Meaning
Planning components establish the intended destination for a collective effort over an extended period. Strategic objectives are the specific, long term goals that an organization sets for itself. They provide a framework for all other decisions and help to align the efforts of different departments.
These goals are usually broad and cover a time scale of several years.
Goal Alignment
Coordination of different teams is easier when everyone is working toward the same strategic objectives. These goals act as a compass for the organization. When a choice must be made, the option that better supports the objectives is chosen.
This prevents different parts of the company from working against each other.
Success Criterion
Progress measurement requires a clear idea of what success looks like. Strategic objectives define the end state that the organization is trying to reach. They are the yardstick by which the performance of the entire company is judged.
Without these goals, there is no way to know if the company is moving in the right direction.
Resource Target
Allocation of money and time follows the priorities set by the objectives. A strategic objective tells the organization where to put its primary resources. This focus is necessary because resources are always limited.
