1. Setting Performance Objectives/ Targets
Dr. Fred Mugambi
JKUAT

2. Outline Understanding targets Why set targets? When to use targets
How to set targets
Monitoring Progress
Problems and how to get around them

3. Understanding targets
A performance target represents the level of performance that the organisation aims to achieve from a particular activity. … Such targets should be consistent with the ‘SMART’ criteria
It means the level of performance in the exercise of a function that a Best Value authority is expected to achieve, as measured by reference to the performance indicator in relation to that function.”

4. Contd.
Before one can set a target one needs to understand the overall target area properly
For instance, only set a marketing performance target if you understand the market, internal resources available and the capabilities of your sales teams properly

5. Characteristics of Targets
Targets are time bound
They define a ‘desired’, ‘promised’, ‘minimum’ or ‘aspirational’ level of service
They are measured via performance indicators.
They are set where there is an identified need to improve performance
They identify a level of performance you want to achieve

6. Selecting Targets: Key Questions
Are these targets achievable?
Are they too easy?
Are they too difficult?
Are they relevant?
Would any other target (eg. industry average as opposed to our last year’s performance) better serve our purpose?

7. Contd. Are our targets too detailed?
Are our targets too broad so that they cannot be related to the effort involved?
Are the targets related to our efforts or are they influenced more by external factors?

8. Types of Targets Type Description Stretched target
Where you would like to, and should be able to reach
Standard target
Where you are expected to reach, and will be held to account for not
reaching
Forecast
Target
Where you are expected to reach if you carry on as at present

9. Why set targets?
Targets help to drive improvement in a number of ways. They:
Prioritise –If targets are set in a limited number of areas, that can indicate that those areas are of higher priority
Help to define an agreed direction – they show more precisely where an authority is trying to get to
Focus attention and resources on achieving the target
Motivate staff – if they are challenging but realistic, and there is a sense of ownership of them, they can be motivating.

10. Contd. Effective targets need to be realistic but challenging.
Targets that are too difficult and therefore unrealistic debilitate rather than motivate and those that are too easy lead to complacency.
It is acknowledged that setting a realistic but challenging target can be a difficult balance to achieve.
They should encourage improved performance and motivate people where there is a probability of success.

11. When to Use Targets Use targets when:
You can positively affect the outcome
There is enough predictability in the area of performance for a target to be meaningful
A target will help focus attention on a particular area of importance
A target will motivate the people working in this area to put more effort into finding ways of improving it
A target would be helpful to demonstrate to the rest of the organization, the public and other stakeholders that this is regarded as important and there is a commitment to deliver.
It will be possible to monitor progress against the target without disproportionate cost

12. How to Set Targets Final checks- double check everything
Know what outcome you are trying to achieve
Clearly define where you are now and where you want to get to
Identify measures
Set targets in consultation with staff, Members and stakeholders
Action plan to achieve the target
Final checks- double check everything

13. Monitoring Progress Target setting is an imperfect process.
It is hard to be sure whether targets are really realistic.
That is why you need to monitor performance over time, as well as achievement of targets.

14. Tools for Monitoring Progress
Comparisons are an important tool for monitoring progress
One can also monitor progress using pre-developed action plans
One could also develop indicators against which to check progress

15. Challenges of Setting Targets
Lack of ownership of targets
Unreliable data
Perverse incentives
Ambiguous indicators
Distorted activity
Conflicting targets

16. Conclusion
Setting targets is important, but implementing strategies prudently to achieve set targets is even more important
Closely monitoring activities to ensure that it remains on track to achieve targets is important

17. End