How to determine objectives in 3 easy steps 1

How to determine objectives in 3 easy steps

This post describes how to determine objectives for developing capabilities.

Seven sorts of knowledge constitute the foundation of organisational capabilities. Such capabilities usually do not come naturally. This post explains how to determine objectives for developing organisational capabilities.

Steps to determine objectives

Suppose that you want to develop a certain organizational capability. How can you determine an objective for this? You can do this in three steps.

Advantage

Define which advantage the capability brings.

Direction

Define a course of action for developing the capability.

Priority

Define the importance and urgency of developing the capability.

Advantage

You can perform a VRIO analysis to identify the advantage an organizational ability brings. This allows you to find out four relevant properties. These properties are:

Valuable

Able to exploit opportunities and defend against threats.

Rare

Scarce and difficult to acquire.

Inimitable

Hard to copy or substitute.

Organized

Set up to capitalize on resources.

Direction

Determine a course of action for developing an organizational capability as follows:

Produce

If it is valuable but non-existent (in your organization).

Refine

If it is existent and valuable, but not rare.

Integrate

If it is existent, valuable, and rare, but not inimitable.

Support

If it is existent, valuable, rare, and inimitable, but not organized.

Maintain

If it is existent, valuable, rare, inimitable, and organized.

Priority

Determine a priority for developing a given ability as follows:

Do

If its development is urgent and requires your personal attention.

Plan

If its development is less urgent but requires your personal attention.

Delegate

If its development is urgent but does not require your personal attention.

Eliminate

If its development is less urgent and does not require your personal attention.