Great managers devise objectives that their employees see as fair and motivating. This requires balancing the needs of the individual with the priorities of the business. Whenever possible, objectives should be co-created using the framework below to ensure that they’re mutually beneficial.

Objectives need to relate to the person’s current role, but the best ones also reflect the longer-term ambitions of the individual - this explains the darkest shading in the framework above. If someone hopes to move into a more senior role, one of their objectives could be tailored to help them develop the skills necessary for promotion.
 
It’s good practise to set no more than four or five objectives, including one hard commercial outcome and one related to the individual’s personal development.

See also 'Setting SMART Objectives'.