Similar goals can produce very different results. The way that a goal is written and interpreted is the key. Consider two sales representatives, each who have a goal of increasing sales volume. Potentially, this same goal could lead to the following two outcomes.
Scenario One: A customer comes in to service business A with a problem. The sales representative presents a solution that could be considered non-essential, without explaining that the purchase could be made safely at a later date. This sales representative will perhaps receive a commission and record the sale as a step towards meeting his or her sales goal. At present, the customer is happy with the service, but he learns later that the service was non-essential and as a result ceases to do any further business with this organization.
Scenario Two: A customer comes into service business B with a problem. The sales representative advises the customer that no service is needed at this time, but explains what may be needed in the near future. Thus, no sale was made that day, the sales representative did not receive a sale to record against his or her performance goal and no commission was paid out. The customer appreciates the honest advice and returns to business B for future purchases. Subsequent sales from this customer, over the course of a year, exceed the initial non-essential service.
If we are to ask which approach benefits the company most and which approach benefits the sales representative the most, the answer to both questions should be the same. If the answers are different, then a serious misalignment exists.
The following steps can help ensure business goals and individual goals are aligned.
-clarify not only what is expected, but how it should be achieved
-make sure all employees understand the corporate vision and values
-evaluate employee performance over the long term as well as the short term
-incorporate customer feedback into the performance assessment process
How are goals written at your organization to avoid this type situation?
