How to Set Goals and Objectives

Below we discuss the following aspects of How to Set Goals and Objectives:

• Goals and Objectives in the larger context of Performance Management
• Why managers should bother with Goals and Objectives
• Three Steps on how to Set Goals and Objectives

How to Set Goals and Objectives in the Larger Context of Managing Performance:

Every organization should have an infrastructure for managing employee performance.  Below is a simple model that shows how to Set Goals and Objectives in a broader context:

Goals Versus Objectives:

There are many different definitions of “Goals” and “Objectives”.  Here is how we delineate the two:

• Goals are higher level than objectives
• Goals have longer time frames than objectives
• Objectives are more specific than goals
• Several objectives may contribute toward a single goal.

Why Bother to Set Goals and Objectives

• To Set Goals and Objectives closes the gap between Strategy and Execution.  Goals and objectives are needed to translate high-level strategies into more manageable behaviours that need to occur on a daily basis.
• Without well-written goals and objectives, evaluating performance becomes unnecessarily more difficult.  Goals and objectives translate into tangible actions that are observable and often measureable.
• Setting Goals and Objectives drives focus and alignment through the organization.  When Goals and Objectives are clear, and cascade through an organization, alignment is assured.
• By setting Goals and Objectives, you help define and drive performance.
• Goals and Objectives clarify the employee’s priorities and allow them to allocate their time and resources effectively.

Cascading Goals and Objectives

When you set Goals and Objectives, you need to ensure alignment between different levels of the organization.  Starting at the most basic functions of a company, the Goals and Objectives must contribute or “roll up” to the Goals and Objectives of the next level up in the organization.  In situations where there are many layers, this alignment must be carried on until the very highest level of the organization.

Three Steps to Set Goals and Objectives:

1. Align the organization’s and team goals.  Regardless of where you are in an organization’s hierarchy, you need to look above you, and ensure that you understand those higher-level goals, and ensure your goals will contribute to those.
2. Draft your goals and objectives. After you’ve looked up the hierarchy, sit down with your team and draft your team objectives, and personal goals and objectives accordingly.
3. Meet to discuss and finalize. You need to meet with your boss to discuss and finalize your Goals and Objectives.  You then need to meet with your team to ensure that all Goals and Objectives are fully aligned.

Drafting Clear Goals and Objectives

The SMART acronym is instructional when refining Goals and Objectives:

• Specific: Well written Goals and Objectives state a clear end result.  The objective names the end result, output or intent, so there is no room for misinterpretation.  When writing Goals and Objectives, use concise verbs, such as:
  • “to establish,”
  • “to increase,”
  • “to reduce”
• Measurable:Your Goals and Objectives must be quantifiable in some way.  Some general categories and examples associated with measuring objectives include:
  • Quantity number of units produced, items processed, calls taken, contacts made, etc.
  • Quality number of specs met, percentage error rates, percent waste rates, number of complaints received, accuracy of reports, etc.
  • Cost dollars spent, percentage within budget, dollars spent on overtime, etc.
  • Time in Use percentage of target dates met, number of deadlines met, number of units shipped on time, etc.
• Attainable: there must be a reasonable chance that the objective can be achieved; some people suggest an 80% probability is effective as a motivator.  If you set Goals and Objectives that are too much of a stretch, people won’t take them seriously.
• Relevant: Goals and Objectives must be related directly to the individual’s sphere of influence and key job accountabilities.
• Timebound: states a time frame, target dates, and/or milestones during the year that are expected to be met.

If you struggle with writing performance objectives, here is a formula to get you started:

• I will ( action )
• so that ( outcome ).
• by (     date     )

For example:

I will work with my team to develop performance objectives so that 100% of my direct reports will have documented objectives by January 31.

3 Things to Remember About How to Set Goals and Objectives:

1. Involve your team when establishing Goals and Objectives.  These should not be done in isolation.
2. Meet often to discuss progress.  Do not allow the setting of Goals and Objectives to become an academic exercise that is visited only once per year.
3. Include Business/Operational and Leadership objectives.  Most people establish their business or operational Goals and Objectives, and fail to define Leadership ones.  If you are a leader of other people you need to set Goals and Objectives that pertain to that function.  For example:

a)    The number and quality of one on one meetings

b)    % compliance on performance appraisals

c)    measure of employee development activity

Watch the ‘3-Minute Crash Course’ about How to Set Goals and Objectives (CLICK THE ARROW TO START THE VIDEO):

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