Operational Objectives

Posted in Operations and Supply Chain Terms, Total Reads: 1263
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Definition: Operational Objectives

Also known as Tactical Objectives, Operational objectives are short term goals whose attainment brings an organization closer to its strategic or long term goals. They specify a clear and measurable outcome of a business operation or process to be achieved over a given period (usually one calendar or fiscal year). They are generally used in the context of Strategic Management and Operational Planning.


Operational objectives highlight specific tasks that need to be incrementally fulfilled in order to move the organization closer to its long-term goal. In doing so, it can be noted that operational objectives are flexible or adaptable to the changing environments and hence, the road to achieve the long-term goals also becomes adaptable.


There are various factors influencing the operational objectives – both internal and external. Corporate objectives, finances of the organization, human resources and marketing issues constitute the internal factors. The external issues include economic environment, competitor efficiency flexibility, technological changes and legal and environmental changes.


Example: Operational objectives can include a wide array of daily, weekly or yearly objectives such as cost and volume targets, quality targets, efficiency and flexibility targets and environmental targets.


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