Self doubt and strategic planning
Have you been in a situation where you thought you knew something, but then as you tried to explain it to someone else you realized there were serious gaps in your knowledge or logic?
My book, BIG DECISIONS, 40 disastrous decisions and thousands of research studies tell us how to make a great decision when it really matters, explores the biases, mental traps, and shortcuts that lead us to make bad decisions. I turned to it to understand better why I, a certified, highly experienced so-called “expert” in strategic planning and strategy management, was having trouble explaining a key part of the strategic planning and implementation process.
I was led to doubting the depth of my knowledge this past week as I was working with AI to turn my FastTrack™ Strategic Planning System into a web-based application. The FastTrack™ system is something I have developed and used to help organizations create and implement strategic plans over my 37-year career as a strategy consultant.
It was in writing the introductory text for the Objectives and Key Performance Indicators sections when I realized that I had incomplete knowledge of how to develop organizational objectives and use them in setting KPIs or, perhaps more accurately, at the least I had never really had to explain in depth how the process worked.
Trapped by traps
I was halted in my tracks as I tried to explain what Objectives are versus Strategic Goals, how to derive them, and the role they play in developing Key Performance Indicators, and then to use this knowledge to create the introductory sections and the code to enable non-planners to use the application to develop their organizations’ Objectives and KPIs.
What was I reminded of by referencing my own book? That we are all encumbered by these five (and in other ways by hundreds more!) biases and traps:
Curse of knowledge: As better-informed people, we find it very hard to think about problems from the perspective of lesser-informed people.
Epistemic arrogance: There tends to be a difference between what someone actually knows and how much they think they know. As we learn more, we tend to gain even more confidence in our knowledge and underestimate our uncertainty.
Illusion of explanatory depth: The belief that we can provide a detailed and comprehensive explanation of a topic, when in reality our knowledge is shallower than we initially thought.
Overconfidence effect: Having excessive confidence in our answers to questions. Often, our confidence is higher than the accuracy of our response suggests.
Self deception: A personality trait and an independent mental state combining a conscious motivational false belief and a contradictory unconscious real belief. The process of denying or rationalizing away opposing evidence and logical argument and convincing ourselves of something so we don’t reveal that we know about our deception. Most of us are wired to have an overly positive self image, overestimate the control we have over our lives, and are unreasonably optimistic.
Having thus been chasened, I set out to review what I knew about Ojbectives and Key Performance Indicators, dig in to learn whatever more I could find that seemed relevant and helpful, and then to clearly set down how to create Objectives and KPIs and to work with AI (Gemini 2.5 Pro is my current favorite coding partner) to bring this to life in my web-based app.
Objectives are not goals
Here’s the hierarchy of strategic plan elements as I express it in my FastTrack™ Strategic Planning System (which is based on best planning and implementation practices as expressed currently in the International Association for Strategy Professionals Body of Knowledge 3.0):
Mission and Vision: These give your organization purpose and broad direcion.
Strategic Goals: What you need to achieve in the long term to attain (or at least move closer to) your vision.
Strategies: High-impact activities to pursue over the 3-5 year plan timeline that will meet your goals, and move the organization toward the vision.
Objectives: The key outcomes that indicate you are achieving your goals (stated as achieved results).
Key Performance Indicators: How you will measure progress towards these objectives.
12-Month Action Steps: Specific shorter-term activities and initiatives to implement your strategies.
Thus, Objectives are the key outcomes your organization must achieve to realize your strategic goals and, ultimately, fulfill your vision. They act as a vital bridge, translating your broader goals into more focused statements of achievement. These Objectives then guide the development of your KPIs and form the building blocks of your Strategy Map (Logic Model), which shows how attaining your Objectives will lead to attaining your Strategic Goals and, one hopes, living your vision.
Deriving your objectives
Here’s the process I suggest for setting your organization’s Objectives:
1. Review Context: Carefully consider your organization's Vision, Strategic Goals, and any relevant Strategies. These elements provide the primary inspiration for your Objectives.
2. Derive Key Outcomes: Using this context, ask:
"What absolutely must be true or achieved for these Strategic Goals to be met?"
"What are the most critical results that will demonstrate progress towards the Vision?"
3. Focus on Outcomes, Not Actions: Objectives describe what will be achieved (the desired state), not how it will be done. Example: Instead of "Implement a new outreach program," an objective is "Expanded community engagement."
4. State Objectives as Achieved Results: Write your Objectives as if they are already accomplished. Example: Instead of "To create a welcoming facility," your objective is "A welcoming facility."
5. Aim for Clarity and Impact: Define a focused set of powerful Objectives.
Here are some examples of Objectives from plans that I have been involved in creating:
Organizational/People Focused:
Specific identified roles for volunteers
Cohesive, supportive work culture
Training needs identified
Competent, well-trained people
Employee retention process enhanced.
Organizational structure set
Growing team not reliant on the owner
Operations, Processes, and Procedures Focused:
Streamlined processes for customized delivery
Expanded set of services
A full set of standard operating procedures
Operational policies in place
Technology enabling well-oiled operations
Consistent client experience
Financial Focused:
Five-year financial model.
Robust funding relationships with local businesses
Service mix for achieving profitable growth.
Increased program revenue
Diversified revenue streams
A comprehensive development plan
Current and historical financial reporting providing clarity
Balanced budget not dependent on fund balances
Funds to invest in the business and provide superior returns to ownership and investors.
Customers/Marketing Focused:
Outside marketing expertise engaged.
Sustainable marketing and business development program.
Expanded visibility and shared impact inspiring action
Increased reach through business and organization partnerships
Online marketing attracting clients and volunteers
Known in all relevant County zip codes
Board members and volunteers trained to promote the organization
Effective City communications
Desired client mix and project mix
Strong organizational brand
Setting your KPIs
Once you have your Objectives, you can set up your Key Performance Indicators (KPIs). They are quantifiable measures that help your organization track progress towards achieving its Objectives, Strategic Goals, and, ultimately, its Vision. Think of KPIs as the vital signs or mileposts that tell you if you're on course and how far you have come.
To develop effective KPIs:
1. Review Your Objectives: Each KPI should directly support one of your defined Objectives.
2. Define the KPI Details: For each Objective you want to measure, define one or more KPIs by specifying:
KPI Name: A clear, descriptive name for the measure (e.g., "Monthly New Client Acquisition Rate," "Average Project Completion Time").
Unit of Measure: How the KPI will be quantified (e.g., %, $, Number, Days, Score out of 10).
Target: The specific, desired level of performance you aim to achieve (e.g., "15%", "$50,000", "250 new clients").
Baseline: The historical level, level at the start of the measurement period, or the current performance level before improvements are made. This helps in setting realistic targets and measuring progress.
Benchmark: This is optional. It is a reference point or standard used to compare your organization's performance against others—such as competitors, industry averages, or best-in-class performers (e.g., American Productivity & Quality Center - 15% or lower hospital readmission rate standard; Construction Industry Institute - top-quartile construction firms complete 80% or more of projects on or ahead of schedule.)
Person Responsible: The individual or team accountable for this KPI's performance.
Data Source: Where the data to calculate the KPI will be obtained (e.g., "CRM System," "Financial Statements," "Customer Surveys").
Reporting Frequency: How often the KPI will be tracked and reported (e.g., "Monthly," "Quarterly," "Annually").
3. Focus on What Matters: Don't create too many KPIs. Focus on the critical few that truly indicate success for each Objective. Consider *leading indicators* (which measure activities driving future success) where possible, not just *lagging indicators* (which measure past results).
4. Adopt Your KPIs: These KPIs will form the basis of your implementation dashboard and regular progress reviews, helping you stay on track and make informed decisions.
Here are illustrative examples of KPIs. Actual KPIs should be tailored to your specific Objectives and context.
Example 1: Financial Growth
KPI Name: Annual Revenue Growth
Unit of Measure: %
Target: 15%
Baseline: 10% (Previous Year)
Benchmark: Industry Average 12%
Person Responsible: VP Sales
Data Sources: Accounting System / Sales Reports
Reporting Frequency: Monthly
Example 2: Customer Satisfaction (Service Focus)
KPI Name: Net Promoter Score (NPS)
Unit of Measure: Score (-100 to +100)
Target: +50
Baseline: +40 (starting level)
Benchmark: Industry Top Quartile +45
Person Responsible: VP Cusomter Experience
Data Source: Post-Service Surveys
Reporting Frequency: Quarterly
Example 3: Operational Efficiency (Non-Profit Program)
KPI Name: Program Participant Completion Rate
Unit of Measure: %
Target: 85%
Baseline: 65%
Benchmark: Similar programs average 80%
Person Responsible: Program Manager
Data Source: Program Attendance & Completion Records (CRM)
Reporting Frequency: Per Cohort / Quarterly
Example 4: Staff Development (Internal Focus)
KPI Name: Employee Training Hours per Quarter
Unit of Measure: Hours/Employee
Target: 8 hours
Baseline: 4 hours
Benchmark: 6 hours (Industry Average)
Person Responsible: HR Director
Data Source: HR Training Logs / LMS
Reporting Frequency: Monthly
Give FastTrack™ a try
At this writing the online version of my FastTrack™ Strategic Planning System is still in beta, under development. But even at this stage I think it can be a helpful tool for strategic planning and implementation. You can try it out at no charge (but also at this stage with no guarantees about how it functions) here: https://www.forrestconsult.com/planlens. I welcome any feedback that you might want to offer about this budding tool.
