Performance Target

If last month's edition of Human Capital, have discussed the main function of a leader is to motivate employees, in this edition of the Leadership Series, will be translated leader task is no less important: making performance targets. Lots of usability rather than performance targets.

First, it can be used by leaders to make sure the organization / employees achieve objectives / goals that have been agreed. Leaders can also use the target compared with the target company to other companies, including rival firms (benchmarking). And one of the important of the functions of performance targets is to avoid misunderstanding between the leaders and their employees, especially at the end of the year, when they mengkilas back (review) the work of employees. If no target or a clear work plan, and the result is less satisfactory final work, leaders and employees can 'recriminations' or seek 'scapegoat' for any errors.

There is no 'step-by-step' process that is always done the same leaders in making performance targets for employees. Every employee and works plans would vary depending on the department, position, job function, tenure, etc.. However, there are principles that can be used leaders to create an effective performance targets, both to target individual employees (eg in making the purpose / goal of work at the time of performance planning / review), or to target the department / organization (eg when making business planning). The principles in creating effective performance targets are: SMART (Specific, Measurable, Agreed, Realistic, Time-Bound).

Specific - Target of a plan must be clear and spesifi k. So that the employee or organization is not confused in doing his job. Specific not mean to be complicated, sometimes even on the contrary, the purpose of which spefi sik usually very clear and straightforward. Jack Welch, former GE's legendary leader, make the performance targets for each business unit with specific and very short: Each business unit of GE should be number one or (at worst) is the industry's number two respectively. If not, GE will close the unit, or sell to another company. With the performance targets are clear and specific, do not be surprised if GE became leader almost in all industries that the company is located: GE Engine, Finance / Capital, Power, including the NBC television.

Measurable - There is no point in making performance targets, but can not be measured later. Knowing how to measure the performance of employees is not only important at the end of the year (when the performance review), but more importantly during the process is still running. Performance targets should be divided and can be measured each quarter. So that leaders can react appropriately every three months, to ensure that the performance of the organization / employees in the 'path' is true.

Agreed - Target course work must be understood, discussed and agreed by both parties (the leader and employees). As mentioned previously, there will be no finger pointing if all targets have been approved previously. Although performance targets already agreed by all parties, does not mean the target can not be changed. Leaders must be flexible and wise to change the target (to be more easy / difficult), in accordance with the conditions of employees, a state enterprise and market situation. For instance, during the economic crisis in Indonesia ago, started in 1998, many CEOs have to lower the company's business target, although this target has been approved by the Board of Directors.

Realistic - Performance targets must be realistic as possible. If the leader does not mean only 'dream' only, and if the target does not make sense, even frustrating all employees and organizations. Realistic targets are not necessarily difficult or interesting. To improve employee performance, leaders must create a work plan that is realistic, but also not easy to achieve (challenging). Even the effective leader will make the performance targets that the term BHAG [read: bihek, abbreviation: Big hairy audacious goals]: a goal / target that is very 'big ... hairy ... and challenging'. By BHAG, the leader will motivate and influence employees that they are like a 'knight' who have 'beat' of a goal / target that is imagined as monsters / creatures that big ... hairy ... and challenging.

Time-Bound - Finally, leaders must create a 'deadline' when performance targets to be achieved. Without clear information on time, leaders will be very difficult to manage performance organization / employees. This section (Time-Bound), the importance of priority skills / time management a must-have leaders. Each leader must act as a 'trainer / coach' in a game, which should lead players (employees), to defeat your opponent the match (competitor), within a specified time (deadline).

With these SMART principles, an employee will be able to run an organization with clear performance targets because they know what must be accomplished (specifically), knows how to measure performance (measurable), has been approved by all parties (Agreed), the target rather than being -no (realistic), and knowing when the target should be achieved (time-bound). Therefore, effective leaders will always make the performance targets are SMART.