Monday, November 12, 2012

Measureable Performance Objectives In Business

This CEO Blogger comes from a teaching background where we were taught about implementing behavioral objectives.   In business, this would translate to Performance Objectives, either for a department, division, subsidiary, or employee that are completely measurable.   So to put this simply, if the objective is to achieve cost savings, there must be a basis for measuring success.  

Very often, when management is asked to formulate Objectives, they are often very general and some times just feel good Objectives.  That does not work for me.   Since we measure Objectives by specific ratings including a Met Some, Met, Exceed or Far Exceed Rating, I want to see how these standards are met, or not met as the case may be.   I don't like subjective feel good Objectives.

Managing by specific Performance Objectives is the only way to determine if the company's goals are being achieved.   This system is also a pay for performance basis for both merit increases and any bonus program.   Years ago when I was a young manager at a major company,  I had no idea how or why I earned bonus because there were no specific Objectives in place.  It was always nice to get the money; but in many ways instead of buying good will, it bought bad will because I could never tell how my efforts contributed to the company's success.   Defined Performance Objectives that are measurable is the best way to manage any company. 

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