The process of setting and attaining goals starts with two very important steps to help address alignment. 

STEP 1: Setting Strategy

Why does goal setting start with strategy?

Your organization strategy, as articulated in the organization level goals you set under each of the key elements or critical action steps of a Vision, are what you want to align employees’ attention and performance to. In essence, every employees’ goals should align (support, impact, contribute) with some specific part of the strategy you are using to guide your company and group. Your people need to be able to “make the connection” between what they personally do and how this fits in with the larger strategy. Even if the connection is only at the level of specific cost containment, responsiveness to customers, or contributing to safety milestones, the connection can be made to the strategy.

If you do not have a well articulated Vision for what you want to achieve or an associated business strategy for people to align to, then it is premature to expend much time on goals other than employee development ones. This is because the guidance or target for the alignment that creates the most effective results is missing. Instead, you need to do more work at setting clear vision and direction for the organization, then worry about individual alignment and goals.

How do I make the alignment explicit?

First, when you request that employees develop and review their goals with you, make the expectation very clear that every department or individual goal should tie back to an organization level goal derived from your strategy. Second, when you meet with employees to discuss and eventually agree on the goals that are set, ask for a description of how each goal contributes to the strategy if achieved.

Does this mean you and your people really have to know the strategy?

You bet! If you believe the direction from the Vision and the measures you are building into your strategy are important, then you should look for every possible way to make sure every employee understands what you are trying to accomplish, why it is important, and how they can contribute. 

The best way to make the strategy “live” for employees is for them to connect their own performance to the words, and have leaders pay attention to that performance.

STEP 2: Setting Goals

What is the process for setting personal goals?

1. Review the Strategy and determine what segments you can most directly impact in a way that creates value.
2. For each element of the Strategy you decide to address, write down what you can impact and what the measure of that impact or value could be.
3. Draft a set of goals based on items 1 & 2 using the S.M.A.R.T. format described later.
4. For each goal, decide what the best time-frame for having an impact or achieving a target should be. Results or outcomes that will take a year or longer to see progress on are okay at a high level, but should be broken down into milestones that can be measured on more of a weekly to quarterly time-frame.
5. Once you have shared your draft goals, schedule a goal setting discussion with your leader.
6. Expect your supervisor to suggest edits, modifications or even additional or alternative goals. You want this goal setting process to be interactive so that in the end, both you and your leader know what you are seeking to accomplish and how it aligns to the Strategy.
7. When agreement is reached, your approver should check each goal as approved. Now is a good time to schedule follow-up progress reviews.
   
   

Who takes the lead on setting goals?

Goal management is a shared activity between leaders and employees. The process is generally initiated by the leader with a formal request for goals and guidance on what targets should be focused on. The employee is responsible for developing the initial draft of goals and for playing an active and interactive role in defining the goals. The leader’s role is to provide guidance on goal feasibility, goal value, and alignment to the strategy for the group, department, business, and so forth. Ultimately, the leader is responsible for integrating the individual goals into a performance outcome consistent with the larger targets; therefore, the leader has the role of final approval of the employee’s goals.

That said, the best circumstance is where there is mutual agreement on the goals.

How do I write good goals?

The best format for writing effective goals uses the acronym S.M.A.R.T. for Specific, Measurable, Attainable, Relevant, and Time-based. Brief descriptions of each of these elements are provided below. Download the SMART Goal Worksheet to help you develop these.

Specific – Goals need to be clear, action oriented, and easy to understand rather than vague. Goals should state specifically what it is that is going to be changed or accomplished, preferably in terms of a measure, and by when.

Measurable – Goals should be measurable. You need to set an objective target so it is easy to track your progress and agree on whether the goal has been met. Having the goals measurable assures the value of the goal and makes managing performance much easier and fairer.

Attainable – Goals need to be challenging, yet realistic. Don’t set goals so high that they are impossible to achieve. Decades of research on performance have shown that for individual goals to be effective, they have to be demanding, but not so hard as to appear unattainable. Performance and satisfaction are higher when the average probability of success is around the 70 - 80% level.

Relevant – A goal must be relevant to the strategy and direction of the organization. The goals you set need to be consistent with other goals you have established and fit with yours as well as your organization’s short and long-term vision.

Time-based – Goals should have a clear start time and a planned “due date” for goal completion. Larger projects should have milestones or sub-tasks that have both clear due dates but also decision points regarding project funding, progress, and so forth.

The extent to which goals mirror the elements of the Strategy change as you move down the organization. For leaders at the top whose responsibility is for the performance of a business unit or function, their goals will be very close to the target set in the strategy. As you move down the organization to individual roles, the goals become more contributory and project completion based.

Critical Note: In addition to their performance goals, all employees should include some kind of personal development goal, such as to use existing systems or tools better, or gain new skills and experiences. Part of steadily improving the organization is to keep everyone learning.

What should I avoid in writing goals?

• Vague goals with little or no measures of impact or quality.
• Goals that are too big in scope — break them down into milestones that can be celebrated or evaluated throughout the project’s life-cycle.
• Goals that the organization or your leadership are not as concerned with if they are not accomplished.

At ThinkWise, our goal is to provide you with the necessary resources to make smart Employee Development decisions. Below is a link to the full report: 5 Steps To Effective Management Through Goals. This guide will help you understand more about aligning and attaining your goals.