Goals links :
1. Strategy
2. Financial Results
3. Incentives
Goal-setting principles : SMART
1. Specific : Provides details for behavior or desired outcome
2. Measurable : Report the degree of success
3. Achievable : Motivates people to try
4. Relevant : Obviously tied to the broader corporate goals
5. Time-bound : Enables for better project planning
Quantitative Goals
1. Financial results
2. Operational metrics
3. Customer dynamics
4. Quality
Qualitative Golas
1. Milestones
2. Use case completion
3. User acceptance testing
4. Training completion
Set commit and stretch goals
- Commit : A non-negotiable promise of what will be delivered, Consequences for missing the goal
- Stretch : Something for the team to aspire to, Reward for achievement
Provide a clear strategy to help people understand where their work fits into the broader whole.
What to do when overallocating
1. Do not break the SMART rules
2. Watch for sandbagging
Reality checking goals : Review goals
- Supporting Goals : Review for redundancies
- Dependencies : Review resources
- Take time to review how goals impact one another
Troubleshooting goals
- Look for negative behaviors that may arise based on goals
- Revise the goal or revise the incentives
- Decide what behaviors you want, and structure incentives accordingly
Communicating Goals
- Communication
1. Provide broader strategic context
2. Explain how goals are tied to corporate success
Provide resources to reach goals
- Benefits
1. More control over resources
2. Direct the distribution of resources
- Challenge
1. Obtaining additional resources
2. Improper allocation
Measuring goal performance
- Clearly Define Measurements
1. Metrics
2. Data sources
3. Methods
4. Frequency
- Have specific reasons for measuring?
- Determine the results that will trigger contingency plans.
Revise goals
- Set new goals when priorities change
- When the environment changes, review your goals and make changes as necessary
Holding people accountable
- Assess Missed Goal
1. How much is attributable to the team?
2. How much was beyond their control?
- Be willing to make the tough calls. Hold people accountable accordingly.
Avoid pitfalls
- Not looking at integrated view of all goals
--> Do a thorough goal review
- Not aligning incentives
--> Understand drivers of behavior, Monitor behaviors
- Setting goals too aggressively
--> Set stretch and commit goals, Change goals as necessary
- Not communicating how goals tie to the broader strategy
--> Tie strategic plan communication to goal rollout communication
- Feb 15 Mon 2021 10:09
[Strategic Thinking] Setting Business Unit Goals
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