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PO1-SCOPE & OBJECTIVES

 
An organization should define the scope and objectives of the program. The scope may encompass the entire organization or some specific business unit or department. The program may address all organizational processes or specific domain areas such as financial, employment or environmental processes. The scope will help determine who should be involved in the planning effort and which organizational elements may be affected by the program.

An organization pursues specific objectives to satisfy stakeholder (shareholder or otherwise) requirements. An organization should strive to make its objectives explicit and measurable. Management should identify both organizational and program objectives. Organizational objectives address the “big picture” of the enterprise and are often categorized as strategic, operational, compliance and reporting objectives. Specific business unit, departmental and functional objectives should cascade from these enterprise objectives.

“Program objectives” detail "what" the program seeks to accomplish. Program objectives should be aligned with the organizational objectives.

Principles
> Scope the program
> Identify relevant stakeholders
> Explicit organizational objectives
> Explicit program objectives that align with organizational objectives
> Cascade objectives to business units, departments and individuals
> Cross-functional team including business operators should define objectives


Business Objectives
  • To ensure that the scope of the program is clearly defined
  • To ensure that the program is aligned with business objectives
  • To ensure that the program can be measured against defined objectives
Considerations
  • The entity's current "level of maturity" in executing and managing the program is relevant to establishing a realistic scope and objectives for the program
  • Events may impose a particular scope: > Legal mandates and deadlines (e.g., Sarbanes Oxley certification provisions) may impose a specific planning scope > Proposed changes to the program resulting from an evaluation or enforcement action may impose a specific planning scope
Critical Success Factors
  • Involvement of a balanced team of leaders from operations, legal, ethics, risk and human resources functions to ensure completeness and organizational alignment
  • Recognition that program excellence is a process requiring incremental milestones and objectives