I watched José, a highly skilled internal trainer, conduct a goal-setting seminar for a group of middle managers.
“Please stand there,” he said to the first volunteer, “your task is to throw as many pieces of paper as you can into that trash can.”
Feeling decidedly embarrassed, the young man complied, slowly rolling up the sheets of paper and throwing them into the wastebasket. After a minute, the coach intervened. “Is that enough?” José asked the now even more confused participant, who responded affirmatively, grateful to be back in his place.
The trainer counted the number of paper balls in the trash can and asked for a second volunteer.
“OK, your task is to throw as many wads of newspaper into that basket as possible in 1 minute. Your goal is to get 21.”
The second person prepared for the task and achieved a final score of 29.
The coach called the third volunteer.
“Okay, you saw what the others managed. How much do you think you can do in the same amount of time?” “I can beat both of them, no problem!” he said, and rolled up his sleeves. He finally got 33 papers in the basket.
“That’s not fair,” the first complained, “you didn’t give me any rules!!”
“That’s not fair,” the second complained, “you didn’t give me any choice!!”
“It was totally fair,” said the third. “I knew what I had to do and when, and I was able to say what goal I thought I could meet. I set the highest goal and I achieved it.”
Deja vu
Time and again, difficulties arise when setting goals. However, they're almost a catchphrase in general and, more specifically, business language: we talk and talk and talk about management by objectives, evaluation by objectives, variable compensation tied to objectives, and so on…
But what are they? What characteristics should they have? How can we make them a stimulus rather than a frustration?
What are they?
We define a goal as what we have to do to achieve a desired end result. But how? Isn't a goal the result we want?
No. And to understand it, here's an example:
Desired end result: an improvement in the company's 51TP3Q profitability in the current fiscal year.
Objective for the sales area: increase the current portfolio of active clients by 20% within a period of 6 months.
Objective for the production area: reduce raw material waste by 10% within 6 months.
The desired end result is the same, but the contribution of each area will be different.
What characteristics must objectives have to be well defined?
For this we propose a mnemonic rule:
M edibles
TO achievable
D challenging
AND specific
R realists
TO limited (in time)
How can we make them an encouragement rather than a frustration?
For this some tips:
1. TransparencyNo objective is challenging if the indicator showing progress and achievement isn't transparent and accessible to everyone. If this isn't the case, suspicions will quickly arise about the calculation method and/or the results obtained.
2. Negotiation: People like to participate, especially in matters that will affect their work and, even more so, their income. On the other hand, what is imposed is difficult to accept. We need to provide space for negotiation within previously established frameworks. That way, participants will feel committed to compliance and not merely instruments of execution.
3. Data: Goal setting MUST be based on data, not opinions. "I think we can increase sales by..." doesn't have the necessary force, validity, seriousness, or credibility. On the other hand, "Based on the analysis of the last 5 years, on the data in the context, and on our sales force, our goal could be..." What do you think sounds better?
4. Listen: If a goal generates a lot of resistance, you have to sit down and listen to what's happening. Perhaps the resources to carry it out aren't there, or the people aren't trained, or there are doubts about the underlying data. In any case, it's good to let yourself be questioned.
Objectives are critical and indispensable tools for effective management, provided they meet these requirements. Otherwise, they will result in injustice or mere wishful thinking.
And you, how many papers do you think you can fit into the wastebasket and in what time?
We continue in the next one.
