Organizations typically balance two categories of objectives: Change the Organization (CTO) and Run the Organization (RTO). These categories reflect the distinction between innovation and operational continuity.
CTO Objectives:
Focus on creating new value, driving transformation, and improving performance.
Examples include implementing new technologies, expanding into new markets, or launching new products/services.
CTO objectives are forward-looking and involve higher levels of uncertainty and risk.
RTO Objectives:
Focus on preserving existing value, maintaining operational efficiency, and ensuring service levels are met.
Examples include maintaining regulatory compliance, sustaining customer satisfaction, and delivering consistent product quality.
RTO objectives prioritize stability and efficiency over innovation.
Why Option C is Correct:
CTO objectives focus on producing new value and improving performance, while RTO objectives focus on preserving existing value and maintaining service levels.
Why the Other Options Are Incorrect:
A: Both CTO and RTO objectives can have subjective and objective measures.
B: CTO objectives extend beyond change management and involve broader strategic goals. Similarly, RTO objectives apply to more than just operational managers.
D: Both CTO and RTO objectives can involve multiple organizational levels, including the board and front-line managers.
References and Resources:
COSO ERM Framework – Discusses the importance of balancing risk and reward across innovation and operations.
ISO 9001:2015 – Emphasizes maintaining operational consistency while driving continuous improvement.
