goal-driven performance management and smart · pdf file · 2012-11-22table of...
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Goal-Driven Performance
Management and SMART Goals
Table of Contents
Disempowering Practices ................................................................................................................................................. 3
Empowering Employees to Achieve Goals .......................................................................................................................... 3
How to Write SMART Objectives ........................................................................................................................................ 4
Types of SMART Objectives ............................................................................................................................................. 4
Format of SMART objectives ........................................................................................................................................... 6
Objective Setting Process .................................................................................................................................................... 6
Company Objective Setting Worksheet .............................................................................................................................. 7
Next Step ....................................................................................................................................................................... 10
Department Objective Setting Worksheet ........................................................................................................................ 11
Next Step ....................................................................................................................................................................... 15
Role Objective Setting Worksheet .................................................................................................................................... 16
Appendix A: Action Verbs ................................................................................................................................................. 21
© TalentAlign IT (2008-2012) 3 TalentAlign IT GDPM and SMART Goal Setting (2)
Goal-driven Performance Management
Goal-driven performance management (GDPM) lends itself ideally as a tool to further an organisation's efforts to
create and sustain an empowered workforce. The primary purpose of GDPM, at the organisational level, is to
orchestrate the talent and energy within an enterprise toward achievement of the organisation's strategic goals. At
the individual level, its purpose is to enable managers and their direct reports to collaborate in setting meaningful
goals, track progress against those goals over time, and evaluate performance. Because GDPM provides a common
structure within which to align and manage the work efforts of everyone within the organisation, it lends itself well to
the challenge of promoting and sustaining management practices that empower the workforce.
Disempowering Practices
Below is a list of “disempowering” practices. How many apply to your organisation?
Assign goals to your employees without mutually agreeing on the goals and their measures
Minimise the significance of goal alignment (or ignore it altogether) so that your employees do not have
a sense of the larger context into which their own efforts fit
Set your employees' goals for whatever is most measurable rather than what is most important
"Over determine" goals by tightly prescribing how your employees are to achieve the expected results in
addition to defining what results are expected
Have very few, if any, interactions with your employees during the year to discuss how things are going
Don't let your employees have access to information about other people's goals -- especially to
information about your own goals.
Discourage your employees from admitting that they are having difficulty with a goal or from asking for
help or coaching assistance
Require periodic status updates but use them only as documentation of performance, ultimately to be
used in a performance evaluation
Empowering Employees to Achieve Goals
What is empowerment and what are the conditions that spawn it? People are empowered when they have the
freedom to act in ways that will achieve important outcomes and when they believe that they are responsible for
results that are meaningful. An organisation that fosters such a work environment will facilitate a sense of
empowerment among the people who work within it.
What are the conditions that can result in a sense of empowerment? People feel empowered when:
they understand how their own work contributes to the larger purposes of the organisation,
they have goals to be achieved and some degree of freedom in choosing how best to achieve them,
they have ways of determining how well they are performing and clear standards against which their achievements
are evaluated, and
they are held accountable for achieving the goals they have agreed to take on.
Empowerment takes hold when there is a minimum of bureaucracy and a great deal of interest in discovering better
ways of doing things, and when managers are supportive and actively coach their employees. At the heart of most
empowering environments is the idea that decisions ought to be made as far from the top of the organisation and as
close to the customer as possible.
Under these conditions, most employees genuinely feel empowered. They are encouraged to seize the initiative
rather than waiting to be told what to do. They make decisions and act with confidence, knowing that they have
made their decisions in accord with corporate values and high-level goals. Employees feel a sense of responsibility
and ownership and are committed to the organisation's success (Employee Engagement). They act independently and
even begin to impose their own standards on their job performance, which are often higher than the standards
suggested by their managers or by the company.
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As a result of having a critical mass of empowered employees, a company can be more agile in navigating its external
environment. It can count on the teamwork of its employees, on people working together in pursuit of a commonly
shared higher purpose. Because employees are not just doing what they are told to do but rather are striving to
achieve clearly understood goals and imposing on themselves their own rigorous standards, the quality of the
organisation's products and services is higher. And, not least in importance, the company's pool of ideas encompasses
not just the top management group but all employees.
So, given the positive results to be gained by an organisation from having an empowered workforce, it's not surprising
that companies aspire to achieve it. Many of the conditions that foster empowerment are the products of
management practices. Which of the following “management practices” can be applied to your organisation in
fostering empowerment in your workforce?
Set goals collaboratively with your employees, getting their input on what they should be working on and
gaining their commitment to the goals.
Emphasise how your employees' goals align to your goals and to higher-level goals so that they have a clear
sense of the broader context in which their efforts fit.
Work with your employees to set goals that produce important results rather than goals that are merely
convenient because they are easily measured.
Set goals that focus on the results expected rather than over specifying the means by which your
employees must achieve the goals.
Require your employees to access information about others' goals so that they can understand the
interdependencies of their own goals with others' goals.
Encourage and reward your employees for using the system to signal the need for help or coaching
assistance when a goal is in jeopardy.
Require periodic updates with the system, using the information to trigger discussion of progress as well as
provide documentation to ensure accurate and fair performance evaluations.
Act on information supplied by your employees through the system to increase the company's agility.
How to Write SMART Objectives
Management by Objectives is credited to Peter Drucker in his 1954 book “the practice of management”. From this
history and approach the use of the acronym SMART has grown. Increasingly, many organisations are using the
SMART acronym within objective setting and performance appraisal environments.
Types of SMART Objectives
SMART is an acronym to help in the writing of objectives.
S = Specific Specific means that the objective is concrete, detailed, focused and well defined.
Specific means that it’s results and action-orientated. Objective must be
straightforward and emphasize action and the required outcome. Objectives need to
be straightforward and to communicate what you would like to see happen. To help
set specific objectives it helps to ask:
WHAT am I going to do?
WHY is this important for me to do?
WHO is going to do what? Who else need to be involved?
WHEN do I want this to be completed?
HOW am I going to do this?
Diagnostic Questions
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What exactly are we going to do, with or for whom?
What strategies will be used?
Is the objective well understood?
Is the objective described with action verbs?
Is it clear who is involved?
Is it clear where this will happen?
Is it clear what needs to happen?
Is the outcome clear?
Will this objective lead to the desired results?
M = Measurable If the objective is measurable, it means that the measurement source is identified
and we are able to track the actions as we progress towards the objective.
Measurement is the standard used for comparison. For example, what financial
independence means to me may be totally different compared to what is means for
you. As it’s so often said if you can’t measure it, you can’t manage it! It’s
important to have measures that will encourage and motivate you on the way as you
see the change occurring, this may require interim measures. Measurements go
along way to help us to know when we have achieved our objective.
Diagnostic Questions
How will I know that the change has occurred?
Can these measurements be obtained?
A = Achievable Objectives need to be achievable, if the objective is too far in the future, you’ll find it
difficult to keep motivated and to strive to attain it. Objectives, unlike your
aspirations and visions, need to be achievable to keep you motivated. I do feel that
objectives need to stretch you, but not so far that you become frustrated and lose
motivation.
Diagnostic Questions
Can we get it done in the proposed timeframe?
Do I understand the limitations and constraints?
Can we do this with the resources we have?
Has anyone else done this successfully?
Is this possible?
R = Realistic Objectives that are achievable may not be realistic….. however, realistic does not
mean easy. Realistic means that you have the resources to get it done. The
achievement of an objective requires resources, such as, skills, money, equipment,
etc. to the task required to achieve the objective. Whilst keeping objectives realistic,
ensure that they stretch you. Most objectives are achievable but, may require a
change in your priorities to make them happen.
Diagnostic Questions
Do you have the resources available to achieve this objective?
Do I need to revisit priorities in my life to make this happen?
Is it possible to achieve this objective?
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T = Time-bound Time-bound means setting a deadline for the achievement of the objective.
Deadlines need to be both achievable and realistic. If you don’t set a time you will
reduce the motivation and urgency required to execute the tasks. Timeframes create
the necessary urgency and prompts action.
Diagnostic Questions
When will this objective be accomplished?
Is there a stated deadline?
There are a variety of types of objectives that can be written, all can be done in the SMART format.
• Process objectives
o tell what you are doing and how you will do it; describes participants, interactions and activities
• Impact objectives
o tell how you will change attitudes, knowledge or behavior (short term); describe the degree to which
you expect this change
• Outcome objectives
o tell what the long term implications of your program/ activity will be; describes longer term impact
on your target audience
• Personal objectives
o personal development is an ideal application for SMART objectives. Often we see SMART objectives
written for project management or business and performance management, however as individuals
in our personal development plans, SMART objectives are also a valuable formula.
Format of SMART objectives
A SMART objective has 5 parts:
Verb Objectives require strong “Action Verbs”. Action verbs are observable and better communicate the
intent of what is to be attempted, like conduct, develop, build, plan, execute, plan, write, conduct,
produce, apply, revise, achieve, investigate, develop, etc. E.g. “Grow “
Subject This is the WHAT of the SMART objective. E.g. “Profit”
Measure What is the measure that is to be achieved? E.g. “By 20%”
Time The timeframe in which the objective is to be achieved. E.g. “by End Q3” (end of the third quarter)
Value The parameters in which the objective is to be achieved. E.g. “within the current expenditure
budget”.
Avoid generalities in objective statements. For instance, the following “verbs” should be avoided:
� Know
� Understand
� Enjoy
� Believe
A list of “Action Verbs” is contained in Appendix A.
Objective Setting Process
The objective setting process starts with the “goals” of the organisation.
A goal can be defined as "The purpose toward which an endeavor is directed". In personal and organisational
development terms, the goal is the main single aim of the entity.
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Objectives are the elements which, together, achieve the goal.
An organisation can have more than one goal, but the number of goals should be limited to not more than 3.
A “Goal” can have one or more “Objectives”, but the number of Objectives should also be limited to ensure that they
are manageable and achievable.
Company Objective Setting Worksheet
Goal:
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
Financial Perspective Objectives
Objective 1: Verb
What
Measure
Timeframe
Qualification
Departments
Impacted
Objective 2: Verb
What
Measure
Timeframe
Qualification
Departments
Impacted
Objective 3: Verb
What
Measure
Timeframe
Qualification
Departments
Impacted
Customer Perspective Objectives
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Objective 1: Verb
What
Measure
Timeframe
Qualification
Departments
Impacted
Objective 2: Verb
What
Measure
Timeframe
Qualification
Departments
Impacted
Objective 3: Verb
What
Measure
Timeframe
Qualification
Departments
Impacted
Process Perspective Objectives
Objective 1: Verb
What
Measure
Timeframe
Qualification
Departments
Impacted
Objective 2: Verb
What
Measure
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Timeframe
Qualification
Departments
Impacted
Objective 3: Verb
What
Measure
Timeframe
Qualification
Departments
Impacted
People Perspective Objectives
Objective 1: Verb
What
Measure
Timeframe
Qualification
Departments
Impacted
Objective 2: Verb
What
Measure
Timeframe
Qualification
Departments
Impacted
Objective 3: Verb
What
Measure
Timeframe
Qualification
Departments
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Impacted
Objectives Approval:
Authoriser Human Resources
Approved by (Name):
Designation (E.g. CEO):
Date:
Notes on Using the Company Objective Setting Worksheet
1. A Goal may have one or more objectives within just one perspective.
2. There may be just one objective for a specific perspective.
3. Departments Impacted means the departments within the organisation that will impact on the objective and
ultimately on the goal. This is for “cascading” purposes.
Next Step
The next step is for these goals and objectives to be cascaded to the Impacted Departments.
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Department Objective Setting Worksheet
Goal:
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
Financial Perspective Objectives
Objective 1: Verb
What
Measure
Timeframe
Qualification
Roles Impacted
Department
Actions:
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Objective 2: Verb
What
Measure
Timeframe
Qualification
Roles Impacted
Department
Actions:
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Objective 3: Verb
What
Measure
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Timeframe
Qualification
Roles Impacted
Department
Actions:
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Customer Perspective Objectives
Objective 1: Verb
What
Measure
Timeframe
Qualification
Roles Impacted
Department
Actions:
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Objective 2: Verb
What
Measure
Timeframe
Qualification
Roles Impacted
Department
Actions:
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Objective 3: Verb
What
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Measure
Timeframe
Qualification
Roles Impacted
Department
Actions:
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Process Perspective Objectives
Objective 1: Verb
What
Measure
Timeframe
Qualification
Roles Impacted
Department
Actions:
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Objective 2: Verb
What
Measure
Timeframe
Qualification
Roles Impacted
Department
Actions:
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Objective 3: Verb
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What
Measure
Timeframe
Qualification
Roles Impacted
Department
Actions:
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
People Perspective Objectives
Objective 1: Verb
What
Measure
Timeframe
Qualification
Roles Impacted
Department
Actions:
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Objective 2: Verb
What
Measure
Timeframe
Qualification
Roles Impacted
Department
Actions:
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
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Objective 3: Verb
What
Measure
Timeframe
Qualification
Roles Impacted
Department
Actions:
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Objectives Approval:
Department Head Human Resources
Approved by (Name):
Designation:
Date:
Notes on Using the Department Objective Setting Worksheet
1. The Department Goals should be in alignment with the Company goals.
2. There may be just one objective for a specific perspective.
3. Roles Impacted means the roles within the department that will impact on the objective and ultimately on the
goal. This is for “cascading” purposes.
4. The Department Actions are the actions that will be taken at Department level to ensure achievement of the
objectives.
Next Step
The next step is for these goals and objectives to be cascaded to the Impacted Roles and individuals.
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Role Objective Setting Worksheet
Goal:
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
Financial Perspective Objectives
Objective 1: Verb
What
Measure
Timeframe
Qualification
Role KPIs: 1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Objective 2: Verb
What
Measure
Timeframe
Qualification
Role KPIs: 1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Objective 3: Verb
What
Measure
Timeframe
Qualification
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Role KPIs: 1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Customer Perspective Objectives
Objective 1: Verb
What
Measure
Timeframe
Qualification
Role KPIs: 1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Objective 2: Verb
What
Measure
Timeframe
Qualification
Role KPIs: 1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Objective 3: Verb
What
Measure
Timeframe
Qualification
Role KPIs: 1. ________________________________________________________
2. ________________________________________________________
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3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Process Perspective Objectives
Objective 1: Verb
What
Measure
Timeframe
Qualification
Role KPIs: 1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Objective 2: Verb
What
Measure
Timeframe
Qualification
Role KPIs: 1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Objective 3: Verb
What
Measure
Timeframe
Qualification
Role KPIs: 1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
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5. ________________________________________________________
People Perspective Objectives
Objective 1: Verb
What
Measure
Timeframe
Qualification
Role KPIs: 1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Objective 2: Verb
What
Measure
Timeframe
Qualification
Role KPIs: 1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Objective 3: Verb
What
Measure
Timeframe
Qualification
Role KPIs: 1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
Objectives Approval:
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Performer Human Resources
Approved by (Name):
Designation (Role):
Date:
Notes on Using the Role Objective Setting Worksheet
1. The Role Goals should be in alignment with the Department Goals which should, in turn, be in alignment with the
Company goals.
2. There may be just one objective for a specific perspective.
3. Role KPIs is the translation of the objectives into specific KPIs for the Performers in the Role.
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Appendix A: Action Verbs
You can use these action verbs when writing your SMART objectives.
• achieve
• acquire
• act
• activate
• adapt
• administer
• advise
• analyze
• arrange
• assemble
• assess
• assist
• audit
• budget
• build
• calculate
• centralise
• clarify
• classify
• coach
• collaborate
• collect
• communicate
• compile
• complete
• compose
• compute
• conceptualise
• conduct
• connect
• consolidate
• construct
• consult
• coordinate
• counsel
• create
• decide
• decrease
• define
• deliver
• demonstrate
• design
• determine
• develop
• diagnose
• direct
• discover
• display
• distribute
• document
• edit
• eliminate
• ensure
• establish
• estimate
• evaluate
• expand
• expedite
• experience
• experiment
• facilitate
• finalise
• finance
• forecast
• formulate
• generate
• guide
• handle
• help
• identify
• illustrate
• implement
• improve
• increase
• initiate
• inspect
• install
• instruct
• integrate
• interpret
• introduce
• invent
• investigate
• judge
• launch
• learn
• lead
• make
• maintain
• manage
• market
• monitor
• motivate
• navigate
• negotiate
• obtain
• open
• operate
• organise
• originate
• participate
• perform
• plan
• prepare
• present
• prevent
• process
• procure
• produce
• program
• propose
• provide
• publicise
• publish
• purchase
• quantify
• reconcile
• reconstruct
• record
• recruit
• redesign
• reduce
• reorganise
• report
• represent
• research
• resolve
• restore
• restructure
• retrieve
• review
• revise
• schedule
• secure
• select
• solve
• staff
• standardise
• streamline
• structure
• supervise
• supply
• survey
• systematise
• teach
• test
• train
• translate
• unify
• unite
• update
• write
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