Step 3: Convert them into annual objectives

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Step 3: Convert them into annual objectives



These go at the top of the X-Matrix.


Annual objectives answer:

What must happen this year to move the breakthrough objectives forward?


Example:

If the breakthrough objective is to cut lead time by 40% in 3 years, the annual objective might be:


  • Reduce lead time by 12% this year
  • Reduce WIP by 20% this year
  • Convert 2 major value streams to pull scheduling this year



A good annual objective should be:


  • achievable in 12 months
  • outcome-oriented
  • numeric where possible
  • directly tied to a breakthrough goal



Keep these limited too. Usually 4 to 8 is enough.


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