With many people and business executives making New Year’s resolutions, today’s topic is about goals and how setting the wrong goals can often undermine becoming high performance.
For example, a business *goal* of +/-10% budget/schedule? What’s wrong with this picture? What’s it saying about an organization who makes a business *goal* out of being within 10% of their budget and schedule?
Does it give customers a warm fuzzy that a business knows what it’s doing when *their* *GOAL* is to come within 10% of what they said they’d do? *THAT’S* supposed to make you feel good?
Shouldn’t goals be something to aspire to? A challenge? And, if getting within 10% of the budget or schedule is an aspiration or a challenge, that’s supposed to be *goodness*?
Such goals are nothing more than an aspiration to be mediocre! An admission that the organization actually has little confidence in their ability to deliver on commitments, to hit targets.
That’s one way to look at it.
Another is to say (what’s probably more accurate) that their estimates are a joke, and that when the “estimate” becomes the allocated budget, what they’re saying is that they’re praying the estimate won’t screw them. Furthermore, it’s a likely reflection that they really don’t know their organization’s true capability in a “show me the data” kind of way. They don’t have data on lead time, cycle time/takt time, touch time, productivity, throughput, defect/muda or other performance-revealing measures.
And so, without real data to instill confidence in capabilities, setting lame goals to hit targets is like many other things such organizations do: they go about business without a clear understanding of what they need to do or what it’s going to take to get the job done. That way, when they don’t hit their targets they can just blame the innocent or find some other excuse for remaining mediocre. After all, how exactly would such an organization expect or plan to hit their targets? Come on! Let’s be real. They have no idea!
Either way, making it a *goal* to do something we *expect* them to do is rather lame!
This year, don’t make lame resolutions, instead, come up with a strategy and a plan to to attain *confidence* in being able to hit specific SMART targets. Then, grow that confidence and narrow the spread of the targets.
