Objective - objectives

Objectives are statements that will have specific outcomes. Objectives can be set at all levels of a company and can build upon one another from lower to higher level corporate functions. They are often set at the corporate level and then each lower business unit creates a set of Objectives to help support and meet the corporate objectives.  Sometimes they are in financial terms, especially at the corporate level. At lower levels in the company they may take many different forms, but must always have some statement(s) focused on financial results.
Objectives are part of the hierarchy of terms which help set and shape the strategy of a business or unit....

Corporate objectives are set by executive management and provide the focus for setting more detailed objectives at each functional level in the business. The corporate objectives relate to the business as a whole. Your objectives will line up with the corporate objective(s) and support it or them, however they will also be specific to your organization.
For example:

Corporate Objectives - Market share percent
Functional Objectives - Sales per customer
Unit Objectives - 5% increase in sales of product y

Objective examples:

1. Create delighted customers
2. Increase revenue to your division by 10K.
3. Decrease cost per unit of (your widget).
4. Increase market share to 51%
5. Bring xyz product to market on Dec. 5th, 2 months before competition
6. Provide learning opportunities to 25% of employees by end of second quarter
7. Have MS SharePoint on line within 90 days
8. Consolidate to three manufacturing locations by 2015
9. Provide new computers to sale force over the next 24 months
10. Hire 10 new engineers by Dec. 1st.
11. Initiate TQM for manufacturing Unit #1 on June 1st.
12. Move to new customer focused corporate office in by end of 3rd quarter
13. Reduce product waste to 10% on Jan.1, 5% on Dec.1, and 3% within 24 months
14. Cut energy consumption on Machine #20 by 5%
15. Increase factory Y's output 2% within 6 months
16. Eliminate waste to landfill by 2016

Lean?

What do you think of when you hear the word lean?  Lean muscle? Lean meat? Lean protein? Lean cuisine? Lean manufacturing? Lean leadership?  Since this is a blog about Visions of Leadership you should have thought of Lean Leadership. A lean body and lean leadership have a lot in common.  Like the guy pictured, this is how you should visualize your business - lean, muscular, agile, strong ethics, handsome.  This picture represents your customer's expectations of your business - value, stability, flexible, integrity, great image.

So let's look at how lean is being applied.

1. What is the meaning of the word lean?
2. What is meant by this term in business?
3. Why is it in use today?
4. Why associate it with leadership?

The word lean has a number of meanings.  It can refer to 'moving toward', as in she is leaning toward this candidate.  It can refer to something which is tilted, like a tree or building is leaning.  However in the case of business processes it seems to refer to thin, sparse, to-the-point, minimum, no waste, only what is needed, pure, like lean muscle!

The word lean would seem to take on the meaning - that only the essential elements are to be considered and utilized, that there is no waste, no fat in the approach to manufacturing processes or recently in terms of leadership.

It has become fashionable today ( and essential to stay competitive)  to think in terms of lean methods, or to adapt many of the processes pioneered in Japan to your business. The lean process used by Toyota Motor Company focused on the customers needs and desires, which in turn required a re-think of how things were manufactured to allow for more variety, lower cost, and fast changeovers. As with everything in life... overindulgence can produce unpredicted outcomes such as Toyota recently faced.  The focus on the customer must be maintained. As Toyota moved from total customer focus to a focus on becoming the largest car manufacturer in the world they missed the point.  By staying focused on the customer they would still have achieved the 'world title' it just may have taken a little longer.  Most car buyers want zero failure, stylish cars that meet their transportation and/or psychological needs. If you provide cars with the customer's need in mind better than any other car manufacturer you will become the the number one car manufacturing company. Toyota only went a little bit astray but it cost them billions to correct.

The lean concept has moved from the manufacturing process to the management/leadership process over the years due to the need for a new kind of leadership approach to business.  Lean manufacturing requires 'out-of-the-box' thinking to be successful.  It requires managers with special skills to see and effectively lead  a lean organization's ongoing changes needed to stay competitive. Lean in terms of leadership refers to a focus on the key elements of personnel styles, traits, and needs to effectively motivate personnel and maintain the focus on the company's goals.  It is a - 'just what is needed'; 'just enough'; 'at just the right time'; and  an 'agile and flexible' approach.  In other words a to-the-point, consistent, and supportive approach to leading.

Look for additional posts that provide more insight into each of the areas outlined here.  Follow this blog to obtain the latest posts on the subjects you need to incorporate lean into your business operations. 

Path to Lean Leadership

Lean Leadership has its foundation in programs that have been developing since the 1960's.   During the late seventies and eighties quality became a corporate priority.  Then during the nineties six sigma methodologies started to be introduced around the world.  The six sigma methodologies were comprised of many other tools from TQM and process management, along with the concept of controlling defects to 6-sigma standards.  Today Lean Leadership is a management process focusing on people utilizing old and new process tools.