What are Goals?

A goal is the desired endpoint that the organisation wants to reach in a long-term or short term. Goals can be very high-level statements, like "Increase Operational Cost" or "Reduce Customer Complaints".

An increased number of large projects fail at meeting the organisation's desired benefits despite delivering as per the expected scope, cost, and time, causing substantial loss to the investors and the organisation. In most cases, the reason for failure is attributed to the absence of a clearly defined organisational goal. A measurable and realistic goal clearly defines what the organisation expects to obtain after implementing a set of projects. 

A goal is made measurable by identifying it with a target benefit value after which identifying the set of projects or program that can contribute towards the goal becomes simple. Thus setting goals is critical because it helps organisations choose portfolios and projects that contribute towards the goal, thereby ensuring successful investment decisions. 

Amplify allows you to define an enterprise-level goal and set a benefit target for the goal. A sub-set of this goal can be assigned to projects that constitute the enterprise-level program. A yearly target benefit value can be set for each project goal to make sure that those projects achieve the defined target. The Goals Dashboard enables the program manager and other stakeholders to monitor and compare the target value set at the enterprise-level with the target benefit achieved by each participating project.

How it works

• The Program Manager creates a goal at enterprise/program level. 
• He then sets a target for the goal. 
• Projects that can contribute towards the goal are selected based on the benefit that they can deliver. 
• Each project can have a goal definition that is a subset of the enterprise-level goal. 
• Benefit classifications that impact the goal are marked in the project goal definition interface and yearly benefit targets defined. 
• Once the benefit begins to deliver, the stakeholders can view and compare the target at the program level with the target achieved at the participating project level. The Dashboard allows them to drill-down to the contributing project dashboard.

Best Practice Implementation

The Mergers and Acquisitions department at  AB&C, Inc targets to reduce the operational expenses by $ 200 million, post the merger with their supplier company and the subsequent organisational restructuring.

Roles Involved

• Mr.Gavin Cooper, the Program Manager for the 'Post Merger Integration' program.
• Ms Bridget Evans, the Project Manager

Defining the Goal within the Post Merger Integration Program

The merger would be profitable only if it creates a profit of $100 million.  Gavin defines 'Reduce Opex by  $100 million' goal within 'Post Merger Integration' program. 

Setting target benefit

The alliance is worthwhile only if he can realise $20 million per year in benefits for the duration of the three-year program. Gavin sets the benefit target as $20 million for the first two years and $60 million for the final year as the merger and restructuring start delivering the actual estimated benefits.

Identifying and associating participating projects

The next step is to identify projects that can collectively deliver $20 million per year for five years. Gavin's selection of projects is based on their benefit value. Once they are identified, Gavin marks their corresponding benefit classifications in the definition interface of 'Reduce Opex by  $22000000 million'. He also sets up additional filters using custom fields to ensure that only the right benefits are chosen by Amplify as contributing benefits. The goal unit is the unit of contributing benefits.

Setting the Reporting Year

Gavin sets the reporting year as the current year which causes the dashboard to show values pertinent to the current year.

Setting a target for the goal

Since Gavin toggled the 'Set a target for this goal' on, the Adjust target tab displays on saving where he enters $20 million as the target for a period of 2 years and $60 million for the final year.