Every company needs targets in order to have some sense of direction in its long-term strategy. So often setting targets in the workplace becomes difficult for the manager. This should not be the case if you are in an environment that has a vision and a mission in place that actually works.
- What are targets and KPIs?
- How do you set performance targets?
- What are the reasons for having targets?
- Conclusion - Why every company needs targets
What are targets and KPIs?
I am often surprised to walk into businesses that are in operation for 20 – 30 years but when you ask what the target for a specific task is no one can give you an answer or it is a thumb suck from higher up.
The purpose of a business is to have goals that can only be achieved through reaching specific targets along the journey. Targets are specific points that you want to achieve or complete in order to have positive outcomes.
It is up to the manager to set these targets and place measurements against them. These measurements are also known as Key Performance Indicators (KPI) which will give you constant feedback on how you are performing against targets set in the beginning.
KPIs are making sure that any deviation is detected in the early stages and you can have time to implement action plans that will get you on target again.
Setting incorrect targets or KPIs can be disastrous and decisions made based on these results will give negative outcomes.
Project Management Software: Measuring team activity and getting results can be easy
How do you set performance targets?
To enable you to set targets you will first of all have to familiarize yourself with the process. Each process will consist of multiple tasks stringed together.
In order to set targets to ensure that the process is easily measurable or it will be very difficult to measure these processes against required standards.
One of the most important tasks of setting targets in the workplace is analyzing the processes and observation becomes very critical. Identify the Key Performance Areas that have a direct influence on results.
Assess what the overall requirements are and how this KPI fits into the bigger picture.
After satisfactory observation and measurement, you can compare the actual result against the requirements and goals of the organization.
The variance will be a good indicator of what a realistic target can be.
Targets can vary from a simplistic calculation to a scientifically designed formula.
In the end, there are three rules for setting a target.
- Easily identified
- Must be easy to measure
- Realistic result measured against expectation
Deviation from targets must be addressed immediately because of the impact it can have on long-term results.
Online Course: Managing employee performance
What are the reasons for having targets?
Having targets in the workplace will solidify teams into highly productive units. The mental effect that well-balanced and realistic targets have on your workforce is priceless.
The 5 main reasons for having targets in the workplace:
- Give direction to the team
- Provide focus on critical processes
- Motivate the team to achieve targets
- Provide feedback on which critical decision-making can be based
- Provide information that will be used in budgeting and forecasting
It can cost you lots of money and time without satisfactory achievement.
Conclusion - Why every company needs targets
Any process can be measured as long as your measurements are consistent. The results will still turn out information that can assist in making improvements.
Measurement will help eliminate unnecessary actions and time-wasting activities.
0 Comments