Every business needs a robust set of performance targets to drive employees to achieve in the areas critical for success. But targets must be calibrated correctly to deliver the results you want. Before introducing any new target, make sure you’ve answered these seven questions.
Is it specific?
A target is no good if it can’t be clearly understood. The parameters for success must be expressed in unequivocal terms with no room for subjectivity. Left open to interpretation, a target quickly becomes unmanageable and breeds frustration and confusion.
Can it be measured accurately?
The target must be based on something measurable. If there’s no data to derive reports from, how will managers or employees know if it’s being met? Ensure robust measurement mechanisms are in place before any target is launched.
Is it fair?
You leave yourself open to challenge if a target is found to be unfair. Make sure everyone set the target has the same chance of achieving it – otherwise you may be discriminating against a particular group. Always consider the impact on different groups before rolling it out.
Is it meaningful?
A target should align with the core aims of the business and the individual’s objectives. If it doesn’t align directly, question its relevance – employees eventually will. Worse, if it’s at odds with the person’s job description, it makes no sense at all.
Is it achievable?
A target must be achievable or it will be consistently failed – bad for reports and demoralising for staff, especially if a bonus is attached. Equally, it shouldn’t be too easy, or it’s useless as a measure of performance.
Can it be exceeded?
Build in a stretch factor so there’s a way to exceed expectations – otherwise you can’t tell apart those doing the bare minimum from those going the extra mile. The exception is a target with no degrees of achievement, where the options are simply met or not met.
Does it drive desirable behaviours?
Consider the effect the target will have on behaviour. Healthy competition is good, but not at the expense of employee relations or wider objectives. Avoid targets that drive behaviour detrimental to customer service or that carry other negative impacts. Consider these questions and your target will be challenging but achievable, aligned with individual and business objectives, and clear to understand and measure – leaving a workforce who feel inspired and empowered to achieve.