It is just a small step from measuring your performance to the much more dynamic process of driving up performance levels across your business. This involves setting performance targets in the key areas that drive your business performance. Setting targets can be a helpful method to challenge the organization or a specific service area to do better.
Performance targets are a powerful management tool that can help you deliver the kind of strategic changes that many growing businesses need to make. The top-level objectives of your strategic plan can be implemented through departmental goals, and setting targets based on KPIs is an ideal way of doing this. Targets can provide a forward looking perspective and information, not only on the level of activity of a service, but also on whether objectives are being achieved.
Targets could be based on:
Targets can be:
Setting SMART targets
It is crucial that the targets are realistic but at the same time challenging for the organization and its individuals. The targets in other words should be SMART that is Specific, Measurable, Achievable, Relevant and Timed.
Finally, it should be clear what happens if targets are not achieved. If we have a "stick-based" approach, we may not get the benefit of KPIs which is to open up communication and jointly drive improvement. We should have a clear idea as to why scores are low and look at how to best jointly manage and resolve the problems. Shooting first and asking questions later does not help us improve.