Performance + Goals. Two words that can cause a great deal of excitement -or anxiety- for employees and managers. They can be that North Star which leads you to success or more like a New Year’s resolution started in January and forgotten by February.
We’ve all been there. But, it need not be this way. Put into place well, a goal in performance can actually motivate employees and help them become more productive while driving the business forward. So, you must be asking now: how do we go about making goals that employees actually care about?
Now, let us get down to the meat of it.
The Problem with Traditional Performance Goals
First things first, why do so many performance goals fail? Too many times they are too broad or not descriptive. The target is rarely to ‘up sales by 10%’ or perhaps, ‘enhance customer satisfaction’, neither of which will make you jump out there bed on a Monday morning. Individuals see these goals and say, Meh. What do I get out of this? Without that clear line of effort exerted on how personal success will be achieved and what the team will benefit from, motivation rapidly wanes.
Question- When was the last time you wrote down a goal simply to write it and feel purposeful but didn’t even believe in that person’s ability or want to attain it? How long did it last? Yeah, exactly. The same goes for your team. You need goals that are meaningful, personalized, and hell yes, dare I say it — exciting!
How to Set Performance Goals That Matter
OK, so how do we address this? Well, it all starts with identifying goals your employees care about. A few of the many things you can do to take a ho-hum performance goal and tune it into more like heck yeah! Let’s dive in.
1. Align Goals with Personal Aspirations
First things first, you must ensure that what the company is pushing forth isn’t badgering you. Employees are competitive, and they crave growth in their job roles. They are going to have a lot more buy-in if their goals reflect where they want themselves.
Let us assume that you have a marketing manager, who is eager to position himself in the industry as a thought leader. For example…Rather than asking them to “increase our social media engagement,” rephrase the objective so that they enhance their own personal brand in return.
For example, produce a widely industry-recognized series of LinkedIn posts engaging your as well as company status in digital marketing innovation. That’s a goal with force!
2. Make Them SMART—But Add Meaning
You have, more likely than not heard of SMART goals: Specific Measurable Achievable RelevantTime-bound.Let’s just say this makes goal…smarter (duh!) But SMART goals fall short in one particular area…the emotional engagement. Even if a goal is perfectly framed, it just may not get your employees buzzing.
Now let’s add a hint of purpose and sprinkle of meaning to this SMART formula. Make sure it is not just a box that needs to be ticked off, make sure the goal seems like something somewhat important. Instead of “10 client calls per day,” maybe “build at least 3 genuine partnerships with clients for the long-run”.
3. Involve Employees in the Process
There is nothing that would make people care less about the goals they have to meet than when it feels like these were put onto their plate without even asking. It’s like planning your birthday party without asking you what flavor of cake you like. When employees have a choice in the goal-setting process, they feel responsible and accountable.
One trick, however, is to wait for performance reviews or one-on-ones and ask What do you want to get done this year? How would you like to develop? Create the performance goals with each other. That is beyond just working together, it’s about a sense of partnership.
4. Make Goals Dynamic and Flexible
Let’s be real—things change. The fact of the matter is that business priorities change, market conditions evolve, and new opportunities arise. So, rigid and un-changeable for month goals can boomerang right back around. Performance goals must allow employees to change them as circumstances change.
For example, take the tech industry. A software developer might begin the year aiming to roll out a new feature by Q3. But what if halfway through the year, they decide to change their focus to a different product? Should the developer keep slogging away at the old goal? Of course not. This may require being more flexible about your goals as now and then they will have to be edited or discarded entirely! It’s about keeping it alive and motivating.
The Magic of Peer Accountability
We all know that you are less likely to ditch something if someone is holding it over your head like a nagging mother. Sure, setting a personal goal is one thing; but reaching it as part of an ensemble? Ultimately, peer accountability is the difference between hitting your performance goals and falling short of them.
Take the case of Buffer, a social media management platform. This app is famous for its way of being transparent and accountable. Workers publicly declare both personal and professional goals within the company, fostering a culture in which everyone not only cheers each other on but also keeps one another honest.
Case Study 1: Atlassian and The Power of 20% Time
Now, let’s dig into a company you’ve probably heard of, but one that’s not always in the public spotlight—Atlassian. You might know them for their software products like Jira and Trello, but what’s less known is their innovative approach to performance goals. Atlassian introduced something called “20% time,” inspired by Google’s famous policy.
The idea is simple: employees can dedicate 20% of their time to passion projects that aren’t necessarily tied to their day-to-day responsibilities. These projects, while not directly aligned with the company’s immediate business goals, tap into personal ambitions and creative energy.
Employees feel more invested in their work because they’re not just pushing the company’s agenda—they’re also achieving personal goals. And guess what? This initiative led to the creation of some of their most successful products, including the Jira Service Desk.
This is a classic example of how allowing employees to align personal aspirations with business goals can fuel innovation and long-term success.
Tracking and Adjusting Goals for Long-Term Success
What happens if goals are set but never CHECKED ON AGAIN? Yes the OBVIOUS, they collect dust in the corner beside that old exercise bike that you were once so excited about! Performance goals must be SMART and tracked, measured, and adjusted frequently in order to take root. This is NOT micromanaging, just a way of being involved in whatever capacity that might be.
For instance, Netflix has its employees establish quarterly goals and then hold them accountable by staying on top of how each goal is progressing. Of course, if something shifts mid-quarter they are not tied to those goals.
In that scenario, there is room to pivot which keeps the process dynamic and relevant. They should check in as part of a “regular cadence,” that’s what the managers at Netflix gloriously and refreshingly refer to as “feedback loops.”
Case Study 2: Basecamp’s Commitment to Simple, Clear Goals
Another example comes from Basecamp, the project management tool known for its simplicity. Basecamp operates with an “anti-hustle” mentality, where the focus is on clear objectives that employees can achieve without burning out.
Employees are encouraged to set goals that are realistic and stress-free. Basecamp’s approach is built on trust—once the goals are set, employees are trusted to manage their own time and progress. There’s no constant checking in or micromanaging. It’s a refreshing approach in a world where “go, go, go” is often the default mindset.
Recognizing and Rewarding Progress
Performance goals should not be something that are set and forget about until the next time we want to use them against someone during a performance review.
The employees require recognition on their way. Recognition or Motivation as human nature dictates are the two sides of the same coin; recognition helps motivate people. Recognition, however, extends beyond bonuses or trophies.
On rare occasions, even a shout-out in the meeting will do the trick. Companies like Zappos, where recognition is part of the culture have this one tradition “The Gong,” where employees gather and ring a gong to celebrate the achievement of one employee. Fun, instant, and congratulatory — for appreciating the progress and not just the end result!
How Technology Can Help Manage Performance Goals
The technology slant! Yes let’s bring that on board. The nature of tracking goals can be difficult if your team is remote especially when different time zones are involved. Luckily, there are many tools to help with that.
Platforms like Asana, Monday, 15Five, or Engagedly help managers and employees follow along with goal progress in real time. This trend puts the individual at an advantage because everyone knows exactly what is expected — there’s transparency. This also drives teamwork because sometimes in order to hit a performance objective, you need that extra hand.
Conclusion
This is not rocket science, but it does take a bit of work to create performance goals that are likely to actually stick. It is to set meaningful goals for the employee and business provide them with the space they need, and follow-up regularly. Employees who feel more connected to their goals, both professionally and personally are likely to see real progress with long-term commitment.
So for your next round of setting performance goals, ask yourself- Does this goal motivate? Does it challenge? Does it make someone care? If your answer is YES then congratulations you’re on the right track, else go read this article again!
FAQs
What is the key reason for failed performance goals?
Failure of performance goals is related to lack of personal relevance, vagueness, and disengagement of the employees without any contribution.
How can a company make the performance goals highly flexible?
Flexibility can be assured with the scheduling of regular check-ins, enabling adjustments of goals according to changes in circumstances or priorities and these will keep the performance goals relevant.
How does peer accountability boost performance goals and success?
Peer accountability nurtures shared responsibility and it makes the employees more dedicated and committed to achieving the goals of being a part of the team.
Give an example of innovative goal-setting practice used by any company.
The “20% time” model is being introduced by Atlassian to enable the employees to dedicate time to their personal projects that transformed into the development of successful products like the Jira Service Desk.
How does technology assist in managing performance goals?
Goal-setting software such as Lattice or Asana incorporates tracking the progress, setting deadlines, and adjusting goals in real-time to make the development and progress more collaborative and transparent.