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Goal Setting

At the end of each year, we inherently reflect upon our accomplishments for that year. Have we been successful in achieving what we set out to do? Have we exceeded our expectations as well as the expectations of others? If we have not met expectations, what will be done to improve? After evaluating our performance, we focus our sights toward setting goals for the upcoming year. This week’s blog will address the goal setting process within the business environment, and offer tips for crafting viable individual goals and an individual development plan.

SMART Goals

A widely accepted business practice is developing “smart” goals. This acronym defines goals as: specific, measurable, achievable, realistic, and timely. Developing goals is essential to both the manager and employee for evaluating performance and establishing a plan for continuous development and improvement.

First, your goal must be specific. It must be clearly defined and address what will be accomplished; how the goal will be accomplished; and why the goal will be accomplished (i.e. what is the reason or what is the benefit of achieving the goal). Second, the goal must be measurable. Short-term or periodical milestones should be identified to evaluate progress in meeting the goal. Periodical milestones help gauge progress and determine if the goal will be completed as planned, or if there is a need to readjust and reforecast the goal.

Third, the goal must be achievable. Have you set a goal that will challenge you? Do you possess the knowledge and skills to complete the goal? Setting a goal that is not attainable may adversely impact your morale and motivation. To help ensure an achievable goal has been established, it is a sound practice to have agreement between manager and employee on the set goal. Fourth, the goal must be realistic and results-oriented. The goal must be relevant to the organization, and can be achieved with the appropriate employee knowledge and available resources. Fifth, the goal should be timely. Every goal should be defined with a timeframe for completion. Again, the timeframe should present a challenge and precipitate a sense of urgency in providing a tangible, quality result.

Alignment of Employee Goals and Organizational Goals

The next step in the goal setting process is critical. If your goals are not aligned with your organization’s goals and objectives, it does not matter how “smart” they are. You will not receive support from the leaders and managers in your organization to meet those goals. Further, you may (will) encounter significant resistance and disdain towards conducting activities that will benefit your personal growth and development at the expense of the organization. In this scenario, you have not established a smart goal, but a “dumb” goal. A dumb goal can be characterized as one that is: Detrimental to the organization’s objectives; Undermines the organization’s objectives (and/or is unreasonable); Mis-aligned with the organization’s objectives; and is Broadly defined without enough specifics to be understood or accurately evaluated.

Part of the leader’s role in the organization is to reward employees who consistently demonstrate the organizations’ desired behaviors and attitudes, and who deliver the organization’s desired results. Developing and attempting to execute “dumb” goals will provide the opposite leadership reaction. Employees who are not aligned with the organizational goals, objectives, and mission will be alienated and will not be rewarded.

Implications of Setting “Dumb” Goals

The organization objective is to make a profit. If your individual goals and individual development plan does not align with the organizational goals and objectives, you will not have the support of your management team in achieving those goals. If your personal goals require financial assistance, or time away from the job for classroom training, you may not receive that assistance. Moreover, the degree of resistance could result in termination. For example, your organization’s goal for 2010 may be to improve profitability by decreasing operating costs. The desired method for cutting costs may be reducing staff and eliminating unnecessary tasks. If your personal goals and individual development plan do not support this organizational goal, you could find yourself as part of that planned workforce reduction.

In order to receive support for individual goals and development, you must first understand the organizational goal; ensure your individual goals will contribute to the success of the organizational goal; and clearly articulate the expected results and benefits to the organization of accomplishing your goal. In addition, make sure to include periodic milestones in order to review your progress. These milestones can serve as an ideal mechanism for communication and interaction with your manager/leader on your work performance.

Finally, the goal setting process must be an open, honest dialogue between manager and employee. All established goals should be agreed upon – by both parties. Lack of communication leads to ineffective and unproductive employees. Open and honest dialogue ensures that both manager and employee have a vested interest in successful completion of the goal, and facilitates a much simpler and stress-free end of year performance review.

More information on goal setting and the performance evaluation process can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing).

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