Setting targets for next 12 months
Putting performance measurement systems into place and setting
targets is one way to keep track of your business progress,
challenge your business to do better and give your employees
something to aim for. This guide looks at how to plot targets for
your company strategy over the next 12 months.
- Achieving targets
- How to manage targets
- Assessing progress
The first step to achieving targets is to identify the key areas
that influence your business performance. These can be grouped into
certain areas, such as market position, competitive performance,
product or service development and customer satisfaction. Set
targets that can be accomplished in a certain time frame, that are
measurable, specific and realistic. You need to strike a balance
between ambition and what is realistically feasible - set the bar
too high and you risk failure and demotivating employees. Keep a
list of targets visible as this will help to motivate you and
others in your business.
- Targets need to be measurable, specific and realistic
- Keep a list visible to motivate and inspire employees
How to manage targets
Time management is a crucial part of achieving targets. Take
time to set your goals and to communicate these clearly to your
team. Assigning responsibility for targets is also vital - consider
setting your staff monthly customer targets or targets for volumes
of repeat business, for example. Be prepared to invest in target
setting and make the necessary resources available when needed.
Ensure you discuss all targets with staff before implementation, as
this will give them the opportunity to discuss any questions or
raise concerns, as well as giving them a sense of ownership.
- Time management is crucial for organising targets
- Discuss all targets with staff before implementation to flag up
Milestones and key performance indicators (KPIs) are a good way
to measure target progress. With hindsight, your initial targets
may not turn out to be the best ones, so it is important to carry
out regular reviews so you can adjust your targets accordingly.
Consider carrying out weekly reviews to assess that week's
performance against the monthly target, enabling you to add new
objectives if there are likely to be any problems.
- Use milestones and KPIs to monitor progress
- Carry out weekly reviews if necessary
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