Written by

Bernard Marr

Bernard Marr is a world-renowned futurist, influencer and thought leader in the fields of business and technology, with a passion for using technology for the good of humanity. He is a best-selling author of 20 books, writes a regular column for Forbes and advises and coaches many of the world’s best-known organisations. He has over 2 million social media followers, 1 million newsletter subscribers and was ranked by LinkedIn as one of the top 5 business influencers in the world and the No 1 influencer in the UK.

Bernard’s latest book is ‘Business Trends in Practice: The 25+ Trends That Are Redefining Organisations’

View Latest Book

Follow Me

Bernard Marr ist ein weltbekannter Futurist, Influencer und Vordenker in den Bereichen Wirtschaft und Technologie mit einer Leidenschaft für den Einsatz von Technologie zum Wohle der Menschheit. Er ist Bestsellerautor von 20 Büchern, schreibt eine regelmäßige Kolumne für Forbes und berät und coacht viele der weltweit bekanntesten Organisationen. Er hat über 2 Millionen Social-Media-Follower, 1 Million Newsletter-Abonnenten und wurde von LinkedIn als einer der Top-5-Business-Influencer der Welt und von Xing als Top Mind 2021 ausgezeichnet.

Bernards neueste Bücher sind ‘Künstliche Intelligenz im Unternehmen: Innovative Anwendungen in 50 Erfolgreichen Unternehmen’

View Latest Book

Follow Me

How To Set Performance Targets That Work

2 July 2021

“Aim for the moon. If you miss, you may hit a star.” A famous quote by self-help business guru W. Clement Stone. It says a lot about why targets are important to every company and individual – and why it’s important to push yourself to aim high.

In business terms, a target is a goal that the company is aiming to reach. But targets don’t just tell us what we are aiming for – they let us measure the distance by which we fall short, and the amount of work we need to do to make it up.

You need to have a target in order to judge whether you are making improvements. But how should you set targets? Well, aiming high is always a good start, but here are some other tips to consider:





Be specific

The more specifically defined your target is, the clearer you will be about what you are trying to achieve, to everyone involved. For example, “To increase sales by 5% over the next 12 months” would be a far better target than “To increase sales”.
Being as specific as possible sets a very clear picture of what you are aiming for and focuses attention on hitting goals. Would “Increase sales by as much as possible” not be a better target? No! That implies that maximum sales must be achieved at all costs – regardless of the detrimental effect it could have on other targets, e.g. customer service or quality related targets. Setting a specific target (which must also be realistic – see my next point) removes ambiguity and means everyone knows what they are trying to achieve when they get to work in the morning.

Be realistic

Setting unrealistic targets is a recipe for disaster. You, and anyone working with or for you, know what your capacity is, and what is or isn’t achievable. Your targets should always be stretching, and challenging – but not so far that they seem hopeless, as that will just be demoralising.

Being realistic means taking into account what is and isn’t possible. You can look to your competitors or industry benchmarks for guidance, but always be aware of your own capacity. That isn’t to say that capacity can’t be increased – in fact hitting a vital target could be a very good reason to increase capacity, by investing in more workers and equipment or by improving the way things are done. But setting targets which can’t (or are highly unlikely to) be achieved at current capacity and without willingness for extra investment in capacity will lead to failure.

The balancing act required here, in order to meet the lofty expectations set out by W. Clement Stone, while remaining realistic, is a big part of what makes a good target-setter!

Support top-level targets with lower level targets

Targets can be outcome-based (i.e. sales/profits) or operational – such as ensuring the quality of your products during manufacture. If your top-level targets are not supported throughout the delivery process, you will be unlikely to achieve them.
To set, and meet a challenging top-level target such as increasing company profits, other targets must be met, right across the delivery chain, from customer satisfaction to product quality to staff engagement. Any inefficiencies in the system will drag down the top-level results, making it harder to hit your target. Also, setting targets for top level outcomes without monitoring the achievement of lower level targets can cause frustration.

Gamify!

Make targets fun! In short, the idea is to take cues from the compulsive behaviour often elicited from people through games, particularly video games. Point scoring, bonus goals and a structured reward system all act as psychological “hooks” which persuade people to engage.

Business Trends In Practice | Bernard Marr
Business Trends In Practice | Bernard Marr

Related Articles

The 7 Biggest Business Challenges Every Company Is Facing In 2023

In this article, we look at the seven biggest challenges businesses will be facing in 2023.[...]

Is This The Downfall Of Meta And Social Media As We Know It?

Meta Platforms – the company formerly known as Facebook – is cutting its workforce by 13% – equating to a loss of 11,000 jobs.[...]

The Top 5 Technology Challenges In 2023

When it comes to technology, rapidly changing conditions pose unprecedented challenges that must not be ignored.[...]

How To Build A Positive Hybrid And Remote Working Culture In 2023

In 2023, building a culture that allows a business and its employees to thrive while working remotely is about more than surviving in the “new normal” or post-pandemic society.[...]

12 Practical Steps To Handle Change At Work

Whether it's driven by new technology, shifts in the market, expansion, or cutbacks, work is constantly changing.[...]

The Top 11 Virtual Networking Tips To Boost Your Career

But in a post-pandemic world where nearly all of our networking is done online, what are the best ways to “meet” new people and build those connections?[...]

Stay up-to-date

  • Get updates straight to your inbox
  • Join my 1 million newsletter subscribers
  • Never miss any new content

Social Media

0
Followers
0
Followers
0
Followers
0
Subscribers
0
Followers
0
Subscribers
0
Yearly Views
0
Readers

Podcasts

View Podcasts