Objectives and target setting

In this lesson

1. 0:00 Stakeholders and conflicting objectives in NFP organisations
2. 1:49 Setting non-financial objectives for charities and public sector
3. 2:36 Strategic and operational targets for value for money
4. 3:12 Economy, efficiency and effectiveness: the three E's
5. 4:16 Challenges of performance measurement in public sector
6. 6:14 Managing multiple objectives with limited resources
7. 7:42 Benchmarking and league tables for comparison

About this lesson

You'll discover why NFP organisations face unique challenges: multiple stakeholders with conflicting priorities, non-financial strategic objectives, and the difficulty of defining what "value for money" actually means. This directly applies to Performance Management papers where you'll be asked to discuss these challenges in exam questions. The lesson covers the core framework for NFP target setting: the three E's of economy (controlling costs), efficiency (maximising output from inputs), and effectiveness (achieving your goals). You'll learn how to balance financial targets (budgets, cost control) with non-financial measures (exam pass rates, service quality indicators) that reflect your strategic objectives. The video uses practical examples—such as how an NHS waiting time target can be met without genuinely improving healthcare—to show how measurement shapes behaviour and why choosing the right targets matters. You'll also explore the real obstacles NFP organisations face: political interference when governments change policy, the risk that measured areas get prioritised while unmeasured ones are neglected, and the challenge of comparing performance across different organisations. The lesson emphasises why understanding stakeholder needs and setting balanced objectives is essential for effective performance management in the public and voluntary sectors.

Duration: 8m