PERFORMANCE OBJECTIVES

When, writing an objective do so in a way that
will set out clearly the:-

Objective

Action to be Taken

Measure for Success

Timescale

Avoid writing phrases like ‘To be responsible for.....’.
The aim should be for all of the performance objectives
to lead to an End Result. Action verbs can be used to
write more positive Main Job Tasks.

KEY DUTIES AND RESPONSIBILITIES

Most jobs can be divided into half a dozen Key Result Areas. These KRA’s are often expressed as duties and responsibilities in a Job Description. In order to concentrate effort on achievement it is necessary to describe each KRA in terms of the required result and to decide which are the critical tasks.

Key results are concerned with aims rather than the process. The defining of each person’s KRA’s and the setting of priorities is an important part of delegating responsibility. If a job holder cannot achieve a target because it is not his responsibility, then it is an invalid target.

In defining KRA’s, bear in mind that:

They should be positive and concerned with the required result rather than with the process of achievement.

They should be realistic and achievable - taking into account the possible constraints on the job. They should express what is expected not what is hoped for.

They should be within accountability, thus no two job holders should have the same targets unless their jobs are the same. It is an object of the exercise to reduce overlap and ensure that accountability for jobs is clear. A senior manager will have broad aims which will be more specific for each of his subordinates.

The job specific KRA’s should number no more than six, otherwise the job holder will be unable to concentrate on them without excluding some.

Example:

If a job holder has finance (income and expenditure) as one of his KRA’s then it may be possible to set an overall target such as:

Finance:

To agree a budget with superior for income and expenditure and to keep within this budget.

This overall target may then have to be broken down into more specific measures, according to the importance of the KRA, knowledge of past performance, and the degree of sophistication of measurements available

STANDARDS OF PERFORMANCE

When aiming at any objective the job holder must know what result will spell success. Some objectives may define the required result, where this is not so then the job holder must be given a yardstick by which he can assess his performance seeing whether he is achieving or falling short of his aims.

Standards of performance are the means of specifying and quantifying the exact nature of an objective. They should provide the answer to ‘how do I know when I am fully achieving my objectives’. When setting standards it helps to think of each standard starting with ‘The standard has been achieved when........’.

Standards must be in concrete terms rather than woolly generalities. Even when setting standards in terms of the quality of results the job holder must be given guidance as to what is expected.

When setting standards of performance bear in mind:-

They should be quantified in terms of cost, time, quantity, quality. Where possible mention figures or percentages, and define any increase or decrease expected.

Standards are essentially long term and should only be changed when the company’s needs or circumstances have changed.

They should be realistic and achievable, related to past events and current constraints and leave room for improvement above standard. Setting the standards for the first time may require a tentative approach.

They should be specific, avoiding terms like good, average, maximum, minimum.

They should not reflect the job holders capacities, except in the sense that you may allow different people differing time spans to reach the standard.

They should be within the control of the job holder.

They should cover the complete objective. Where an objective has several important contributory factors, it will be necessary to set standards for each factor, to ensure that the job holder does not complete a single standard at the expense of the remainder of the objectives.

OBJECTIVE

To achieve motivation, high performance and thus profitability it is necessary that each executive knows what is expected of him and is encouraged to give of his best.

In this way every executive can focus on his contribution to achieving business objectives. Both he and his boss can be clear as to the contribution expected and can performance against set standards.

To do this the executive’s job is down into:

Key Result Areas - each stated as an objective

Standards of Performance - yardsticks against which achievement can be measured

Targets - which focus attention on areas for improvement/development.

To be effective at a company level, objective setting should flow right down the management line, starting with the board. However, for the manager, objective setting is vital if he is to fulfil two of his most important responsibilities, helping staff to improve their performance, and giving them feedback.

Such an exercise can take place throughout a company or just in departments. The key determining factors of success are:-

The commitment of the senior executive to the approach.

The division and delegation of the tasks such that executives have responsibility and authority to achieve results in their areas.

Regular review of objectives, standards and targets

MORE INFORMATION
If having read this guide you would like to discuss how we may be able to help you, please call us on (01373) 454576 and speak to Peter Beech-Allen, or E-mail a request to us for further information.