When it comes to setting goals and tracking performance, it’s easy for organizations to fall into the trap of focusing on numbers alone. But how do we ensure that our metrics and targets are driving the right behaviors and helping people stay motivated?

• Leading Indicators: Metrics should include leading indicators that people feel they can influence through their work. Otherwise, they risk feeling disconnected and unmotivated and even incentivize actions we don't want.
• Motivating & Realistic: Aspirational organizational targets should guide, but not necessarily dictate, individual performance goals. Goals should be motivating yet realistic, taking into account current context and historical performance.
• Data is Feedback: Data is feedback. It tells us how well we're doing and whether we need to adjust course.

Why Targets Alone Aren’t Enough

Have you ever felt like the goals you’re being held accountable for are out of your control? This disconnect can lead to frustration and even demotivate employees. Worse, it can incentivize behaviors misaligned with what the organization actually values.

For example, when hitting a target becomes the only priority, people might cut corners or focus on short-term fixes instead of long-term improvement. As Stacey Barr, author of Practical Performance Measurement, puts it, “When accountability is implicitly or explicitly defined as hitting targets that people perceive as unfair, people will do whatever it takes to hit the target as a priority over fundamental performance improvement.”

The key to avoiding this trap? Shifting accountability away from simply hitting a target and toward monitoring, analyzing, and taking action based on what the data tells us. This approach not only improves performance but also builds trust and buy-in from staff.

Targets vs. Goals: What’s the Difference?

It’s important to distinguish between organizational targets and individual goals:

• Targets are the north star—specific, measurable objectives that reflect what the organization needs to achieve to fulfill its mission or promise to stakeholders. These are typically stable over time and provide a consistent benchmark for success. Think of them as the tick marks on a dashboard that shows performance trends over the years.
• Individual Goals align with these targets but are tailored to the individual’s role, past performance, and current context. They’re set collaboratively between employees and their managers to ensure they’re realistic, relevant, and actionable.

By grounding individual goals in the organization’s broader targets, but adapting them to the individual’s sphere of control, you create a system where everyone sees how their work contributes to the bigger picture.

Designing Goals That Motivate

When goals feel realistic and within our control, we’re more likely to stay engaged and motivated. Here are some ways to design effective goals:

1. Align Goals with Context

   Individual goals should reflect current realities. For example, if historical performance or unique challenges make a target unrealistic, adjust the goal so it still motivates improvement without feeling unattainable.

   If the target is run a marathon, but I can only run 3 miles comfortably, my goal for next quarter should be work up to 10 miles, not 26.2!