Target Setting by Lyne

7/28/2019 Target Setting by Lyne

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Target Setting v01-121710

Target Setting

Presented by:

Engr. Lyne L. Osorio


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FACTS ON TARGET SETTING

Easy in theory but is difficult to do in

practice

Many targets do not result

in improved performance


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Understanding Targets

Time bound

May specify a minimum level ofperformance, or define aspirations forimprovement

Consistent with the SMART criteria

Measured via performance indicators


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Some Definitions

Where you would ideally like

to reach

vision, mission, ambition,

aspiration, aim

Where you would like to, and

should be able to reach

stretched target, target, goal,

objective

Where you are expected to

reach, and will be held to

account for not reaching

standard, minimum standard,

planned performance

Where you are expected to

reach if you carry on as at

present

forecast, expected results

How you measure

performance

performance measures,

performance indicators.


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Some examples

A particular service may aspire to have no complaints(assuming they have a good and accessible complaintssystem) but not wish to make this a target since they feelone unfortunate incident leading to a complaint meansthat they have failed. Here it might be helpful todistinguish between the aim or aspiration of zerocomplaints, and the target or standards against whichthey will be judged.

A monitoring report which only lists the number of targets

met or not met, may be misleading if some of the targetsare aspirational and some are expected results.

If someone feels they will be penalised for not reaching atarget, they may set it in terms of what they think theyare likely to achieve, rather than making it stretching, so

missing the motivational potential.


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Why Set Targets

1. Prioritize

2. Help to define an agreed direction

3. Focus attention and resources4. Motivate staff

5. Promote accountability

6. Performance Management7. Self-Improvement


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When To Use Target?

You can positively affect the outcome (within thetimescale for this target)

There is enough predictability in the area of performancefor a target to be meaningful

A target will help focus attention on a particular area ofimportance

A target will motivate the people working in this area toput more effort into finding ways of improving it

A target would be helpful to demonstrate to the rest ofthe organization that this is regarded as important andthere is a commitment to deliver.

It will be possible to monitor progress against the targetwithout disproportionate cost


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HOW DO WE SET TARGETS?

Looking at previous performance figures

and suggest a target that looks a bit

better. Calculate targets as mathematical steps,

making fixed increases.


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SMART Goal Setting: A Surefire

Way To Achieve Your Goals

S = Specific

M = Measurable A = Attainable

R = Relevant

T = Time-bounded

C = Challenging


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Choosing a target value

Threshold Based i.e. need to reach a fixed value onlinear scale one side of threshold is OK, other side isnot OK

Limit Based (i.e. 100% or 0%) usually operational oraspirational. Operational may described required operating pattern

Aspirational may be impractical to achieve but may defineworthy goals

Rule Based (i.e. multiple values need x out of y to hit alimit or threshold type target for target to have beenachieved)


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Next.

Determine action plan needed to achieve

the target

Consider the time period

Clarify necessary action to be undertaken

Produce an action plan with

accountabilities, costs and timescales


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Who is responsible in target

setting? Establish ownership of target by involving

personnel :

Those who will deliver the target

Those who will be held accountable of non-

attainment

Those who will approve the resourcesrequired


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Final checks

Create ownership

According to SMARTC challenge

Ensure action plans are in place

Ensure that performance against target is

monitored on a regular basis

Be clear who is responsible in monitoring andaccountable in non-performance

Be sure that action will be taken if required as a

result of monitoring


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Why some targets do not result to

improvement? Lack of ownership of target

Unreliable data

Perverse Incentives

Ambiguous indicator

Distorted Activity

Gaming

Confusion over terms Lack of attribution

Targets working against each other

Too many or wrong kind of indicators


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Dont Set Target for Targets Sake


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Nakayama Technology Corporation

REVIEW AND IMPROVEMENT

Plans and ProgramsProcess:Period Covered:Date Updated:

OBJECTIVE

IMPLEMENTATION EVALUATION

Activities ResponsibilitiesTimeFrame

NeededResources/

BudgetEvidence

of ProgressRelated

Documents& Records

Status /Remarks(% Accomplishment )

EvaluatedBy:


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OBJECTIVEKEY PERFORMANCE

INDICATORTARGET

FREQUENCY

OF REVIEW

ACTUAL

(MONTH/YEAR)

%

ATTAINMENT SOURCE

OF DATA

Key Performance Measure


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Thank you!