Unveiling a fresh perspective on goal-setting, we delve into why FAST goals may outshine SMART ones. We explore the dynamics of these methodologies, their strengths, and potential weaknesses, offering a comprehensive understanding of effective goal-setting strategies.
Four core principles underpin effective goal systems
Goals should be embedded in frequent discussions
- ambitious in scope
- measured by specific metrics and milestones
- transparent for everyone in the organization to see
- FAST goals help organizations improve along multiple dimensions at the same time
- By making goals transparent, companies enable employees to align their activities with corporate strategy
Discuss Goals Frequently
Goals should serve as a framework that guides key decisions and activities throughout the year
- One way to make goals more relevant is to set them quarterly rather than annually
- What really matters is whether goals shape the key discussions for getting work done
- Feedback and coaching sessions provide another opportunity for managers and employees to discuss goals on an ongoing basis
Set Ambitious Goals
Goals should be achievable and realistic
- Ambitious goals minimize the risk that employees will sandbag by committing to overly conservative goals they are sure to achieve
- When the gap between goals being set and current reality is wide, organizations need to search for creative or innovative ways to achieve their ambitious, overall objectives
- Financial rewards are not the only way to boost performance of an individual or team.
- Ambition is fiendishly difficult to measure. You can usually observe only what was achieved not what was possible
Make Goals Transparent
Research suggests that employees across a wide range of organizations prefer transparent goals
- Making goals public can boost performance by introducing peer pressure, showing employees what level of performance is possible, and helping them locate colleagues in similar situations who can provide advice on how they can do better
- Clarity on how their work contributes to the success of the organization as a whole is one of the top drivers of employee engagement
- Unfortunately, corporate goals are poorly understood in many companies
- Sharing company goals publicly cannot guarantee that employees will align their objectives to the company’s strategy
- Transparency, in short, can foster strategic alignment without resorting to a time-intensive process of cascading goals down the chain of command
Make Goals Specific With Metrics and Milestones
Intel implemented Intel Management by Objectives (OKRs), which required employees to translate their goals into concrete actions and metrics to clarify how they would achieve their targets and measure progress along the way.
- OKRs consist of two parts: Objectives, short descriptions of what you want to achieve, and objectives, short quantitative metrics or milestones that specify the steps required to achieve the goal
- Some companies use metrics or key performance indicators (KPIs) instead of key results
- The discipline of translating goals into metrics and milestones can enhance the performance of individuals or teams
- Linking goals to key results makes it easier to adjust as circumstances change, without losing sight of the company’s must-win battles
