Defining project objectives - the key to project success

A project objective is a clear, comprehensive and verifiable description of the target state to be achieved by the project. The project objective usually combines several sub-objectives of different types. All these objectives are clearly defined and elaborated at the beginning of the project and are an integral part of the project plan to guide direction and progress.

DIN 69901-5:2009-1 "Project management - Project management systems - Part 5: Terms" defines the terms "project objective" and "objective definition" under 3.87 and equates them with the English terms "project scope" and "scope definition":

The clear definition of project objectives is one of the fundamental tasks in project management. According to a PMO study by Projectgroup 2020, a lack of precise project objectives significantly increases the risk of project failure due to a lack of clear direction and a uniform understanding.

Despite its fundamental importance, many clients and project managers experience difficulties in formulating a clear project objective. Unlike deliverables, deadlines and resources, which can be clearly stated, project objectives represent a desired state - often characterized by vague ideas. The art of formulating objectives lies in expressing these ideas in concrete terms.

A well-formulated project objective is characterized by the fact that its fulfillment can be clearly verified and that all persons involved find themselves reflected in the formulation. A successful objective formulation describes the desired state precisely and concisely in order to minimize the scope for different interpretations.

The definition of project objectives is useful for various reasons

In summary, clearly defined project objectives help to ensure that a project is carried out effectively, efficiently and successfully. They create a clear structure and orientation for everyone involved. These principles reflect the SMART method, which provides a clear structure for formulating objectives.

In project management, five functions of objectives can be recognized, viewing objectives not just as endpoints but as living tools that permeate the entire project life cycle.

In principle, the number of possible types of objectives that can be relevant for a project is almost unlimited and highly individual. In practice, however, it has proven useful to define a few specific types of objectives.

Project objective / overall objective / main objective / global objective

This is the overarching goal that guides the entire project. It defines what is to be achieved with the project and sets the framework for all activities.

Sub-objectives

These objectives are more specific and relate to certain phases, tasks or milestones within the project. They contribute to the achievement of the overall objectives. Each sub-goal or sub-objective can be further subdivided and specified by further sub-sub-objectives or specific target classes. The most practical target classes are as follows.

Performance objectives

They focus on the effectiveness, efficiency and efficacyof processes or activities. These targets can relate to the quantity of service provided, the use of resources, productivity or other measurable key figures. Performance targets are often quantitative and relate to the quantity or scope of results to be achieved.

Example of a performance target: Increase production capacity by 20% within one year.

Quality objectives

These targets focus on the quality, accuracy or excellence of the results or products. Quality objectives emphasize the fulfillment of certain standards or requirements to ensure that the results achieved meet the desired quality standards. These objectives are often qualitative and concern the characteristics or properties of the results.

Example of a quality objective: Reduce the number of defects in a product by 50%.

Usability objectives / benefit objectives

Objectives that relate to expectations regarding the use of a product, system or service. These objectives describe how users should use the solution in question and what benefits or experiences they expect to gain. Usability objectives are particularly important in the area of product design, software development and the design of services.

Example of an usability objective: Reducing the loading time of a website in order to increase user-friendliness and user interaction.

Deadline targets / time targets

Deadline or time targets are defined time targets for specific milestones or the overall project. They help to define and control the time frame for implementation.

Example of a deadline target: Completion of software development by March 31, 2024.

Cost targets

Targets that relate to the budget and financial resources of the project. They define the financial requirements and restrictions.

Example of a cost target: Limiting the total costs for a construction project to 2 million euros.

Social objectives

Objectives relating to social aspects and relationships. These objectives focus on the well-being of the people involved in or affected by the project and on creating a positive social impact. Social objectives are particularly important to promote a healthy and productive working environment and to strengthen relationships with stakeholders.

Example of a social objective: Introduction of initiatives to promote equal opportunities in the workforce.

Sustainability goals

Goals that relate to environmental or economic sustainability aspects. They may include the integration of environmentally friendly practices or social responsibilities into the project.

Example of a sustainability target: Reduce energy consumption by 20% in the production unit.

Non-objectives / anti-objectives

Non-objectives are exclusion criteria, aspects or conditions that should be deliberately avoided or not achieved. In the context of project management, non-objectives serve to set clear boundaries, specify the objective and avoid misunderstandings. Here are some aspects associated with non-objectives:

Example of a non-objective: not introducing a specific function to limit the scope of the project.

There are different approaches to formulating and defining a project objective. The magic triangle in project management distinguishes between the three target factors of time, cost and performance. In many projects, these factors are essential for the development of objectives by defining cost, performance and deadline targets. Particularly at the start of projects, the objectives can be easily determined and set based on these three parameters.

The project objective therefore comprises the achievement of a desired state (performance objective) by a certain end date (time objective or deadline objective) with a certain use of resources (resource objective or cost objective).

There are also general criteria that should be taken into account when formulating a project objective:

In practice, a five-step process for defining objectives has proven successful:

Step 1: Identify objectives

Project objectives are not always clear. A project idea or a customer order alone is often not enough. There are less obvious factors such as unclear client requirements, overarching company objectives, influences from the project environment such as legal regulations and individual stakeholder objectives. It is advisable to proceed as a team and use methods such as the target cross or the Devil’s Quadrangle.

The best approach for defining project objectives is the SMART method. The SMART criteria state that objectives should be specific, measurable, achievable, realistic and time-bound. These objectives can be defined effectively if rough objectives already exist and are now to be planned in more detail. The clear definition according to the SMART formula offers the advantage of facilitating communication within the project team and preventing misunderstandings.

 Specific: The objective is described concretely and in detail.

 Measurable: The objective can be assessed both qualitatively and quantitatively.

 Executable: The objective is appropriate, attractive and motivating for all stakeholders.

 Realistic: The objective can be achieved within the specified time with the available resources.

 Scheduled: The objectivecan be implemented at a specific point in time.

Using the SMART method, we operationalize the objectives, i.e. we make them measurable in terms of their content, scope and time frame using key figures. Operationalized objectives serve as concrete instructions for action to implement the targets in practice.

Step 3: Differentiation from non-objectives

Non-objectives are the clear definition of what is NOT to be achieved in the project. They are the opposite of the actual project objectives. The formulation of non-objectives is useful to avoid misunderstandings, to facilitate argumentation in later discussions and to clearly define what will and will not be considered within the project.

Step 4: Prioritizing project objectives

Clear objectives are the key to success in any project. But what happens if there are time constraints or a lack of resources? This is where prioritization comes into play. Clarifying the importance of your objectives helps you to make the right decisions in critical project situations. We differentiate between must-objectives (decisive for the success of the project), should-objectives (influence satisfaction) and can-objectives (additional bonuses). We clearly distinguish these from non-objectives.

Prioritize your objectives to increase the success of your project. Try it out and give yourself a clear advantage for your next project!

1. Objective identity (=): These are identical objectives that differ only in their formulation. Solution approach: Both objectives merge into one.
    
2. Objective complementarity (+): Objectives that positively influence each other are complementary. This is the ideal situation for project managers. It is important to use the synergies between the two objectives as an opportunity.
    
3. Objective neutrality (0): Objectives that do not influence each other are neutral. No special measures are required here and both objectives can be implemented.
    
4. Competing objectives (-): Competing objectives that interfere with each other can become a problem. Solution: Negotiate with stakeholders or make a clear prioritization. If you have to pursue competing objectives, include them in your risk management!
    
5. Objective antinomy (≠): Incompatible objectives that need to be corrected behave antinomically. Solution: Do not start the project with such contradictions! Eliminate one of the objectives and deliberately place it "out of scope" or migrate it to another project.

The objective tree or objective hierarchy graphic is a visual representation of the hierarchy of objectives within a system or project. This graphic shows the different levels of objectives and their relationships to each other. Typically, hierarchical structures such as in a work breakdown structure are used to show main objectives, sub-objectives and their connections.

With the help of the objective tree, solutions for possible conflicts of objectives with stakeholders can be found in advance. This lays an important foundation for the success of the project, especially if the objectives are unclear, conflicting or difficult to achieve.

• Order clarification: Clarification of orders with clients, customers and sponsors of the project.
• Teamwork and stakeholder interaction: Clarification or communication of the hierarchy and dependencies of the objectives within the project team and with other stakeholders.
• Identification of deviations: Identification of deviations between the desired target state and reality. This serves as a starting point for a root cause analysis of the deviations.
• Agreement on objectives at management level: Achieving agreement on objectives and objective hierarchy in the management of an organization.
• Personal life goals: Developing personal life objectives and their priorities.

• Clarity and agreement on objectives: Transparent hierarchy and interrelationships of a system's objectives.
• Risk reduction in the event of conflicting objectives: Early detection and resolution of potential objective conflicts.
• Documented objectives: Structured and documented objectives as a basis for subsequent decisions.
• Forced discussions: The predefined logical structure promotes discussions about main objectives, cause-effect relationships and decision-making processes.
• Graphical representation: Intuitive grasp of objectives at a glance, makes it easier to remember them.
• Achieved transparency: The transparency of the objectives promotes discussions about the hierarchy of objectives.
• Focus on what is important: Team and organization can concentrate on what is really important without getting lost in numerous difficulties and problems.
• Resolution of conflicting objectives: Conflicting objectives can be easily resolved by combining the objective tree and conflict cloud.

1. Capture and structure project objectives: Users can define detailed project objectives, both overall objectives and sub-objectives. Structuring enables a clear hierarchy and organization of objectives, which improves project planning.
    
2. Capture objectives' details: Users can capture comprehensive information about each project objective, including objective description, operationalized objectives and measurement criteria. This facilitates a precise definition and understanding of project objectives.
    
3. Categorization and prioritization of objectives: Project objectives can be categorized according to different categories such as cost objectives or deadline objectives. The prioritization with different colors enables a visual differentiation and focus on particularly important objectives.
    
4. Scheduling and monitoring: Users can set a date by which each objective should be achieved. The ability to filter by target date makes it easier to monitor and manage project targets over time.
    
5. Measurability and evaluation of target achievement: The specification of target achievement as a percentage enables a quantitative evaluation of progress. Operationalized objectives and measurement criteria help to objectively measure and evaluate objective achievement.
    
6. Efficient editing of project objectives: Users can edit existing project objectives and add new objectives, allowing flexibility to adapt to changing project requirements. The ability to add multiple sub-objectives at once facilitates the quick definition of detailed objective structures.
    
7. Graphical representation of the objectives​​​​​​​ structure: The objectives view provides a graphical representation of the objective structure, enabling intuitive visualization and analysis. The colour coding of priorities improves the visual recording and prioritization of project objectives.

Projektron BCS gives you and your team the tools to effectively define, efficiently monitor and multidimensionally analyze your project objectives. You benefit from better planning, execution and evaluation of your projects.

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The definition of clear project objectives forms the foundation for a successful project process. It creates a uniform focus, enables efficient use of resources and serves as a benchmark for project success. Clear project objectives promote the motivation of the team, facilitate communication and improve the controllability of the project.

The variety of project objectives enables comprehensive control, while methods such as the magic triangle and the objective hierarchy chart help to grasp complex relationships and resolve conflicting objectives. In summary, well-defined project objectives play a key role in ensuring that a project is carried out effectively, efficiently and successfully.