As leaders we need to know where are we going and how to get there. We also must know how to perform a multitude of functions in order to produce the desired goals / targets. These must be measurable goals connected to sales and revenue targets, to profitability, to internal and external customer’s satisfaction and others as per needs of the organization.
It has been proven that people who set goals perform more effectively than those who do not set goals. Also goal setting tends to increase the company’s bottom line.
Five components in setting goals:
|1.||Specific:||Goals should be explicit and unclouded. Something to aim towards without misinterpretation.|
|2.||Measurable:||Goals must be measurable because the resulting objectivity helps define goals of actions that one can readily see.|
|3.||Acceptable:||Goals should not be imposed by upper management or the superior but accepted and committed by the person receiving the goals. However one of the purpose of setting goals is to continuously improve the market position of the organization.|
|4.||Challenging but Realistic:||Goals should be challenging. They should also be set with regard to an individual’s capabilities and limitations. But goals should be achievable otherwise the person loses interest.|
|5.||Timely:||Goals should be temporarily relevant, that is, appropriate for short term concerns i.e.: 6 months or one year.|
Goal setting cannot be implemented without effective, regular coaching. Ensure that goals are created together with those that will have to achieve them. Have measurable milestones along the way and most importantly must include incentive of reaching / exceeding the targets.
Goals are to be properly documented and signed by both parties. Ideally there should be a scheduled review between supervisors and subordinates to assess progress and address shortcomings.
Once the goals are finalized, it is important to set objective for each goal: objectives are short term milestones that enable people to map out the conditions that must be met for goals to be reached.
An important facet of goal achievement is keeping accurate records of the progress made towards goal accomplishment. Precise records will document gradual progress towards distant goal(s).
Good timing of setting goals is very important i.e.: beginning of the year for the annual goals and at the beginning of a specific period (low season?) for short term goals.
For consistency purpose, it is strongly recommended to develop a not too complicated format used throughout the organization stating the method used to document and score each goal. The format also includes areas of improvement to be made and specific trainings / development program for the individual.
Method of calculating the incentive / bonus is the same throughout the organization; however the specific amount given to each participant is to be strictly confidential.
(Enclosed, sample of annual performance review – KPI’s for hotel GM’s & Hotel Excoms)
Performance Review for GM and ExComs 2012