How would you rate your organization's goal management efforts? Maybe goal-setting is on the radar for the New Year. Or perhaps your company really rocks goal management with key executive support and high employee engagement. Many of us are somewhere in between these two waypoints.
Whether your organization is just beginning its journey toward better goal management or it's a rock-solid part of your talent development strategy, there are several excellent reasons effective goal management is worth the effort.
The connection between goal management and business results
Research by respected analysts (Bersin by Deloitte, Brandon Hall Group, et al) shows us that effective goal management is a key strategy in driving business outcomes.
Talent development has come a long way in the past ten years as companies seek initiatives that drive performance outcomes. It's not hyperbole to say that goal management is transforming companies in every corner of the globe!
So, why do organizations that adopt goal management perform better than their counterparts who neglect goal management?
In a nutshell, the companies who put goal management first are aligned across a wide variety of characteristics. Employees with goal management initiatives in place:
- Understand expectations
- Work on the right projects
- Help achieve organizational goals
- Engage with their organization at higher levels
Creating an agile workforce for the future
It's no secret that in our global and interdependent economy, the pace of change is relentless. Organizations with agile workforces will be the winners with employees ready to respond rapidly to external and internal changes while remaining aligned.
All companies and organizations must be ready to innovate and quickly react to change such as new technologies, supply chain disruptions, regulatory changes and new or evolving markets, among other fluctuations.
Organizations that can quickly offer needed learning and development (L&D) to their people will thrive. High-performing organizations lead the pack when it comes to measuring the impact of their L&D initiatives, and the evidence lies in their results, reporting year-over-year increases to key performance indicators (KPIs) including revenue, market penetration, employee engagement and retention and customer satisfaction and retention.
Near-term goal setting: the new normal
As most of us know, the annual performance review is increasingly losing ground to the more modern approach of near-term goal setting. With this agile process, organizations can keep up with the pace of the modern global economy when disruptions and innovation occur. This flexibility isn't possible with once-yearly performance reviews because goals are aligned to a "moment in time" that is often outdated within weeks or months.
Do your employees understand how their daily work contributes to organizational success? According to McKinsey, 91 percent of companies that support effective performance management systems say that their employees' goals align to business priorities.
Research by Bersin by Deloitte shows organizations that review their goals quarterly (or more), rather than annually, are more effective at managing costs and have better financial performance.
Organizations that regularly review and revise goals are:
- 45% more likely to have above-average financial performance
- 64% more likely to be effective at holding costs at or below the level of competitors
Remember that all of this happens when employees have a clear understanding of how their work fits into the "bigger picture" and contributes to the larger success of the organization or community.
Ready to get started with effective goal management? Download our ebook, How to Excel at Goal Management now! Discover the goal management strategies high-performing organizations follow and learn how to adopt these best practices in your own organization.