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.