Definition
The strategic deployment requires multifunctional collaboration, significant organizational changes and significant competitive advantages, and goals that pose major organizational challenges.
In detail
Breakthrough Objectives are goals in strategy deployment that require multi-functional collaboration, bring about significant organizational change and distinct competitive advantage, and pose a major challenge to the organization. In the strategic management system, they address the problem that "daily improvements cannot achieve leapfrog development," by setting highly challenging goals to stimulate organizational potential and concentrate resources. Unlike ordinary KPIs, breakthrough objectives are typically cross-departmental, long-term (3-5 years), and require innovative methods. Typical outputs include a list of breakthrough objectives, X-matrix, bowling chart, and supporting action plans.
Example in practice
A traditional manufacturing company faced declining profit margins and decided to set Breakthrough Objectives: raise the share of revenue from new products from 15% to 40% within three years. This required collaboration across R&D, production, and marketing. Through Policy Deployment, the company broke the goal down into annual Improvement Priorities and allocated dedicated resources. Departments aligned their actions on the X-matrix and tracked progress monthly with a Bowling Chart. After two years of effort, the new-product share reached 35%. Although it did not fully meet the target, it had significantly changed the business structure and strengthened competitiveness.