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Setting Targets Presentation

The document discusses setting performance targets and indicators. It defines targets as quantified results or objectives that are agreed upon and aimed to be achieved at a future date. Indicators are measures that describe how well an objective is being met and show progress towards targets. The document explains the importance of setting clear, specific, measurable, achievable, realistic and time-bound targets and indicators. They help prioritize resources, define direction, and motivate staff. Some challenges in setting targets include lack of ownership, unreliable data, limited resources, and targets working against each other. Performance is best monitored regularly through indicators to ensure targets are met.

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Jaseme Otoyo
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49 views

Setting Targets Presentation

The document discusses setting performance targets and indicators. It defines targets as quantified results or objectives that are agreed upon and aimed to be achieved at a future date. Indicators are measures that describe how well an objective is being met and show progress towards targets. The document explains the importance of setting clear, specific, measurable, achievable, realistic and time-bound targets and indicators. They help prioritize resources, define direction, and motivate staff. Some challenges in setting targets include lack of ownership, unreliable data, limited resources, and targets working against each other. Performance is best monitored regularly through indicators to ensure targets are met.

Uploaded by

Jaseme Otoyo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 21

Setting performance Targets

and
Indicators

1
Session Objectives

 Define the “Performance targets and indicators.”

 Explain the importance of setting targets & standards.

 Develop performance targets and indicators

 Discuss the challenges experienced in setting targets

and standards
2
Quote

All good performance starts with clear goals”.


- Ken Blanchard
Barriers to Strategy Implementation
The Vision Barrier

Only 5% of the work force


understands the strategy

The Management Barrier


The People Barrier
9 of 10 companies 85% of executive teams spend
Only 25% of managers have
fail to execute less than one hour per month
incentives linked to strategy
strategy discussing strategy

60% of organizations don’t link


budgets to strategy

The Resource Barrier

Today’s Management Systems Were Designed to Meet The Needs of


Stable Industrial Organizations That We’re Changing Incrementally

You Can’t Manage Strategy With a System Designed for Tactics


Define the following concepts

Targets Indicators

5
Performance Targets

 “What we are aiming for?”


 Are quantified results or objectives.
 They are discussed and agreed upon and are to be
attained at a future date.
 They should be clearly communicated.
 They provide the basis for identifying problems and
moving towards solutions as early as possible.
Targets & indicators

 Specific
 Measurable
 Achievable as per current resources
 Realistic
 Time-bound

7
The Results Chain
Sources of Performance
Targets and Indicators

a. Job descriptions

b. The purposes of the job function

c. Performance contract if any signed

d. Departmental objectives

e. Individual work plans


9
Importance of targets

They help :

Prioritize resources on achieving targets


Help to define an agreed direction


Motivates staff

Putting national performance standards into a local context;


Help organizations to develop a culture of continuous


improvement;

Providing a route for involving the public in planning services.


10
Characteristics Desirable for
Performance Standards

 Realistic but challenging


 Acceptable to all concerned
 Objective where possible
 Ensure that you agree on subjective standards.

11
Performance Indicators

 It is a measure that describe how well an objective is being met.

 Are benchmarks of progress towards the achievement of the

targets, standards or the lack of achievement of them.

 They informs the appraise and the appraiser whether the

appraisee has performed the tasks well enough or how far

he/she has progressed towards achieving the targets.


12
Importance of performance indicators

 Provides systematic collection and analysis of data from


comparable organizations.
 Examples are: standards of service delivery, processing times,
speed of response.
 Helps set realistic standards and targets
 Need to take account of differences in: - resources, technology,
barriers among others.
 Also useful within organizations for comparison.
13
Group Exercise

14
Monitoring Performance

 Monitoring performance of individuals should be done regularly.

 This ensures that performance targets and standards are

achieved.

 There is on-going appraisal.

 There is the mandatory mid-year appraisal.

15
Types of Performance Measures

 Efficiency measures - express the relationship between


inputs and outputs (How well the process performs with the
given inputs).

 Effectiveness measures - express the relationship between


outputs and outcomes (How the process contributes to
business’ strategic, organizational or policy goals).

 Economy measures - express the relationship between


resources and inputs (The cost of inputs).

 Financial measures - express aspects such as income, added


value, return on investment and costs. 16
Types of Performance
Measures
 Output measures - express aspects such as units of
production, new accounts or new customers.

 Impact measures - express aspects such as reaching a


standard, changes in behavior and innovation.

 Reaction measures - express aspects such as judgment by


colleagues and customers.

 Time measures - express aspects such as speed of response,


turnaround time, backlog and delivery time
17
Discussion Question

 Identify the challenges likely to be encountered in


setting performance targets, indicators and
standards.
Challenges likely to be
encountered

 Lack of ownership of targets.


 Unreliable data.
 Lack of resources-finances, time and human
 Distorted activity.
 Confusion over terms.
 Targets working against each other.
 Wrong kind of indicators. 19
Parting Shot

 All of us perform better and more willingly


when we know why we're doing what we
have been told or asked to do.
Zig Ziglar

20
The End

21

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