The majority of the goals you set will be quantitative. Whether they are financial results, operational metrics, customer dynamics, or quality measures, you'll be able to track them fairly easily. That doesn't mean you don't have to be thoughtful about these metrics. A focused set of critical driver metrics is more valuable than a broad set of less relevant metrics your team can't affect.
- When you set goals, there's commonly two types:…quantitative and qualitative.…When you set goals that are quantitative,…they're going to focus on things like financial results,…operational metrics, customer dynamics, or quality.…You can typically track these types of goals pretty easily.…That doesn't mean you don't have to be thoughtful…about these metrics.…A focused set of critical driver metrics is more valuable…than a broad set of less relevant metrics…that your team can't affect.…
Let me share an example.…Let's imagine you have a sales team.…The overall goal for the division is to grow revenue.…Now, the driver metrics…that affect revenue are price and volume.…Now, we're talking about the sales team here.…They have no control over product price.…If you just give this team a revenue goal…for their business unit,…it won't focus their efforts appropriately.…It could lead them to argue…or complain about pricing policy.…That's just not productive.…
The business unit also doesn't control customer service.…Using total revenue for this team's goal isn't fair…
LinkedIn Learning (Lynda.com) is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
- 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.