Setting Goals and Objectives August 2016

Introduction Of all the functions involved in management, planning is the most important. As the old saying goes, “Failing to plan is planning to fail.” Setting goals and objectives is the first and most critical step in the planning process. All employees need to know how to set these important performance measurements. This presentation will provide you with that knowledge. Note to Presenter: This sample presentation is intended for an audience of employees at all levels. It is designed to be delivered by an individual who has knowledge of the basics of setting goals and objectives and of the employer’s own policies and practices on goals and objectives setting, tactical and strategic planning, and performance management. This sample presentation must be customized to include and match the employer’s own policies and practices.

Agenda The difference between goals and objectives The importance of setting goals and objectives How we set goals and objectives SMART objectives

The Difference Between Goals and Objectives Although the terms “goals” and “objectives” are often used interchangeably, there is a difference between them: Goals Objectives General Specific Intangible Measurable Narrow Broad Concrete Abstract Tactical—short-range, set by managers to support the accomplishment of goals Strategic—long-range direction, set by senior management

Quiz: Goals vs. Objectives Which of these are goals, and which are objectives? Increase profitability. Improve community relations. Provide short-term disability insurance to employees by midyear. Improve employee computer database management skills. Note to presenter: Ask, “Is this a goal or an objective?” If a goal, ask what the related objective would be; if an objective, ask what the general goal might be.

Questions? Comments?

Importance of Setting Goals and Objectives Setting goals and objectives is the first and most critical step in a company’s planning process. Goals are forward-facing and provide the company with the direction in which it will move. Objectives can be mile markers along the road indicating progress and maintaining motivation.

How We Set Goals and Objectives At [Company Name], senior management refines our corporate goals for the next three to five years on an annual basis as part of the company’s strategic plan. Under our management by objectives (MBO) process, individual managers use these goals to set their departmental objectives and their own objectives, and they collaborate with employees to help develop employees’ individual objectives. We evaluate the performance of managers and employees based primarily on their accomplishment of these objectives.

Questions? Comments?

SMART Objectives At [Company Name], we set SMART objectives: S Specific M Measurable A Achievable R Realistic T Time-oriented

SMART Objectives (cont.) Specific objectives are: Concrete Detailed Focused Well-defined Straightforward Action-oriented

SMART Objectives (cont.) When setting objectives that are specific, ask the following questions: What am I going to do? Use action verbs such as develop, execute, conduct, and build. Why is it important to do this task? Who is going to be involved? When do I want this task to be completed? How am I going to do this task?

SMART Objectives (cont.) Measurements for objectives help you know you are making progress toward completing the objectives. Progress measurements also allow for course corrections along the way for both direction and pace. If you set an objective that is measurable, you will have tangible evidence of completion of the objective.

SMART Objectives (cont.) When setting objectives that are measurable, ask the following questions: How will I know when this objective has been achieved? What measurements can I use? What milestones can I use to track progress toward completion?

SMART Objectives (cont.) Achievable objectives are those that you can actually accomplish (something you can realistically do within the time frame set)—not an aspiration or vision. Achievable objectives need to challenge you but not so much that they are unattainable or cause frustration in being unable to complete them. You need to fully commit to achieving the objectives.

SMART Objectives (cont.) Realistic objectives are those that you have the resources to accomplish, including: Skills. Funding. Equipment. Time. Staff.

SMART Objectives (cont.) When setting objectives that are realistic, ask the following questions: Do I have the resources to accomplish this objective? Do I need to rearrange my priorities to accomplish this objective? Is it possible to complete this objective? How will pursuing this objective affect other performance objectives? Will this objective help meet/support department and company goals?

SMART Objectives (cont.) Time-oriented objectives are those that have deadlines for completion. The time frames create a sense of urgency and lead to action. The deadlines, just as with overall objectives, must be achievable and realistic. For a complex objective, break it into small parts and set a deadline for completion of each phase.

SMART Objectives (cont.) When setting objectives that are time-oriented, ask the following questions: What are the earliest—yet achievable and realistic—dates for this objective to be started and to be completed? Have I included these dates in the statement of the objective? Are there other projects/objectives that must be completed first? Are other individuals or objectives reliant on the completion of this objective?

Questions? Comments?

Quiz What is the difference between a goal and an objective? Why and how does [Company Name] set goals and objectives? What are “SMART” objectives? Note to presenter: Give participants a few minutes to think about and write down their answers these questions. Make sure you have a copy of this slide or write down these questions for your reference. The next three slides are a summary of this presentation AND answers to these questions. Ask participants to share answers to the first question before going to next slide; then ask for answers to the second question before moving to the following slide, and same with the third question.

Summary Although the terms “goals” and “objectives” are often used interchangeably, there are significant differences: Goals are general, intangible, broad, abstract and long-range directions generally set by senior leaders. Objectives are specific, measurable, narrow and concrete. They are short-range plans generally set by managers to accomplish goals.

Summary (cont.) Setting goals and objectives is the first and most critical step in the planning process. Under our MBO process, senior management sets our corporate goals. Individual managers then use these goals to set their departmental objectives and their own objectives, and they collaborate with employees to help develop employees’ individual objectives.

Summary (cont.) SMART objectives are S Specific M Measurable A Achievable R Realistic T Time-oriented

Questions? Comments?

Training Evaluation Please be sure to complete the evaluation sheet that is included in the handouts. I thank you for your interest and attention!