Setting Performance Targets

Targets are an important part of our work life, whether we are setting them or meeting them. There is a science to target setting. Unfortunately the behavioral impact of target setting on performance is underestimated. This can lead to serious consequences such as game playing, overcharging customers, or demotivating competent managers.This book will help you fill the gap in target setting for performance. The pivotal issue in target setting is that it is an art as well as a science. Perhaps more of an art, requiring a balance between the psychologies of the people taking initiatives, the science of estimating probabilities and aligning with strategies, coupled with the motivational effects of incentives.You will also be introduced to some of the important methods in target setting such as forecasting, sensitivity analysis, and probability analysis; all of which include practical examples to show how these techniques can be directly applied. In the end, you'll learn how interrelated the various parts of organizational activities are and how they impact on each other, which is important since target setting must include an understanding of the organizational context (e.g., people, competitive environment, structure, strategy) as well as the impact of incentive compensation and information flows.