4.2 Objectives should be stated so that it is clear what proposals are intended to achieve. Objectives may be expressed in general terms so that the range of options to meet them can be considered. The objectives of individual proposals should be consistent with statements of government policy, departmental or agency objectives, departmental Public Service Agreements (PSAs), and wider macro-economic objectives.
4.3 There is usually a hierarchy of outcomes, outputs, and targets that should be clearly set out in an appraisal. Outcomes are the eventual benefits to society that proposals are intended to achieve. Often, objectives will be expressed in terms of the outcomes that are desired. But outcomes sometimes cannot be directly measured, in which case it will often be appropriate to specify outputs, as intermediate steps along the way. Outputs are the results of activities that can be clearly stated or measured and which relate in some way to the outcomes desired.
4.4 Targets can be used to help progress in terms of producing outputs, delivering outcomes, and meeting objectives. Targets should be SMART;
❑ Specific,
❑ Measurable,
❑ Achievable,
❑ Relevant, and,
❑ Time-bound.
BOX 5: SETTING OBJECTIVES AND TARGETS
The following questions may help to set suitable objectives and targets: ❑ What are we trying to achieve? What are our objectives? What would constitute a successful outcome or set of outcomes? ❑ Have similar objectives been set in other contexts that could be adapted? ❑ Are our objectives consistent with strategic aims and objectives as set out, for example, in the department's Public Service Agreements (PSA's)? ❑ Are our objectives defined to reflect outcomes (e.g., improved health, crime reduction or enhanced sustainable economic growth,) rather than the outputs (e.g. operations, prosecutions or job placements), which will be the focus of particular projects? ❑ How might our objectives and outcomes be measured? ❑ Are our objectives defined in such a way that progress toward meeting them can be monitored? ❑ What factors are critical to success? ❑ What SMART targets can we then set? What targets do we need to meet? |
BOX 6: EXAMPLES OF OUTPUTS AND OUTCOMES
Policy area | Outputs | Outcomes |
Job search / Job matching | Number of job seekers assisted. | Value of extra output, or improvement in efficiency of job search |
Development of skills | Number of training places and / or numbers completing training | Value of extra human capital, and / or earnings capacity |
Social outputs: Schools; Health centres | Exam results (schools), People treated (health centres ). | Improvements in human capital (schools); Measures of health gain (health centres). |
Environmental improvement | Hectares of derelict land freed of pollution. | Improvement to the productivity of the land. |
BOX 7: EXAMPLE 'EXPANDING VOCATIONAL TRAINING'
OVERALL POLICY OBJECTIVE 'To address the major skills deficiency in the UK by increasing training to be reflected in the numbers of people holding vocational qualifications'. See Box 4 for the rationale for government intervention. Examples of outcomes, outputs and targets: | ||
Outcomes | Outputs | Targets |
A socially optimal level of training | Human capital as a share of GDP | The number of training places that will be provided by a certain date |
Higher productivity for both trainees and co-workers | Proportion of workforce with vocational training | Reduction in the percentage drop-out rate by a certain date |