Goal SettingJanuary 2008

Goal Setting

Why Set Goals?

• Outperform other companies

• Employees Key to our Success

• Pay for Performance model

Goal Setting: Why Set Goals?

Outperform other companies:

An 11-year study of more than 200 companies indicated that in terms of financial and operational measures, companies with performance-enhancing cultures significantly outperformed companies without such cultures.

Goal Setting: Why Set Goals?

Employees - Intangible Assets:

Intangible Assets Key to our Success • In the fast-growing knowledge economy,

organizations rely heavily on their intangible assets to build firm value.

• Because an organization’s output is measured in the services and ideas that employees bring to customers and clients - not by tangible products - performance management, at the individual level, is essential.

Goal Setting: Why Set Goals?

Pay for Performance model

• Provides Accountability for Employees

• Provides Incentive/Motivation

• Challenges Top Talent to reach Stretch Goals

• Best Practices of our Clients & Competitors

Goal Setting: How to Set Clear Goals

S-M-A-R-T Goals

• Specific• Measurable• Attainable• Results-Oriented• Time-Related

S-M-A-R-T Goals

Specific: Goals should be clearly defined, and emphasize outcomes. Specific goals help an employee focus their efforts on:

WHAT am I going to do? WHY is this important to do at this time? HOW am I going to achieve this goal?

S-M-A-R-T Goals

Measurable: If you can't measure it, you can't manage it.

A measurable/quantifiable goal takes the guess work out of determining if a goal is met or not

There are usually several incremental tasks built into a goal that can be used to help gauge success

Establish concrete criteria for measuring progress toward the attainment of each goal you set. When you measure progress, the employee can stay on track and reach target dates required to reach the goal

S-M-A-R-T Goals

Attainable: Goals need to be difficult but realistic so that employees can achieve them most of the time.

The learning curve should not be a vertical slope; the employee should possess the skills needed to perform the work

A realistic goal may push the skills and knowledge of the employee, but it shouldn't break them; too difficult and you set the stage for failure, but too low provides no development

S-M-A-R-T Goals

Results-Oriented: It is essential that what is being measured is the output related to the specific goal.

S-M-A-R-T Goals

Time-Related:

Set a timeframe for the goal Putting an end point on goals gives the employee a clear target to work towards Without a time limit, there's no urgency to start taking action appropriately