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MANY TYPES OF GOALS

So far, this chapter has discussed the general qualities of effective goals. Next, where can you get ideas for specific goals for individual employees? Your workers may have their own goals, reflecting their life and career ambitions. However, you should consider what you need to target as well. Sometimes, because of a corporate mandate or because of an individual’s deficiencies, the goals you need to set are obvious. Otherwise you should look for potential improvements in four main areas: performance, individual competency, core competency, and personal development.

CASE FILE

WORKERS MAKE THEIR OWN CHANGES

After a new “lean” was put into place at Flexible Steel Lacing Co., a Chicago-area manufacturer of conveyor belt fastening systems, its 240 employees were assigned the goal of initiating four improvements each year. Employees who achieved this goal would be able to earn a year-end bonus. This approach to the workplace, with employees in charge of improving processes and encouraged to make decisions on the spot, constituted a huge shift from an earlier culture of managerial entitlement. But the results were striking. In 2006, when workers were coached to think for themselves and not wait for directions, customer delivery times were 36 percent faster than in 2002. When this new efficiency eliminated jobs, workers were retrained and moved into other positions.

SOURCE: “Workers Contribute to Bottom Line” by Ann Meyer, Chicago Tribune (August 14, 2006).

Performance Goals

Performance goals are the most obvious to define. They describe the work the employee is expected to turn in, produce, or deliver, as well as specific contributions to the company’s business objectives. If a large grocery chain aims to improve its service and ease-of-use, for example, then the goal of a stock person in the produce department might be to create more readable signage, which would be measurable by increased produce sales and fewer questions and complaints from customers.

Performance goals can also encourage people to stretch in their work, to exceed the expectations outlined in their original job descriptions. Note that, if the overall business cycle changes, or an employee is given a new work assignment, performance goals must be adjusted accordingly.

Individual Competency Goals

An employee’s “individual competencies” are the knowledge and skills needed to do the work laid out in the job description. During the goal-setting process, consider how the individual employee measures up in key areas: What competencies is the employee lacking? Performance skills or people skills, for instance? Specific knowledge? On the other hand, are there particular strengths that can counter the employee’s weaknesses? Competency goals allow employees to focus on their technical skills but provide a unique opportunity to also improve soft skills—personal skills and attitudes, effective communication, ability to think outside the box, flexibility, change-readiness, problem solving, team building, and social dexterity—which are often just as important for success.

Core Competency Goals

Some firms aim to develop their “core competencies”—that is, the unique mix of skills that provides distinct benefits to the company’s customers and distinguishes the company in the marketplace. Black & Decker’s core competency is producing a certain type of motor, for example. A company’s core competencies usually reflect the organization’s culture and values.

Dos & Don’ts

SET GOALS EFFECTIVELY

These broad guidelines will help you and your employees set effective goals together.

Do create today’s goals with a larger vision in mind.

Do focus on performance goals.

Do keep goals concrete, rather than abstract.

Don’t let fear of failure keep your goals too small.

Do remind employees that a belief that a goal is unrealistic may be mistaken.

Don’t set goals for situations your workers can’t control.

The BIG Picture

IMPROVING SOFT SKILLS THROUGH COMPETENCY GOALS

Because soft