An approach for setting strategic objectives in business excellence models: a study of nonprofit organizations

Abstract Setting strategic objectives is crucial to organizational performance, as demonstrated by business excellence models (BEMs). However, most of the BEMs literature is silent on the approach through which strategic objectives are set. The aim of this paper is to introduce a simple approach for setting strategic objectives, based on the BEMs perspective. To develop this approach, 12 nonprofit organizations that have adopted BEMs are analyzed, in order to identify their strategic objective-setting approaches. A qualitative methodology is adopted, combining case study, content analysis, and interviews. The research findings identify three types of approaches. Through analyzing the approaches’ advantages and disadvantages, a seven-step process is developed. The paper also provides an analysis of other aspects identified by the organizations when setting strategic objectives, such as the number and type of objectives, planning timeframe, and key result areas. This study contributes to knowledge by proposing a seven-step approach for setting strategic objectives based on the BEMs perspective, and developing a related integrative analytical framework. The study also has a range of implications, especially for managers who are developing strategies and strategic objectives; those adopting BEMs; and those interested in the identification of capacity-building needs, stakeholder engagement, and change management issues in adopting BEMs.