How You Set Goals for a High Performance Culture Matters
Some leaders think they must set goals for a high performance culture that are impossible (or almost impossible) to reach in order to motivate their teams to provide maximum effort and peak performance.
Other leaders believe success metrics must be set low enough so that people can consistently exceed expectations without setting themselves up to fail.
We believe that both sets of leaders are wrong.
High Performance Goals Must be “Just Right”
To set goals for a high performance culture, they must be “just right.” Our organizational alignment research combined with twenty-five plus years of helping clients boost their performance tells us that overly ambitious goals discourage rather than encourage greater effort.
Ultra-stretch goals may work for some super-charged salespeople but, in the final analysis, they are counter-productive. The same is true when the bar is set too low.
Impossible to Reach Goals
Here is what happens step-by-step when you regularly set goals that are not achievable.
First, when the targets are not reached, excuses are often made. Whatever the reason for failure — not enough resources, not enough time, or stiff competition — there is usually a lack of accountability — either the leaders who set them, the team that agreed to them, or the people who failed to achieve them.
Second, consistently missing targets set up a situation where failure becomes the norm. Either the goals are not thoughtfully chosen or the team does not do what it commits to doing. The result is a low performing team where there is no accountability and failure is not simply accepted — it is expected.
When goals are set too low, our experience is that performance is almost always “left on the table.” Sure, some may surpass their targets and exceed expectations, but they rarely perform at their peak.
As stated by Michelangelo: “The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark.”
How to Set Better Goals Going Forward
How can you, instead, build a high performance culture where achievement, not failure, becomes the standard? When you set goals for a high performance culture, you need to:
You want to encourage greater effort from your team by asking them to “stretch” a little further each goal setting period with fair, accurate, and relevant goals that are “just within reach” if people perform at their peak.
The Bottom Line
Workplace culture accounts for 40% of the difference between high and low performance. We believe it is a leader’s job to create the circumstances to consistently get the most out of their people in a way that is consistent with the organization’s core values. If leaders push too much (or even too little), teams may not meet their goals.
To learn more, download How Much a Leader Should Push for Higher Performance
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