Set Goals Effectively To Optimize The Performance Review Process

Set Goals Effectively To Optimize The Performance Review Process

Goals are the bedrock of a productive performance review process. When developing goals, two essential aspects come into play: their clarity and objectivity, and their direct contribution to achieving business strategy.

Alignment Through Clear Communication

Establishing alignment starts with clearly communicating strategic business objectives. Expanding visibility to goals set by different departments across the organization further enhances this alignment. The typical process involves departmental managers setting goals for their departments, based on overarching organization-wide goals that support the overall business strategy. Making these departmental goals visible to all managers helps to prevent overlap, reduce conflict, and allows teams across different functions to understand how they support each other and avoid counterproductive efforts. Each manager, in turn, shares the overall goals with their team and collaborates with employees to define individual performance goals and action plans.

Key Job Expectations and Responsibilities

When establishing goals, the primary guide and reference should be key job expectations and responsibilities. Goals should address not only what is expected (quality, quantity, deadlines, cost), but also how those expectations will be met (behavioral aspects, customer service focus). Many organizations choose to incorporate competencies into performance expectations, strengthening the link between individual contributions and the organization's strategic vision and mission.

The SMART Goal Framework

The "SMART" framework provides a robust foundation for writing effective goals:

• S - Specific
• M - Measurable
• A - Achievable/Attainable
• R - Results oriented/Realistic/Relevant
• T - Time bound

Applying these criteria creates goals that are easily understood, visualized, and evaluated. Specificity, measurability, and defined timeframes enable tracking progress. Managers may further refine goals with start and finish dates, along with interim milestones. Goals must be realistic and achievable; unattainable goals can negatively impact employee motivation. Furthermore, goals should consider conditions under the employee's control.

Action Plans and Relevance

While focusing on outcomes is important, the necessary steps to achieve those outcomes shouldn't be overlooked. Action plans that document the steps required can support each goal. Maintaining relevance reinforces the importance of aligning goals with strategic objectives and communicating the value of each goal. Some organizations use SMARTA or SMARTR frameworks, adding an "A" for aligned and "R" for reward, respectively.

Fairness Through Objectivity

Focusing on objective, behavior-based, and observable outcomes that are job-related contributes to a fair evaluation process and reduces discrepancies. Objective feedback, supported by regular documentation, minimizes the potential for disputes. A clear understanding of the organization's overall objectives, goals, and how individual efforts contribute becomes vital. For example, understanding how one's actions support a specific business area makes the impact of missed deadlines more understandable. By using the SMART framework, clarity is provided upfront regarding how employees will be evaluated.