2. Performance Planning
2.11 Where does goal setting fit into the performance-planning process? 36
Goal setting is one of the key elements of performance planning. In addition to identifying the key responsibilities of the individual’s job and the competencies or behaviors that the organization expects every- one to display, another critical element is setting appropriate goals for the upcoming year.
When the manager and the subordinate talk about key job respon- sibilities, they are talking about the specific requirements of the posi- tion—the elements that might be included in a job description. But when they discuss goals, they are talking about what the individual will do in addition to simply meeting the job description demands of the position. Setting goals produces several important results:
It forces the identification of critical success factors in the job.
It mobilizes individual and organizational energy.
It forces concentration on highest priority activities.
It increases probability of success.
It generates increases in productivity.
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Thinking about goals forces the individual to think about the job itself.
Why does the company have this job? What should someone who is being paid to do this job accomplish? What are the most important activities that the person holding this job should engage in? These are the questions that everyone should ask regularly; setting goals and ob- jectives forces everyone to do this at least once a year.
Goal setting mobilizes energy. If everyone in the organization is
focused on a small number of important targets, then the energy of the organization is directed toward achieving strategic ends.
If goal setting isn’t a part of the performance management process, then it will be easy to get caught in the activity trap—spending time on activities that don’t generate a lot of return but are done because they’re familiar. If we have set clearly stated and measurable goals and objec- tives, we are less likely to work on low-priority tasks because we will be aware of what our high-priority responsibilities are.
Goal setting increases the probability of success. Setting specific objectives, and determining what it will take for the objective to be considered successfully achieved, tends to eliminate the excuses that are often offered up for failure: I didn’t know I was supposed to do that. Is that important? Why didn’t you tell me so?
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Goal setting directly increases productivity. Research on goal-setting pro- grams has found that companies that introduced systematic goal-setting programs enjoyed an average 39 percent increase in productivity. Interest- ingly, the size of the benefit varied dramatically among the companies, with the key differentiating factor being the amount of management support. In those companies where top management lent strong support to the goal- setting initiative, there was an average 57 percent increase in productivity;
but in those companies where there was little top-management support, the increase was a paltry 6 percent.
2.12 How do I pick the right goals? Where should an individual look to find goals and objectives?
There are several areas that will generate ideas for possible goals:
The organization’s vision and values statement or mission state- ment
Objectives from previous review period Critical job responsibilities
Your boss’s objectives
Division/department plans and strategies
Discussions with colleagues/customers/internal clients Organizational problems and opportunities
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Mission Statement.Too often companies don’t make a clear connec- tion between their mission statement or vision and values and their performance management process. The result is that employees feel that the lofty vision or mission statements are just window dressing and don’t have anything to do with their day-to-day jobs. Cynicism results.
In setting objectives, the first place to look for ideas and inspiration is the organization’s mission statement or vision and values statement.
Reviewing these documents will suggest areas in which objectives can be set that further the company’s overall mission.
Only if employees are held accountable for behaving in the way described by their organization’s vision and values or mission state- ment in their annual performance review, will they understand that the sentiments and attitudes expressed genuinely reflect the belief of their leaders about what is really important.
Objectives from a Previous Review Period.If the individual set objec- tives during a prior performance review discussion, these objectives should be considered for inclusion. And if the last year’s performance review pointed out any areas where improvement or development are necessary, these would be prime targets for setting goals and objectives for the upcoming review period.
Your Boss’s Objectives.Including the results that one’s boss consid- ers to be important among your objectives is not only a wise political move, it also helps ensure organizational alignment of all objectives.
Division/Department Goals. The goals of the individual’s division, department, or work unit may be the most important source of objec- tives. If objectives or strategic plans have been established at a higher level, every individual in that work unit should have objectives that support the overall plan.
Discussions with Customers and Others. Another rich source for finding important objectives is an analysis of the customers the individ- ual serves and the products and services provided to each customer.
Everybody (not just salespeople) has customers. Your boss and your direct reports (if you have supervisory responsibility) will always be customers for your work. If you’re in a staff job, the line managers
you serve are also your customers. Your peers and colleagues may be customers, too.
Start by identifying who all of your customers are. They are the people to whom you provide a product or service. Then analyze what each of your customers expects of you (an easy way to discover what they want of you is to ask them). Then figure out where you could improve your products or services to better support your customers.
Those will be your goals and objectives.
Problems.Finally, look at the places where the organization is expe- riencing problems. Probably every employee of a company can see areas where improvements can be made; where the organization, or department, or job can be more effective. These are obvious sources of objectives.