Wondering how your organization’s objectives compare to others? Here are 12 common performance management goals for organizations of all kinds. Show
RJ Messineo RJ, Associate Consultant, works with ClearPoint customers to improve the efficiency and effectiveness of their performance management processes by leveraging ClearPoint's strategy execution software. FILED UNDERStrategic PlanningStrategy ExecutionGoal-setting is crucial for all organizations. Not only do goals define what your version of success looks like, but they also provide direction for your day-to-day operations, and align resources with priorities. Absent a set of clear goals, your organization is operating without purpose. Your performance management goals—those that define what your organization wants to achieve over the next three to five years—should be based on your overall strategic plan. So while your own goals, and the KPIs and initiatives that support them, should be specific to your organization, there are some goals or objectives that are commonly used across industries. Below are 12 examples of performance management goals that might serve as a basis for your own goals, with some tweaking to match your organizational strategy. ClearPoint strategy management software was designed to make sure you follow through on your goals. Schedule a demo today!12 Performance Management GoalsIn order to be successful with performance management, organizations must implement a framework to see that their performance is actually being managed. The 12 sample objectives of performance management that follow are arranged according to the four perspectives of success used in the Balanced Scorecard (BSC) framework: financial, customer, internal processes, and learning and growth. And because the BSC framework directly connects goals with measures and projects, that’s how we present our example goals, along with sample KPIs and some projects to match. Here’s how BSC connects the dots, so to speak:
While the examples below are arranged according to the four BSC perspectives, that doesn’t mean they aren’t applicable to organizations using other frameworks. (You can read about other strategic planning models here.) No matter what lens you view your strategy through, creating goals that strive to move your organization forward in multiple ways will better position you for the future. (You can read more about corporate performance management here.) We’re often asked by our clients how many goals they should have. Our answer: Usually two to four aligned with each of the perspectives is on point. Additionally, you need at least a couple of KPIs matched to each goal, and a supporting initiative for each. The more actual data you have that supports those goals the better. Pro Tip: Many organizations create goals without putting much thought into the KPIs that should align with them. Very often, the KPIs they think will show progress are not as relevant as they seem, and won’t provide the right kind of insight. Read up on the various methodologies for developing KPIs, and spend time crafting ones that effectively support your business goals.Financial PerspectiveFinancial performance is top of mind for for-profit companies, and even nonprofits and governments rely on incoming revenue to continue operations. That’s why the financial perspective usually appears at the top (or near the top) of most Balanced Scorecards. The following are three finance-related examples of performance management targets; all are of equal importance in achieving financial health.
Customer PerspectiveOrganizational performance isn’t only about revenue. Customers are crucial for strategic success (and your bottom line). The theory behind this perspective is that you have to make your customers happy to sell them products and services; and in order to make your customers happy, you have to understand them. For nonprofits, your “customers” are the recipients of your services, and for local governments, they are your residents. Three typical customer-related goals are:
Internal ProcessThis perspective focuses on the things you need to do internally to be successful as an organization. It covers a variety of areas, from streamlining workflows to automating processes to becoming more innovative. Shining a spotlight on your internal processes can help you identify areas that may be holding you back from providing the greatest value to your customers in terms of efficiency, cost, and quality.
Learning and GrowthYour organization’s ability to continue to improve and create value revolves in large part around your workforce. Goals within this perspective focus on building and strengthening your human capital, so you can continue to be successful as an organization. Three common objectives of performance management in this area are:
Once you have your Learning and Growth objectives, make sure you select the right HR KPIs to track your progress. ConclusionMost organizations allow three to five years to achieve long-term goals like the ones outlined above. But remember to review your goals periodically—along with your measures and projects—to make sure they remain relevant. And even though some of these goals might remain consistent through new cycles of your strategic plan (like the goal to increase revenue) look at adding new KPIs and projects every so often to attack them in different and innovative ways. It’s entirely possible that your KPIs and projects might change on a yearly basis, instead of every three or five years. If your looking for even more strategic objectives to choose from, check out these 56 strategic objective examples. Creating performance management goals is just the beginning of the strategic management process; there’s plenty more work to be done in terms of tracking performance and reporting on it. Our website has numerous resources to help you with every aspect of performance management, including:
Whether you’re a for-profit company, a nonprofit, a healthcare organization, or a local government, ClearPoint has all the tools you need to plan—and carry out—your strategy successfully. What is the last step in performance management process?The last step of the performance management process is the reward and recognition. This step is absolutely key – employees will not stay motivated if they are given no reason to. This does not necessarily have to be monetary, although it likely will include monetary compensation.
What are the 4 steps of the performance process?The performance management cycle definition encompasses four main stages:. Planning.. Monitoring.. Reviewing.. Rewarding.. What are the 5 stages of performance management?All five component processes (i.e., planning, monitoring, developing, rating, rewarding) work together and support each other, resulting in natural, effective performance management.
What are the steps in performance management process?Performance Management Process. ... . Planning Phase Overview. ... . Write S.M.A.R.T. Goals. ... . Set Performance Standards. ... . Define Behaviors. ... . Coaching Phase Overview. ... . Provide Feedback. ... . Give Effective Feedback.. |