How do you feel about setting targets? If the research is accurate, you probably fall into one of two camps. Some people are convinced that targets improve performance by sharpening focus on specific goals that truly matter. There is ample evidence to support this. In fact some researchers have suggested that goal-directed planning (setting targets) stimulates electrical activity in the frontal lobes of our brain and can increase happiness. In the opposite corner are those who believe targets are awash with issues, including stress and demotivation when set overly high, lack of guidance in what to do to achieve them, and most troubling, the possibility of ethical violations in attempts to meet them.
Neither of us is a trained academic in the science of goal-setting behavior, but between us we have over fifty combined years of experience in working with organizations around the globe. That real-world, on the ground, and in the corporate trenches time has demonstrated to us that, when established effectively and fairly, targets can without a doubt boost performance. They do so in many ways, but an emerging benefit, one that is vital in today’s ultra-competitive landscape, is a compelling target’s ability to motivate innovative thinking, often leading to breakthrough results.
Here are a few ideas to create better targets in your organization:
- Make target setting a dialogue
Since your subordinates are ultimately responsible for reaching their targets, they need to have a strong voice in setting them. To set targets that are fair and realistic, invite your subordinates for an open dialogue to discuss targets and measures for achieving them. Be clear and direct in your expectations, but ensure you understand your subordinates’ rationale as well. You must set your perspective aside to truly hear theirs. Be actively present and challenge them to justify their thinking. Active listening and challenging questions such as “What do you need if we should set the target 20% higher?” will help keep your conversations focused and productive. When both parties feel heard and understood, you’re sure to come to a mutually beneficial agreement. - Don’t go in blind
Before you set a target for anything in your business, you must develop insights on what is being measured. If, for example, you’re setting a target on customer satisfaction, it’s imperative that you attempt to understand what drives satisfaction for your customers. Only then can you create a meaningful target. This advice applies to targets reflecting any component of your business. - Create plans for achievement
Related to the suggestion above, before landing on a target, carefully map out what it will take to achieve it. Consider the process changes it may require, customer analysis it necessitates, specific projects or strategic initiatives to achieve it, and so on. Determining the level of effort and resources required to meet a target will assist you in validating its appropriateness.
As Henry Royce, co-founder of the luxury carmaker Rolls Royce, noted, “Strive for perfection in everything you do. Take the best that exists and make it better. When it does not exist, design it.” Challenging targets demand new ways of thinking about problems, and the solutions will often catapult you ahead of your competition.
