Goal Setting Systems
In a goal setting process, the goals and objectives for the business, departments, teams, and individual goals are consecutively formed and diverted typically using the top-down / bottom-up-process in discussions with leading executives and employees. At an appointed time during the year the accomplishments made (or lack of) in efforts to reach the set goals and objectives shall be reviewed using defined criteria so that early-on support and correction can be given as needed. When demanding but realistic goals have been clearly communicated and mutually agreed upon, then the motivation and goal-oriented activities of the individuals are strengthened. With a well functioning and harmonious goal-agreement system the performance of departments and teams can be increased by 10 - 20%. Where applicable, this increase can be accomplished in combination with variable performance based rewards – with the condition that senior management applies the instrument in accordance to the mutually set goals and avoids distributing premiums and other bonuses collectively or according to personal discretion.
Goal-agreement systems are only effective if they are understood and accepted by all parties involved, that requires early inclusion and participation of executives, works council and employees; as well as consultation of all executives in derivation and agreement of single quantitative and qualitative goals.
We support you with the conception of the goal-agreement system. Furthermore, we support you with input regarding goal definition and the measure of criteria for different functional groups, with the training of executives, down to the establishment of parameters for success and the controlling of the complete process.
- Tangible increase of performance
- Individual goals and department goals support the attainment of business goals, the contribution of each person becomes clearer
- An objective performance assessment is possible. Employees also receive a guideline for determining their own performance ability.
- Higher satisfaction and higher motivation through participation in the goal-finding process, possibility of self-guidance and success experience on the way of reaching the goal
Primary Application Situation
This is an important instrument in performance management. It requires clear management organization. A well established goal setting system pays off quickly.