Target Setting
Target setting and success management is crucial for the success of all companies. If you don’t know where you want to be, sooner or later you will be lost. In this article of the series “the little production system” we will have a look at the target setting and how you can evaluate it for your organization.
Definition
Target setting and success management describes a continuous target agreement process, which starts with the company vision and extends to the executing team or employee. Thus all employees work target-oriented on the success of the company.
The targets:
The formation of objectives leads to an orientation towards common process and result objectives
The contribution to the corporate targets is ensured by the creation of measurement variables and continuous control of the achievement of objectives
Every employee recognizes his or her contribution to the achievement of the company's targets and feels committed to "his or her" goal
The achievement of objectives increases motivation and willingness to improve performance
Key elements:
Company vision
Company targets
Strategic objectives
Operational objectives
Result targets / process targets
3-level voting
Interdepartmental coordination
Visualization in the responsible area
Consistent, transparent and standardized system
Freedom of action within the framework of concerted action
Dealing with deviations
Adaptation of the objectives to changing conditions (3 levels)
KPI
Degree of target achievement
Target setting and Measurements level of fulfillment
Level 4
Divisional targets are based on strategic and operational planning The goal formation process is consistent in all divisions. The process is coordinated across all divisions. Action plans are in place at divisional/cost center level to achieve the targets.
Level 5
Target agreement is carried out via 3-level coordination
Goals are coordinated across divisions
Goals are quantified
Individual goals and common goals are in harmony
There are goals for all levels up to the group or employee
At least once a year the goal formation process takes place
Measures to achieve the objectives are defined and documented
Level of fulfillment - Success management
Level 4
KPIs are available. Possibilities for success control are used. Adaptation to changed conditions is carried out in part.
Level 5
Achievement of objectives and progress are reviewed regularly
In case of deviations, corrective measures are implemented and visualized
In the event of changes in the general conditions, the goals are adjusted
Information and communication
Level 4
There is a standardized reporting system. Targets/achievement of targets are communicated and visualized in all areas/cost centers/teams.
Level 5
Visualization of goals, achievement of goals and measures
There is a standard for the confirmation (bottom up) in case of deviations (+/- )
An integrated system has been installed and is used and lived in all areas and levels