laws, environmental laws and political stability in the region in which the organization is located. example of a political goal at Amiable Housing Society: “To enhance the organization’s reputation in the local community.”
  • Economic – These types of goals are influenced by external factors such as local interest rates, local inflation rates and internal factors such as staff efficiencies. For example, interest income earned on the organization’s replacement reserve can be optimized by selecting appropriate financial instruments. Example of an economic goal at Amiable Housing Society, “To maximize interest income in the organization’s reserve fund and to ensure adequate cash flow by purchasing the appropriate investment vehicles with timeframes that match the remaining useful life of the assets identified in the capital plan.”
  • Social – These types of goals relate to external factors, such as cultural and community factors, population growth rates, age distributions and staff career attitudes. An example of a social goal at Amiable Housing Society, “To develop a succession plan for senior members of staff who may retire over the next five years.”
  • Technological – These types of goals relate to internal factors such as hardware and software to empower the organization’s team towards improved efficiencies and effectiveness. An example of a technological goal at Amiable Housing Society, “To equip all staff with appropriate technology supported by a central database of all the organization’s asset records.”
  • Legal - These types of goals relate to external factors, such as labour laws and internal factors such as active warranties on some of the assets (eg. new roof with 5-year labour warranty).
  • Environmental - These types of goals relate to external factors, such as global warming and internal factors such as any water features on the site (eg. streams). An example of a legal goal at Amiable Housing Society, “To protect all onsite water sources from pollution from resident’s vehicles.”
Listed below are some of the key types of goals:
  • To achieve improved financial performance
  • To ensure compliance with regulatory requirements
  • To ensure organizational sustainability
  • To improve the organization's efficiencies
  • To improve the organization's outputs
  • To ensure the organization makes informed decisions
  • To manage the organization's risk
  • To ensure the organization is socially responsible
  • To enhance the organization's reputation
  • To reduce lifecycle costs of the organization's assets
  • To transfer knowledge of aging workforce
  • To achieve increased system reliability
Listed below are goals organized into the triple bottom of sustainability.

     A.  Planet - environmental
  • To reduce carbon
  • To reduce waste
  • To reduce water use
  • To maintain healthy ecosystems
  • To increase biodiversity and and natural capital
  • To reduce energy cosumption
  • To promote stewardship
     B.  People - Social and Cultural
  • To develop liveable and vibrant communitiies
  • To celebrate our heritage
  • To protect our people and properties
  • To provice adn support community based leisure opportunities
  • To nurture a mindset of sustainability
      C.  Profit - Economic
  • To achieve fiscal stability and fiscal health
  • To develop livable and vibrant communities
  • To strenghen the economy
  • To invest in effective infrastructure
Listed below are some examples of goals organized into themes.

       A.  To achieve positive effects

      B.   To avoid negative effects:
 


Attributes of Goals & Objectives
Included below is a summary of the S.M.A.R.T.E.R. acronym for writing appropriate goals:
  • Specific – The goals are precise and clear, rather than overly broad or ambiguous. They answer questions like: who is involved, what does the organization/team want to accomplish, where must this be done, when should it be performed
  • Measurable – The goals are quantifiable: in other words, the organization can establish concrete criteria for measuring your progress toward the attainment of each goal you set. Be able to answer questions such as: how much, how many, how will I know when it is accomplished? For example, Amiable Housing Society (AHS) has a set of decision-making criteria that align with each of its goals.
  • Assignable – Achievement of the goal can be designated/delegated to a specific person or team. For example, Amiable Housing Society has a goals matrix that identifies how each goal is assigned to certain individuals in the organization who serve as the champions for the goal.
  • Realistic –The goals meet the common sense test that they require a change in current practices or behavior to be achievable. The organization must accomplish its goals by developing the attitudes, abilities, skills and financial capacity to reach them. For example, Amiable Housing Society has ensured that its top management is committed to achievement of its goals but providing the necessary resources.
  • Time-bound - The goals have an end point that can be found on a calendar. Time frames tied to the organizations deadlines.
  • Ethical – The goals can be traced back to the values (moral principles) of the organization. Inspirational and aspirational factors can only be achieved if the goal is meaningful to the people in the organization. For example, Amiable Housing Society ____
  • Reviewed & Recorded –The goals are reviewed periodically and adjusted as needed to account for changes in the organization’s responsibilities or availability of resources. For example, Amiable Housing Society, has a policy that all goals must be reviewed once a year at the same time that the operating budget is being developed for the next fiscal year.

Listed below are some quotations to help illustrate that goals must be carefully written:

  •  “A goal without a deadline is just a dream” (Antoine de Saint-Exupery)
  • “Keep your goals out of reach but not out of sight”



The Process of Establishing Goals
Included below is a summary of the key steps in establishing the organization's goals and objectives
  • Conduct a PESTLE Analysis (political context, economic context, social context, technological context, legal context, environmental context)
  • Review the inspirational-aspirational hierarchy that precedes goals (values, mission, vision)
  • Conduct a stakeholder Needs Assessment
  • Understand the Context of the Organization
  • Establish S.M.A.R.T.E.R goals (see below)
  • Review and evaluate the goals periodically

The following table provides a summary of some of the factors (external and internal) that may be considered in conducting a PESTLE analysis associated with the development of goals and policies.

P.E.S.T.L.E.

External Factors

Internal Factors

Political

   Labour laws

   Environmental laws

   Community influence over municipal decision making

   etcetera…

   Reputation in the community

   City zoning regulations around the community

   Developer influence around the community

   etcetera…

Economic

   Interest rates

   Inflation rates

   Taxation rates

   Unemployment trends

   Economic growth

   Workforce education/training

   Fuel costs (gas, hydro)

   etcetera…

   Staff efficiencies

   Staff productivity

   Reserve fund status

   Capital projects

   Energy efficient equipment

   Energy consumption

   etcetera…

Social

   Population growth rates

   Demographic trends

   Language barriers

   Community drug use

   etcetera…

   Age of staff/workforce

   Retirement of staff

   Motivation of staff

   etcetera…

Technological

   Software products

   Rate of technological change

   High speed internet access

   Multi-modal transit

   etcetera…

   Hardware for staff

   Software used by staff

   Direct digital controls on HVAC equipment

   Car/vehicle ownership

   etcetera…

Legal

   Labour/Employment laws
Discrimination laws
Environmental laws
Health & safety laws
Consumer Protection laws
etcetera…

   Contracts with 3rd parties

   Lease agreements

   Right of way agreements

   Easement agreements

   Bylaws, rules and regulations

   Active warranties on assets

   etcetera…

Environmental

   Weather conditions

   Climate change

   Local industry pollutants

   Environmental laws

   Proximity to ocean/lakes

   etcetera…

   On site streams

   On site catch basins

   Asbestos in buildings

   Water table

   Hydrology on the site

   Topography of the site

   Endangered species (fauna/flora)

   etcetera…

A PESTLE analysis can sometimes be supplemented with a SWOT Analysis. The following table provides an example of a correlation of the organization’s strengths, weaknesses, opportunities and threats.

 

Amiable Housing Society (AHS)

 

Strengths

Weaknesses

Opportunities

Threats

Political

 

  AHS has a poor reputation in the community from an incident that occurred a few years ago

 

  Four new developments under construction on neighbouring properties

Economic

   The AHS team is well educated and trained

  The reserve fund is low and not adequate for some upcoming projects

  High energy consumption of some assets

   Staff efficiencies/ productivity can be improved

   New energy efficient equipment can be installed to lower gas and electricity costs

  Large capital projects need to be funded over the next few years

  Increased fuel costs are hard on the operating budget

Social

   AHS has well defined job descriptions

  Low motivation of some staff

   Hire a 2nd maintenance manager

  Ageing workforce

Technological

   High speed internet access

  Not all staff is computer savvy

   Direct digital controls on HVAC equipment can be enhanced to reduce operating costs

 

Legal

 

  Not all assets covered under service contracts

 

 

Environmental



  On site streams and catch basins are not protected

 

  Neighbouring industry is causing pollutants

 

3

7

4

4

In the preceding table, Amiable Housing Society has identified three (3) strengths, seven (7) weaknesses, four (4) opportunities and four (4) threats. These need to be converted into a series of goals and policies. The following table provides an example of the relationships between certain goals and policies.

 

Amiable Housing Society (AHS)

 

Goals

Policies

Political

To enhance the organization’s reputation in the local community.

All contracts shall be reviewed by senior management staff

Economic

To maximize interest income in the organization’s reserve fund and to ensure adequate cash flow by purchasing the appropriate investment vehicles

All savings shall be deposited into Guaranteed Investment Certificates (GICs) with maturity timeframes that match the remaining useful life of the assets identified in the capital plan.

Social

To develop a succession plan for senior members of staff who may retire over the next five years.”

All new hires shall undergo the safety training program

Technological

To equip all staff with appropriate technology supported by a central database of all the organization’s asset records

 

Legal

To ensure that the organization is not exposed to undue risk and complies with all regulatory authorities

The organization shall only hire suitably qualified maintenance contractors who have been pre-qualified to demonstrate their competence

Environmental

To protect all onsite water sources from pollution from resident’s vehicles.

All catch basins shall be inspected annually





Goals within the Hierarchical Context
The organization's goals and objectives occupy one of the base layers of the inspirational-and-aspirational hierarchy
Without adequate goals and objectives the organization will encounter difficulties when developing some of the other layers of the aspirational-inspirational hierarchy.





Relationship between Policy & Goals





Management of Goals
Listed below are some techniques to help manage the organization's goals:



Contract Objectives (Example)
Some of the key outcomes of a contracting policy are as follows:
  • To mitigate risk to the organization
  • To help the organization balance supply and demand
  • To help the organization supplements its competencies and capacities.
  • To unlock/create value for the organization
  • To ensure quality in the delivery of services for which the organization is not qualified to deliver itself
  • To manage productivity
  • To ensure compliance with regulatory authorities
The hierarchy of organizational purpose with goals represented as one of the layers
Fig. The hierarchy of organizational purpose with goals represented as one of the layers.


Stakeholder requirements converted into value
Fig. Stakeholder requirements converted into value.


The many benefits of implementing an asset management system in accordance with the requirements of ISO 55001
Fig. There are many benefits to implementing an asset management system in accordance with the requirements of ISO 55001.



ISO 55000 ISO 55001 - It all starts with people
Fig. Goal setting starts with people.


1
Fig. SMART goals help the organization to meet its targets.


Analyzing the words inside ISO 55000/55001 to reveal patterns in the requirements
Fig. Analyzing the approximate 27,0000 words inside ISO 55000/55001 to reveal patterns in the requirements.
A word cloud  indicating the prevalence of the word "objective".


People + Planet + Profit is the triple bottom line of sustainability in ISO 55000 ISO 55001
Fig. People + Planet + Profit is the triple bottom line of sustainability.


Alignment is required between all levels of the organization - such as, from top management to line staff
Fig. Alignment is required between all levels of the organization - such as, from top management to line staff


The journey to asset management maturity may sometimes feel like a maze
Fig. The journey to asset management maturity (including the development of appropriate goals and objectives) may sometimes feel like a maze.


1
Fig. The journey to asset management maturity (Including the development of appropriate goals and objectives) may sometimes feel like a knot that needs to be untied.


Workshops help to elicit qualitative data within the organization
Fig. Workshops are a useful method to gather the organization's knowledge resources to help develop goals and objectives.


Making inevitable trade-offs and finding consensus with different stakeholder groups
Fig. Making inevitable trade-offs and finding consensus with different stakeholder groups.




 I. Care is attempting to target certain projects / goals on the facility
Fig. I. Care is attempting to target certain projects / goals on the facility but must be careful of the "collateral damage" from missing the target.

See also:



(c) Copyright Asset Insights, 2000-2013, All Rights Reserved - "Insight, foresight and oversight of assets"