Smart Goals

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A White Paper by: Maj. Gen. BK Bhatia

Accountability of employees is most vital to the growth of an organization. This paper illustrates, with the help of a Case Study, how Goal setting helps an organization to drive performance.

Before the AGM- 2005
Board of Directors found it difficult to face the stake holders, more so the investors. The CEO felt that the company could have done better. Managers at all levels murmured that their subordinates performance during the year has been inadequate. Employees, in general, stated that they had put in their best & had often to work beyond their capacities. “Something has surely gone wrong and someone must analyze it”, said Bobby, the CEO.

Diagnosing the Problem
A study revealed the following problem areas in the organization:

The CEO had not defined any specific objectives to be achieved during the year.

Nothing was quantified as the corporate goals, nor any measures were laid down to monitor performance. No Head of the department knew exactly their deliverables for the year & no one was formally reviewing any progress. Everyone was working hard , but no supervisor in any department was tracking daily/ weekly output from his/ her subordinates. Every one was over busy with routine activities & no one could specify what could not be achieved during the month. There was an all pervading sense of complaisance amongst the employees that their output was far more than their immediate competitor.

Management Initiatives
On advice from the Consultant, the management decided in favor of laying down SMART goals for the company: a set of objectives which were Specific, Measurable, Achievable, Reviewable & Trackable. While they were not immediately prepared to introduce the Balance Score Card (BSC) approach, which the Consultant had recommended, the management decided in favor of the following mechanism to launch their improvement initiatives:

Mandatory Goals...
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