Sunday, October 26, 2014

5 Reasons Why Every Company Needs Targets

setting the right targets for your company

Targets as part of the normal business plan

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 a place that actually works. 

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.

It is up to the manager then to set these targets and place measurement against it. Make sure that these targets tie in with the overall company plan. 

Setting incorrect targets can be disastrous and decisions made based on these results will give negative results.

Setting targets in the workplace

To enable you to set targets you will first of all have to familiarize yourself with the process. Each process will consist of a multiple of 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 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 scientifically designed formula.

In the end, there are three rules for setting a target.
  • Easily identified 
  • Easily measured 
  • Realistic result measured against expectation 

Targets must be communicated to staff before implementation and once it is in place monitoring and enforcement must be constant. 

Deviation from targets must be addressed immediately because of the impact it can have on long-term results.

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 

Not having targets, standards and goals in place are a bit like getting into your motor vehicle and driving off without really wanting to go somewhere specific. 

It can cost you lots of money and time without satisfactory achievement.

QUESTION: What outcomes do you expect from targets you have set?

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