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 of performance, or define aspirations for improvement 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

Where you are expected to reach, and will be held to account for not reaching Where you are expected to reach if you carry on as at present How you measure performance

stretched target, target, goal, objective

standard, minimum standard, planned performance forecast, expected results

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 complaints system) but not wish to make this a target since they feel one unfortunate incident leading to a complaint means that they have failed. Here it might be helpful to distinguish between the aim or aspiration of zero complaints, and the target or standards against which they will be judged. A monitoring report which only lists the number of targets met or not met, may be misleading if some of the targets are aspirational and some are expected results. If someone feels they will be penalised for not reaching a target, they may set it in terms of what they think they are likely to achieve, rather than making it stretching, so missing the motivational potential. Target Setting v01-121710

Why Set Targets

1.
2. 3.

4.
5. 6. 7.

Prioritize Help to define an agreed direction Focus attention and resources Motivate staff Promote accountability Performance Management Self-Improvement
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When To Use Target?

You can positively affect the outcome (within the timescale for this target) There is enough predictability in the area of performance for a target to be meaningful A target will help focus attention on a particular area of importance A target will motivate the people working in this area to put more effort into finding ways of improving it A target would be helpful to demonstrate to the rest of the organization that this is regarded as important and there is a commitment to deliver. It will be possible to monitor progress against the target without 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 on linear scale one side of threshold is OK, other side is not OK Limit Based (i.e. 100% or 0%) usually operational or aspirational.

Operational may described required operating pattern Aspirational may be impractical to achieve but may define worthy goals

Rule Based (i.e. multiple values need x out of y to hit a limit or threshold type target for target to have been achieved)

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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 nonattainment Those who will approve the resources required

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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 and accountable 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 Programs

Process: Period Covered: Date Updated:

IMPLEMENTATION

EVALUATION

OBJECTIVE Activities

Responsi bilities

Time Frame

Needed Resources/ Budget

Evidence of Progress

Related Documents & Records

Status /Remarks (% Accomplishment )

Evaluated By:

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Key Performance Measure

OBJECTIVE KEY PERFORMANCE INDICATOR TARGET FREQUENCY OF REVIEW ACTUAL (MONTH/YEAR) % ATTAINMENT SOURCE OF DATA

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Thank you!

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