Goals are set to change behaviors and generate different outcomes. Know what behaviors you expect to change once you set a goal and create incentives. For example, if you change from a revenue goal to a profit goal, do sales people start calling bigger accounts? Do they stop discounting so much? Which behaviors should change and how will you monitor those changes?
- The reason we set goals is to drive different outcomes,…that means behaviors need to change.…You need to know what the current behavior is,…what the preferred behavior should be,…and have the right incentives in place…to make people change to that new behavior.…Explain to people which behaviors should change…and how you're going to monitor those changes.…What new skills do you need to build for your people?…Do you need to train them, coach them,…give them different resources?…What new information or resources will they need…to demonstrate these new behaviors?…If you want to hit your goals, tell people…what the new behaviors are that you expect.…
Only setting the goal without telling them what…the behavioral guidance is, is a recipe for failure.…Make sure they know how they should change the…way they work and reinforce those changes regularly.…There's a consumer package goods…company who had a large sales force.…That sales force was previously given incentives…based on the revenue they generated.…The company was trying to grow,…
Along with providing guidance on how to link individual employee goals to organizational strategy, Mike walks you through the different types of goals, including bottom-up, zero-based, commit, and stretch goals. He also helps you use goals to change behaviors, build new skills among employees, and make goals actionable by using incentives and tying them to specific activities. He concludes with a comprehensive plan for setting and implementing goals, and some tips on dealing with challenges such as conflicting goals.
- Identifying goals and goal types
- Setting SMART goals
- Linking goals to business strategy
- Building goals from the bottom up or top down
- Creating stretch goals
- Outlining activities and resources to help employees achieve goals
- Reviewing and revising goals
- Reconciling conflicting goals