How to Set performance goals

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What is performance management?
Former U. S. President Kennedy said: "performance management is a form of communication that enables people to improve themselves to reach a much more powerful realm than themselves-rather than the tools used by them. It is a process of ongoing planning, coaching, review, and rewards; it can encourage people to achieve their goals, and it is important to send humans to the moon !". From the perspective of Humanistic Management, employee growth is the foundation of enterprise growth, and performance management as a management tool cannot deviate from this foundation. Performance management and performance target formulation should be considered and applied from the perspective of positive incentives.

Value and significance of performance goals
Performance goals have the following benefits:
1. "mirror" helps the team understand their current level so that the team can perform self-evaluation;
2. "baseline": set effective performance targets for key fields to help the team stay stable at a certain level;
3. "Catalyst". challenging goals can stimulate the potential of the team and promote the growth of the team;
4. "Compass" helps the team grow steadily by reasonably setting process and stage objectives.
 
How to Set performance goals
I think performance goals can generally be divided into "process goals" and "result goals. Process objectives are used to manage and control the process of business promotion to ensure the fulfillment of business objectives, such as "attendance rate". Results goals are directly used to assess the business completion, such as "Customer Satisfaction ". The focus of "process goals" is on whether the performance goals can effectively support business goals, you can think about the following examples: "Is it helpful for developers to edit the number of lines of code every week", "Does fault response speed really help improve customer satisfaction?", and "each project's whether the number of change requests can represent the project management capability of the Project Manager ". The "result target" is relatively easy, result-oriented, and the business goal is the result target.

There is also a skill worth thinking about performance formulation. For example, "0 defect" and "pass rate 100%". Although the two goals are equivalent, in different teams, the acceptance level, incentive level, and actual execution effect of the two performance objectives are significantly different.

In the implementation stage of performance management, this problem occurs: If the goal is set too many challenges and the team members cannot reach the goal, the team morale will drop and confidence will decrease, the team began to doubt the effectiveness of performance management, especially when performance is linked to the reward mechanism, the problem is more serious. However, if the target is set to no challenge, it will greatly weaken the incentive effect of performance management, making performance management a mere formality. I have two suggestions on how to reasonably set performance goals. One is to let employees "Jump up and get it" in design principle. If they don't do it, they don't have the pressure. If they don't do it, they don't have the pressure to grow. The next time an employee jumps up, the employee does not jump. Although it is not a new idea, this idea is indeed very effective. Second, the same performance indicator can be subdivided into "budget objectives", that is, with the existing resource conditions and team capabilities, the level that the team thinks can be achieved. This goal is usually used as baseline management. From the perspective of the Organization, if the team's performance falls below the "budget target", it will have a negative impact on the Organization, as a negative incentive, and as a "challenge goal", that is, when resources remain unchanged, the Team believes that the best level can be achieved through their own efforts, this goal may far exceed the "budget goal", which is usually used as a positive incentive.

The above are some of my ideas on performance goals, which cannot be expanded in a limited space. Each organization and team should be based on their own culture, composition of members, and other factors, A comprehensive consideration of how to develop performance goals that meet their own characteristics, while the performance goals are not always the same, we should often review whether the performance goals can support the achievement of organizational goals. Performance management is a double-edged sword. It plays a key role in killing the enemy or damaging the performance target.