6: define employee performance goals

The key question that all employees want answered is: "what do you want me to do?"

Clearly defined corporate goals make this question easier to answer. High level goals provide a reference point for managers and employees to articulate those actions that will or will not contribute to the company's aims.

Nevertheless, that's not nearly enough. Managers need to translate high level goals into meaningful personal initiatives for their staff; only by doing this will real progress be made. That requires managers to think and act strategically in their allocation of resources and direction of effort.

Organisational effectiveness is improved by stating objectives clearly, communicating them down the line, translating these into meaningful actions for individuals, tracking people's progress and helping them when things get tough.

It's not just that personal goals should be "SMART" (stretching, measurable, achievable, relevant and timebound) they should be focused primarily on tasks that are over and above the normal requirements of the job. They should be strategic and meaningful steps towards the achievement of higher level KPIs.

The nature of personal performance goals should show the difference between business-as-usual job content - for which salary is paid - and additional initiatives the success of which will merit extraordinary reward through the company's bonus plan.

The linkage of personal performance with reward also requires careful thought. The results of step 5 (define relationship of pay to performance) will have a significant impact on the way that the personal goal setting process is organised and documented.

Step 7 >>

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