techniques for using goals to drive business execution: when just being smart is not enough

Speaker: Steven Hunt Principal Director, Business Execution Practices SuccessFactors

Moderator: Daniel Margolis

Managing Editor Talent Management magazine

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Techniques for Using Goals to Drive Business Execution: When Just Being Smart Is Not Enough

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Daniel Margolis Managing Editor Talent Management magazine


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Steven Hunt Principal Director, Business Execution Practices SuccessFactors


7 SuccessFactors Proprietary and Confidential © 2011 SuccessFactors, Inc. All rights reserved. SuccessFactors Proprietary and Confidential © 2011 SuccessFactors, Inc. All rights reserved.

Techniques for using goals to drive business execution: when just being SMART is not enough Steven Hunt, Ph.D. Principal Director, Business Execution Practices E-mail: [email protected]

8 SuccessFactors Proprietary and Confidential © 2011 SuccessFactors, Inc. All rights reserved.

Role goals play in an integrated talent management process

Who you are How you act What you achieve

8

Right People Staffing , Promotions &

Workforce Planning

Right Way Performance Management,

360 & Compensation

Right Things Goal Management,

Collaboration & Compensation

Right Development Succession, Career Development, 360,

Learning, & Collaboration

Skills Aptitudes Interests

Competencies, Values, Behaviors

Create learning through experience Goals define why

jobs exist!

Goals


In 90% of the studies, specific and challenging goals lead to higher performance than easy goals,

“do your best goals” or no goals. Locke, Shaw, Saari, Latham, 1981

Psychological Bulletin, Vol. 90, page 125


What makes goal setting difficult?

•  People have difficulty translating generic goals to specific goals for their role

•  Perfectionism aspiration •  Time consuming to create clear goals •  Coming up with ways to effectively measure

goals •  Keeping goals consistent with changes in

the strategy or environment


The problem with SMART goals

•  The SMART framework does not reflect how people actually set goals

–  Do I have the right goals? Attainable and Relevant •  This is about the goal setting conversation •  It depends on having a good goal setting process

–  Do I have clear goals? Specific, Measurable, and Time-bound •  This is about how you write the goal •  It depends on the structure of your goal plan

The SMART concept often distracts people from what should be the main focus of goal setting: do people understand what they are supposed to do and why it is important

to the business and their careers?


Critical Issues in Goal Management Design

1.  Ensuring employees have well defined goal plans 2.  Aligning employees’ goals to the business strategy 3.  Making goals meaningful and motivational –  Using goals to support employee development and career growth –  Creating a relationship between goal accomplishment and

employee pay, promotions, and recognition

4.  Measuring employee goal accomplishment 5.  Coordinating goals across employees to foster

communication and collaboration 6.  Using goal data to guide business execution

decisions

12


Why goals are important

Strategic Direction

Performance Feedback

Intrinsic Motivation

Extrinsic Motivation

Personal Confidence


The computer company and the horseshoe crab: a tale of poor goal management


What is your level of goal maturity?

1. Tangible: everyone in the company has a clearly defined, measurable set of goals

2. Aligned: employees’ goals can be linked to overall strategic objectives of the company

3. Meaningful: people see a link between career success and accomplishment of their goals

4. Coordinated: people across departments collaborate to accomplish interdependent goals

5. Operational: goals are frequently reviewed at all levels to actively manage business execution

16 SuccessFactors Proprietary and Confidential © 2011 SuccessFactors, Inc. All rights reserved. SuccessFactors Proprietary and Confidential © 2011 SuccessFactors, Inc. All rights reserved.

What a goal plan should define The purpose of your job; what you are paid to

achieve, create, or maintain.

Metrics showing what you contribute to the company. If someone never saw you work, what evidence could you provide to indicate you are

successfully performing your role?

Priorities. The 5 to 10 most important things you are expected to accomplish.


Commitments Outcomes Deliverables: an alternative to SMART

•  Short phrase describing what you are doing and why it is relevant to the business – it should have a verb in it!

•  Improve customer service levels in the stores I manage Commitment: What I’m doing

• Results you will create by achieving this commitment; “evidence” that will demonstrate you were successful

•  Scores of 90% or better on customer surveys •  Increase year on year store sales by 5%

Outcomes: Why I’m doing it

• Actions you will complete to meet the commitment; tactical strategy you are taking to drive the outcomes

•  Provide customer service training to employees • Review monthly customer survey results with team •  Implement customer suggestion program

Deliverables: How I will do it


Guidelines for effective goal plans

Have at least 5 goals & no more than 10

Define goals to be independent of each other

Do not list personal development objectives •  Goals can (and should) drive personal development, but are not the same as

development objectives •  Example: instead of listing a commitment like “Learn Excel”, write the business reasons

driving this development objective, such as “support project X “ which will require “learning Excel”

Personalize commitments to your job

•  Change names of cascaded goals; make them relevant to your role


Aligning goals to company strategy CEO: Decrease operating costs by $5 million per year

COO: decrease hospital acquired illness by 10% over the coming year

Facilities Director: Implement occupational health and safety programs in all departments

Cafeteria Manager: Develop and enforce proper food handling procedures

Dishwashers: Ensure all dishes are cleaned using water heated to a level that will kill bacteria


Man

ager

‘s G

oal P

lan Commitment

•  Improve product quality and reduce costs created by re-work

Outcomes •  Decrease product defect rate to less than 1

per 10,000 units •  Lower cost per unit manufacturing costs by

5% Deliverables •  Re-engineer product inspection process •  Hire a process maintenance engineer •  Implement alpha quality training across the

manufacturing team •  Re-negotiate vendor contracts to obtain

higher quality raw materials E

mpl

oyee

’s G

oal P

lan

Commitment 1 •  Re-engineer product inspection process Outcomes •  Decrease product defect rate to less than 1

per 10,000 units •  Shorten product inspection time by 5% Deliverables •  Conduct Kaizen workshop with

manufacturing team during Q1 •  Document and train supervisors on new

process by end of Q2

Commitment 2 •  Implement alpha quality training across the

manufacturing team Outcomes •  Decrease product defect rate to less than 1

per 10,000 units •  100% certification of manufacturing team

on Alpha quality process Deliverables •  Develop quality training curriculum •  Arrange for training department to deliver

training for all employees by Q2

Goal cascading using commitments, outcomes, deliverables method

20

1. Manager cascades one of her commitments to an employee on their team that has mul7ple parts

2. The employee translates this into two commitments based on those aspects that are relevant to his role


Making goals meaningful & motivational

21

Business Objectives

Career Objectives

Employee Capabilities

Balancing what the company needs, the

employee wants, & what the employee can do


Not everyone wants the same thing • Want to be part of a

collective team that is fulfilling its mission

• Goals that emphasize a common vision

Group Oriented “Part of something bigger than myself”

• Want to build and demonstrate their capabilities

• Goals that reflect a higher mission; going beyond status quo

Mastery “Be the best I can be”

• Want to be confident they can do what is expected of them

• Goals that provide recognition around being a valued team member

Security “I have a clear & important role”

• Want to know what it takes to get tangible rewards

• Objective goals directly tied to objective rewards

Transactional “Show me the money”


Integrating business goals & career objectives

23

1

2

3

4

5

1 2 3 4 5 Importance

"Stretch"

Lead Acquisition Team

Build New Project Group

Track & Manage Revenue Targets

Complete MBA

Conduct College Recruiting

Write monthly department newsletter

Business Driven Development Goals

Self-Focused Development Goals

Core Functional Goals

Under-utilization (busywork)


Assessing goal accomplishment:

24

People who always exceed their goals are not setting difficult goals


Creating collaboration among people with similar or shared goals

25


Using goals for business execution: shouldn’t we talk about them more than twice a year?

26

Goal Creation Goal Updates


Use reporting to make goals relevant and apparent to senior leaders

27


What managers and employees say about good goal management

…better relationship with

customers …first time in 18

years that I’ve had objectives…

I understand how I fit in…. …improved

accountability

More meaningful discussions….


I hope we can continue the conversation!

For more information and a talent process maturity

assessment please request a copy of the

white paper “Doing the right things: Using goal

management to drive Business Execution”

www.successfactors.com

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techniques for using goals to drive business execution: when just being smart is not enough

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