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I recently published an article about getting started with OKRs (objectives and key results). It occurred to me after sharing the article that we often use the terms goals and objectives interchangeably, when they really are different. At first glance, there might not be a big deal with using the words as synonyms. They’re all focused on achievement and results. But then, maybe it is important to differentiate them. Here are the definitions of each with an example:
Objectives are a specific result you’re trying to achieve within a time frame and with available resources. Think of them as the steps you will take to achieve the goal. An example of an organization’s objective might be to “Call all existing customers in Q3 with a special promotion to increase sales.”. For an individual, an objective might be to “Research all relevant HR certifications and register to earn one before the end of the year.”
Goals are an observable and measurable end result having one or more objectives to be achieved. Goals are typically broad in scope versus an objective which is very specific. For example, a goal might be for an organization to “increase profits”. Or an individual might have a goal to “become certified”.
Outcomes are the measurement and evaluation of an activity’s results against their intended or projected results. Outcomes are what you hope to achieve when you accomplish the goal. Using the above examples, the organization’s outcome might be to “increase profit by 50% over last quarter”. That’s what the organization is trying to do. For an individual, the outcome could be “get a new job” or “get a pay increase” as a result of earning a certification.
While I listed the definition to outcomes last, it seems to me that goals become more relevant if the organization is focused on business outcomes first. We spend a lot of time talking with employees about goals – and that’s good. But do we spend time talking with employees about outcomes? Do employees know how their goals not only align with the organization’s goals BUT also with business outcomes?
A key principle of employee engagement is that employees need to see how their work has value. This raises the question – is the “value” we’re talking about the company’s outcomes? Something to consider. I could see it being difficult for employees to understand their work and the value it brings when the organization doesn’t communicate business outcomes.
One of the reasons I was interested in the LinkedIn Learning session on OKRs and this conversation about objectives, goals, and outcomes is because for many organizations this is the time of year when we start conversations about next year’s goals and objectives. We start focusing on budgets. That includes talent management. So, what are the business outcomes for HR? And how can HR use those outcomes to create relevant and valuable goals for the department and HR employees?
I don’t know that I can completely answer these questions for your organization. But I do believe the questions are worth asking. Today’s business landscape is very competitive and that means HR departments will be asked to deliver at higher levels. The way to start creating a high performing HR function is by focusing on business outcomes.
Image captured by Sharlyn Lauby while exploring the streets of New Delhi, India
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