When breaking department goals down and allocating portions of them to different teams, you can take an approach of overallocating the goal. This means when you add up all the sub-team goals, they amount to more than the department goal. This approach can improve your chances of hitting your department goal, but it can also put unnecessary pressure on your teams to deliver more than they really have to.
- When you're breaking department goals down…and allocating portions of that goal to different teams,…you can take an approach…that's known as overallocating the goal.…This means, when you add up all the subteam goals,…they amount to more than the overall department goal.…This approach can improve your chances…of hitting your high-level department goal,…but this approach can also put unnecessary pressure…on your teams to deliver more than they have to.…I saw one division that had a $200 million revenue goal.…
They had five regions.…Each region was given a goal of $42 million of revenue.…When you add that up, that $210 million.…Within those regions, they overallocated too.…Each branch in the region got goals…that totaled up across the division to $215 million.…Then, in the branches,…they actually overallocated to their salespeople.…The individual sales reps' goals were added up,…and that came to $220 million,…so they were 10% over…what their commit goal of $200 million was.…
The behavior that resulted was…some sales reps exceeded their individual goals.…
- Set corporate and business unit goals.
- Define driver metrics.
- Explain the concept of supporting goals.
- Identify benefits of tying goals to strategy and incentives.
- List ways to troubleshoot and communicate goals.
- Describe how to hold others accountable and avoid pitfalls.