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ACCA Strategic Professional · Strategic Business Leader · Concepts of strategy

Karela Telecom has a mission statement: 'We connect communities through reliable, affordable communications.' The board now wants to turn it into something managers can use to judge performance. Which of the following objectives is best aligned with the mission AND meets the SMART criteria?

Raising rural network availability from 94% to 98% within 24 months is correct. It is specific, measurable and time-bound, and it directly supports the mission of reliable communications for communities, unlike the other options, which are vague, aspirational or lack a target and deadline.

  1. ABe the best-loved telecom brand in the country
  2. BRaise network availability in rural districts from 94% to 98% within 24 monthsCorrect
  3. CIncrease shareholder value as much as possible in the long term
  4. DImprove customer service across all divisions

Explanation

Only the rural availability objective is specific, measurable (94% to 98%), time-bound (24 months) and links to the mission's 'reliable' communications for communities. The 'best-loved' brand option is aspirational and unmeasured. Maximising shareholder value has no target or deadline, and improving service is vague and not measurable.

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