GOAL SETTING:

A Fresh Perspective
Table of contents

Table of Contents
Using This Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Section 1: Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Section 2: Cascading and Aligning Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Practice: Cascading Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Practice: Aligning Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Section 3: Writing SMART Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Practice: SMART Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Section 4: Goals For Business Results and Employee Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Section 5: How Goals Connect to Performance Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Section 6: Goal-Setting Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Practice: Goal-setting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Section 7: Ideas & Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Goal Setting: A Fresh Perspective | 1

Using This Guide

“The world makes way for the man who knows where he is going.”
Ralph Waldo Emerson

Replace “man” with “organization” in this quote from Emerson, and you have the rationale for why
an organizational focus on goal setting is so critical. An organization in which every employee
understands and acts upon his or her part in achieving the business strategy, in which everyone is
traveling in the same direction, is unstoppable.

This new guide from Taleo provides an overview and refresher about setting great goals. Here,
you’ll find background and ideas on how to establish a goal-setting approach in your organization
designed to guide all employees toward delivering your company’s strategies.

This guide is appropriate for use by HR to support performance management policymaking and
design, by line managers to understand and execute their role in the guiding their team members as
they set their goals, and by individual employees as they write strong, stretch goals that will help
move the business forward.

All of the content in this guide is free for you to use as you see fit, with appropriate credits cited.
Think about customizing the language to your organization’s culture. Localize the exercises and
examples to your business. Make the content work for you in executing a consistent and effective
goal-setting approach across your organization.

Goal Setting: A Fresh Perspective | 2

 section
1 Introduction

Where goals fit into the performance management process

Goals launch the annual performance journey; if you step off in the wrong direction, you’ll never reach the
destination you’re targeting.
“If you don’t know where you
are going, you’ll end up
someplace else.”
Yogi Berra

Development
Planning

Compensation
and reward

Performance
appraisal
Informal,
in-the-moment
feedback

Formal
coaching
Quarterly
Set SMART check-ins
goals
y
eg
rat
St
ss
s ine
Bu

Goal Setting: A Fresh Perspective | 3

 section 1 Introduction

Why are great goals more important than ever to business? The Gallup Q12®
Goal setting, given high priority and approached consistently throughout the organization, is the mechanism 1. I know what is expected of me at work.
by which the business delivers results against its strategy. Improved shareholder value, greater profitability,
increased revenue, inspired innovation—none of these can be realized without an organized process that 2. I have the materials and equipment I
need to do my work right.
deconstructs strategies and cascades relevant and measurable elements of those strategies appropriately
through the workforce. 3. At work, I have the opportunity to do
what I do best every day.
Great goals offer significant benefits to the organization. They:
4. In the last seven days, I have received
• Add a needed measure of organizational discipline that keeps everyone at every level focused on the same recognition or praise for doing good work.
destination. 5. My supervisor, or someone at work,
• Keep employees engaged, because employees know what is expected of them at work. Through rigorous seems to care about me as a person.
analysis of research conducted over 30 years with 17 million employees, the Gallup Organization identified
6. There is someone at work who
12 core elements that best predict employee and workgroup engagement and performance. Of those encourages my development.
Q12® statements, Gallup found that “I know what is expected of me at work” is fundamental.1
7. At work, my opinions seem to count.
• Allow accurate forecasting of resource needs, foster the efficient use of those resources, and avoid costly
stops and starts and changes in direction. 8. The mission or purpose of my company
makes me feel my job is important.
• Keep the organization competitive in both the business marketplace and the employee marketplace.
These benefits are as critical to the success of small businesses as they are to large enterprises. 9. My associates or fellow employees
are committed to doing quality work.

10. I have a best friend at work.

11. In the last six months, someone at work

has talked to me about my progress.

12. This last year, I have had opportunities

at work to learn and grow.

1
Harter JK, Schmidt FL, Killham EA, Agrawal S, Q12® Meta-Analysis, The Relationship Between Engagement at Work and Organizational Outcomes,
[Link], August 2009.

Goal Setting: A Fresh Perspective | 4

 section 1 Introduction

Why are great goals important to employees?

Goal setting is critically important to individuals and their managers. Gallup found that knowing what is expected
of them at work was critical to employees remaining engaged in their work. Other researchers point out additional
benefits of setting great goals.

In A Theory of Goal Setting & Task Performance,2 Locke and Latham cited Locke’s research showing that specific
and challenging goals led to better task performance than vague or easy goals. They not only confirmed the link
between goals and performance at work, they went on to outline five characteristics of an effective approach to
goal setting: clarity, challenge, commitment, feedback, and task complexity. Ultimately, these principles evolved
into the SMART approach that companies are still refining today.

Mihaly Csikszentmihalyi reaffirmed the value of challenging activity to people in all aspects of their lives, including
work. He demonstrated that people are happiest when they are in a “flow state,” and that happens when they are
so absorbed in an activity that nothing else seems to matter—strong support for specific, challenging goals.3

How else do goals benefit employees? Making progress toward goals and achieving them foster both satisfaction
and self-confidence. Goals also promote planning, and along with plans, interaction between managers and direct
reports and among teams to align plans, monitor milestones, and make course corrections when needed.

What do great goals look like?

An effective and consistent approach to goal setting includes three facets:

1. Goals should be, at a minimum, SMART: specific, measurable, attainable, relevant, and timely. We’ll look later
at ways to enrich SMART goals and customize this approach to the organizational culture.
2. Goals should be manageable in number. Five or six meaningful, stretch goals are sufficient to challenge
employees and keep them engaged in their contribution to the business. Adding more goals is likely to have a
negative impact on productivity and derail progress toward achieving any of them.
3. Goals should address both business results and personal development.
Each year, the goal-setting process establishes a new “contract” between employee and manager; both should be
equally invested in achieving the desired results. Well-written, regularly-monitored goals provide the framework for 2
A Theory of Goal Setting & Task Performance. Locke, Edwin A.;
accountability and the basis for productive performance conversations between managers and employees. Latham, Gary P. Englewood Cliffs, NJ, US: Prentice-Hall, Inc. (1990).
Flow: The Psychology of Optimal Experience. Csikszentmihalyi,
3

Mihaly. New York, NY, US: HarperCollins Publishers (1990).

Goal Setting: A Fresh Perspective | 5

 section
2 Cascading and Aligning Goals

“Teamwork is the ability to work together toward a common vision. The ability to
direct individual accomplishments toward organizational objectives. It is the fuel
that allows common people to attain uncommon results.”
Andrew Carnegie

The best way to make sure you’re traveling in the right direction is to have a map. Your company’s business
strategy and the goals of your business unit, division, department, and/or team provide guidance about
where your goals should be heading.

Cascading goals
The goals cascade is really a process of deconstructing and translating goals from one level of the organization
to the next. It is the manager’s role to describe the contributions that members of his or her team can make
to delivering results to the next level up. Managers should take care that employees are able to achieve their
goals:

• The employee needs to be able to do the work; people can’t achieve a goal that is not within their scope of
influence or current capability.
• The employee must have the tools, resources, and access required to get the work done.
• Expectations must be well defined, and the employee must have sufficient time and bandwidth to meet
milestones.
• Goals must be reasonable. The challenge of a stretch goal can be invigorating; an impossible target will
certainly be frustrating and can be demoralizing.
• Managers must be prepared to offer guidance and coaching.

Goal Setting: A Fresh Perspective | 6

 section 2 Cascading and Aligning Goals

Taleo Perform™, part of Taleo Business Edition, helps managers and employees establish quantitative and qualitative employee goals, define expectations, and align
employee goals to broader company objectives, leading to improved productivity and a more engaged workforce. Its broad-scope interface provides an overview of
each individual’s goals and the business goal or strategy from which it cascades, along with an easy-to-scan graphic display of progress against goals.

Goal Setting: A Fresh Perspective | 7

 section 2 Cascading and Aligning Goals

How does this work: Cascading Goals Example

Goals address every aspect of organizational endeavor. Business units set goals related to increasing impact on the marketplace and becoming better at what they
do, whether that be through sales, impressions, clicks, cost control, productivity, or other measures. Functions also seek improvement through goals that may address
efficiency, expanding capability, higher service scores, and more. Team goals carve out each team’s expected contributions to the larger business unit and functional
goals, and individual goals further refine the work and make the all-important connection between the individual and the organization.

The goal cascade demonstrates to each individual employee what role he or she plays in achieving the company’s business goals. Study the example below.

Business level Cascaded goals How the cascade works

Business goal: Double revenues from $100M to $200M in the next five Senior executives are unsatisfied with the company’s slowing growth in
years. recent years. They want to make the company an attractive candidate
for acquisition or an IPO.

Division goal: Increase U.S. sales of HotProduct 1 by 20% in 2012. The HotProduct 1 U.S. division’s goal is to grow its business in line with
the company’s growth goal.

Department goal: Recommend three new U.S. markets for HotProduct 1 The market for HotProduct 1 sales in traditional markets has matured.
with $5M in potential by the end of Q1. The best potential for growth lies in identifying new markets. It’s market-
ing’s job to find them and determine how to appeal to them.

Team goal: Conduct comprehensive market research into potential The research team launches into high gear to develop the market data
new markets for HotProduct 1 in the U.S. by March 1. the marketing department needs to recommend new markets.

Individual goal: Complete thorough competitive intelligence studies of Competitive intelligence specialists must report on the competitive
suggested new HotProduct 1 markets in the U.S. by landscape in possible new markets by February 1.
February 1.

Goal Setting: A Fresh Perspective | 8

 P1 Practice: Cascading Goals

Now create a goal cascade that culminates in your contribution as an individual. Think about the goals of the team members around you and those to whom you
report. How does your work support that of others in the company? What information do you need to be effective in assuring your goals fit in to the company
cascade? How can you obtain that information most efficiently?

Business level Cascaded goals How the cascade works

Business goal:

Division goal:

Department goal:

Team goal:

Individual goal:

Goal Setting: A Fresh Perspective | 9

 section 2 Cascading and Aligning Goals

Aligning goals
The process of goal alignment provides a checkpoint to assure that all members of a team—at any level—are working in parallel toward the achievement of a goal.
Goal alignment guides goal setting in the same direction, so that every individual and team are working purposefully toward meaningful contribution as opposed to just
working. Alignment keeps everyone on the same road and discourages the divergence and distraction that can help derail progress toward planned business results.

Example of aligned goals

Team goal:
Individual goal: Complete competitive intelligence studies of potential new HotProduct 1 Team goal:
markets in the U.S. by February 1.

Individual goal: Complete thorough market sizing analyses for potential new HotProduct 1
markets in the U.S. by February 15.

Individual goal: Complete pricing analyses for potential new HotProduct 1 markets in the Conduct comprehensive market research
U.S. by February 1. into potential new markets for HotProduct 1
by March 1.

Individual goal: Conduct and report on focus group research for potential new
HotProduct 1 markets in the U.S. by January 21.

Individual goal: Develop HotProduct 1 product extensions or enhancements that might

increase its appeal to potential new HotProduct 1 markets in the U.S. by
February 21.

Goal Setting: A Fresh Perspective | 10

 P2 Practice: Aligning Goals

Practice aligning goals

Develop a set of aligned goals for another marketing department team in which your contribution parallels the work of other team members. Think about the goals of
the team members around you. Think about the goals of other marketing teams and how they might align with your team’s goal to contribute to achieving the goal of
identifying new HotProduct 1 markets with $5M potential. How does your work support that of others on your team? What information do you need to be effective in
assuring your goals align well with others’? How can you obtain that information most efficiently?

Individual goal: Team goal:

Individual goal:

Individual goal:

Individual goal:

Individual goal:

Goal Setting: A Fresh Perspective | 11

 section
3 Writing SMART Goals

On the journey toward achieving great business results, well-written goals are the fuel that drives performance.
It’s quite likely that you have heard of SMART goals and that you’ve traveled this way before. You may even
“It is not enough to be
be thinking, “Oh no! Not SMART goals again!” What else is there to know?
busy; so are the ants.
What are SMART goals? The question is: What are
we busy about?”
Most reviews of SMART goals explain the acronym this way: Specific, Measurable, Attainable, Relevant, Timely.
Andrew Carnegie
The goal clearly defines the outcomes to be delivered, with any
S Specific necessary interpretation agreed upon by the employee and manager
in advance.

The achievement of the goal can be objectively assessed according to

M Measurable
a pre-determined and applicable measurement.

The employee has the resources, time, and access to people, data,
A Attainable
etc., to allow him or her to achieve the goal.

The goal addresses work and results that clearly align with the goals of
R Relevant
the team, the department or division, and the organization as a whole.

T Timely The goal clearly specifies a delivery date or schedule.

Goal Setting: A Fresh Perspective | 12

 section 3 writing smart goals

But while there is generally conceptual agreement about what SMART stands for, there is room to make this
model one that reflects the practice, personality, and culture of your organization.

Think about the original acronym. Are there words that are more appropriate for your workforce?
• S can also refer to Stretch, Significant, or Synergistic. SMART
• M also might mean Meaningful or Motivating.
SMAART
• A can also represent Action-oriented, Agreed-upon, or Accountable. SMART-C
• R might mean Relevant, Rewarding, or Results-oriented.
SMARTER
• T can mean Tangible or Thoughtful.

SET SMART
SMART-S
Some organizations expand the acronym to include additional concepts:
• SMARTER, where the E means Engaging and the second R means Rewarding.
• SMART-C, where C means Challenging or Collaborative.
• SMART-S, where S means Stretch, Sustainable, or Significant.
• SMAART, where the second A stands for Actionable.

Glenn Hughes, Director of Global Learning for KLA-Tencor Corporation, introduced a SET SMART
methodology to broaden the scope of goal-setting to include the external as well as the internal. The
added acronym represents the following:
• S: Does it Scare the competition?
• E: Does it Engage the employee?
• T: Does it Thrill customers?

Is it time for your business to take a look at recasting SMART goals to be more compatible with your culture?
Wherever your company settles in this debate, make sure that you communicate throughout the organization
not only the what of your corporate SMART goal approach, but also the why.

Goal Setting: A Fresh Perspective | 13

 section 3 writing smart goals

Taleo Perform, part of Taleo Business Edition, allows for full customization in defining and/or expanding the SMART goal model to reflect the organization’s culture and
ensure consistent messaging across businesses/departments/teams.

Goal Setting: A Fresh Perspective | 14

 section 3 writing smart goals

A word about metrics

Make sure the measurement you apply to your goal is an appropriate one. There are two primary types of
metrics: variables and attributes. Use variable measures when your goal progress can be measured in
numbers or percentages. Use attributes when your outcome will be a qualitative or toggled result, such as
yes or no.

Variables Attributes
Number Yes/no
Percentage Complete/incomplete
Time Proceed/abort
Cost
Speed

Other elements of a good metric include:

The measurement data are easy to understand and compare

Easily understood
with other data.
The individual must be able to influence the variable or
Controllable
attribute being measured.
The measurement addresses all elements of the goal; it
Complete represents the numerical or qualitative portion of the
successful outcome.
The method of collecting measurement data should be
Cost manageable
affordable in terms of both time and financial resources.
Measurement data should be available within a time frame that
Responsive
allows for adjustment in the work plan if necessary.

Goal Setting: A Fresh Perspective | 15

 section 3 writing smart goals

Writing SMART goals

Let’s take a look at the individual goals of the market research team, analyzing the first pass at each goal and how the individual improved the goal to a final version.

First pass goal What’s missing? Final version

Find out about possible competitors in Specific? No. What form will your output take? When is your Complete competitive intelligence studies of
new markets for HotProduct 1. deliverable due? What geography will you cover? potential new HotProduct 1 markets in the
Measurable? No. Without specificity, it’s difficult to apply a U.S. by February 1.
metric to this goal.
Attainable? Yes
Relevant? Yes
Timely? No. When is your deliverable due?

Identify which potential new HotProduct Specific? No. What form will your output take? What Complete thorough market sizing analyses
markets might have potential for $5M in geography will you cover? for new HotProduct 1 markets in the U.S.
revenue. Measurable? Yes with potential for $5M in revenue by
Attainable? Yes February 15.

Relevant? Yes
Timely? No. When is your deliverable due?

Notes:

Goal Setting: A Fresh Perspective | 16

 P3 Practice: SMART Goals

Now you review the goals of the remaining members of the market research team. How would you rewrite them into SMART goals?

First pass goal What’s missing? Final version

Estimate the revenue that potential new †† Specific?

HotProduct 1 markets would generate. †† Measurable?
†† Attainable?
†† Relevant?
†† Timely?

Collect data on what prospective buyers might †† Specific?

like in a HotProduct 1. †† Measurable?
†† Attainable?
†† Relevant?
†† Timely?

Develop HotProduct 1 product extensions or †† Specific?

enhancements by February 21. †† Measurable?
†† Attainable?
†† Relevant?
†† Timely?

Goal Setting: A Fresh Perspective | 17

 S3 Solutions: SMART Goals
Below you’ll find one answer to the practice exercise. How do these final goals compare to the ones you have developed?

First pass goal What’s missing? Final version

Estimate the revenue that potential new 9†9 Specific?

† Complete pricing analyses for potential new
HotProduct 1 markets would generate. 9†9 Measurable?
† HotProduct 1 markets in the U.S. by February 1.

†† Attainable?
†† Relevant?
9†9 Timely?
†

Collect data on what prospective buyers might 9†9 Specific?

† Conduct and report on focus group research for
like in a HotProduct 1. 9†9 Measurable?
† potential new HotProduct 1 markets in the U.S. by
January 21.
†† Attainable?
†† Relevant?
9†9 Timely?
†

Develop HotProduct 1 product extensions or 9†9 Specific?

† Develop HotProduct 1 product extensions or
enhancements by February 21. †† Measurable? enhancements that might increase its appeal to
potential new HotProduct 1 markets in the U.S. by
†† Attainable?
February 21.
†† Relevant?
†† Timely?

Goal Setting: A Fresh Perspective | 18

 section
4 Goals For Business Results and Employee Development

When an individual—or for that matter, an organization—sets too many goals, the prospect of addressing
them all can become overwhelming. The employee may dip into and out of the work required for each goal,
making little progress toward any of them. Everything is a priority, so consequently, nothing is a priority.

Also, do not confuse job responsibilities with goals. Employees’ job responsibilities are laid out in job
descriptions; goals describe outcomes needed to move the business strategy forward.

Try to limit the number of goals toward which each employee is working to five or six, with one of those being
a development goal.

Working together on development goals

The development goal should address competencies and skills the employee needs to grow in his/her
current role. At the same time, consider the individual’s career aspirations and the organization’s future
needs. Is there a development goal that will enhance the employee’s role today and prepare him/her to
move ahead?

The manager and the employee should each answer the focusing questions below, then discuss their results
and agree upon the competencies and skills the employee should be working to develop, along with some
preliminary ideas about how he/she will develop them.

Goal Setting: A Fresh Perspective | 19

 section 4 Goals For Business Results And Employee Development

The What:
What competencies or skills do I need to master to:

• Improve my contribution or expand my scope in my current role?

• Progress toward my career aspirations?

The Why for today:

How will I use these competencies or skills in my current role? How will my growth contribute to better results
for my team?

Goal Setting: A Fresh Perspective | 20

 section 4 Goals For Business Results And Employee Development

The Why for tomorrow:

How will mastering these competencies or skills prepare me for expanded responsibilities or a broader
understanding and impact on the organization?

The How:
What steps will I take to get there? What is my preliminary action plan?

Goal Setting: A Fresh Perspective | 21

 section
5 How Goals Connect to Performance Management

Goals are a “contract” between employee and manager. They provide the framework for accountability and
promote conversations between the manager and employee to monitor progress throughout the year.
“Don’t say you don’t have
Goals are also a contract between the individual and the organization. They should be viewed as a route
enough time. You have exactly
toward a destination. Should the destination change with a change in business direction or requirements,
consider revising goals. However, set an organizational policy for a cutoff for goal revisions that falls no more
the same number of hours per
than midway through the year. Any revisions after that are, in reality, simply a recasting of goals to align with day that were given to Helen
what happened during the year. Keller, Pasteur, Michelangelo,
The goal framework is the basis for these performance management conversations:
Mother Teresa, Leonardo da
Vinci, Thomas Jefferson, and
What Why
Albert Einstein.”
Cascading organizational goals, aligning team member goals,
Life’s Little Instruction Book, compiled by
Goal setting managing priorities, addressing development needs, keeping
H. Jackson Brown, Jr.
employees engaged
Monitoring progress against plan, identifying challenges and derailers
Quarterly check-ins early, addressing changes, avoiding year-end surprises, keeping
employees engaged
Encouraging interaction between managers and employees,
Informal touch-bases and
recognizing positive performance and addressing negative performance
in-the-moment coaching
issues when they happen, keeping employees engaged
Assessing and rewarding performance, discussing readiness for coming
Annual performance review
year, keeping employees engaged
Building skill and capability in current role, preparing for career
Development planning
aspiration, keeping employees engaged

Goal Setting: A Fresh Perspective | 22

 section 5 How Goals Connect to Performance Management

Taleo Business Edition features a Microsoft Outlook plug-in that streamlines managers’ abilities to document performance conversations, both formal and in-the-moment.
This useful, practical tool supports proactivity, helping managers avoid the “uh-oh” of approaching the year end with little documented feedback for the employee. The
Outlook plug-in allows managers to build complete documentation over the course of the year, making the year-end performance appraisal easier to prepare and
more robust.

Goal Setting: A Fresh Perspective | 23

 section 5 How Goals Connect to Performance Management

Coaching for great goals and execution

The GROW model was developed and used extensively in the United Kingdom as well as in the United States
over the past 20 years. It has been promoted by such noted coaching practitioners as Graham Alexander,
Alex Fine, and Sir John Whitmore4, and offers a time-tested and effective model for coaching employees
about goal setting and performance. The model offers a highly useful set of probes that can help lead
employees to the answers they need to write and execute great goals.

• What is it you would like to focus on?

G
• What would you like to achieve?
• What would you like to happen that is not happening now?
• How would you know you were being successful if you achieved your goal?
Goals • How could you break this goal down into manageable chunks?
• What are all the things that would need to be done to achieve the goal?

• What is happening at the moment to derail your progress toward the goal?
• When and how often does this happen? Be precise if possible.

R
• What effect does this have?
• What other factors are relevant?
• Who else is relevant?
Realities • What is that person’s perception of the situation?
• What have you tried so far?
• What else is conflicting with achieving the goal?

• What possibilities for action do you see? Don’t worry about how realistic they are at this stage.
• Who might be able to help?

O • Which options do you like the most?

• What are the benefits and pitfalls of these options?
• Which options are of interest to you?
Options
• Rate from 1 to 10 your assessment of the practicality of each of these options.
• Would you like to choose an option to act on?

• What are your next steps?

W
• Precisely when will you take them?
• What might get in the way?
• What support do you need?
Will • Can you see some real benefit coming from this for yourself and others?
• Are you excited by the prospect?
4
Coaching for Performance: GROWing Human Potential and Purpose: The Principles and Practice of Coaching and Leadership (Third Edition). Whitmore, John,
London, England, U.K.: Nicholas Brealey Publishing (2002).

Goal Setting: A Fresh Perspective | 24

 section 5 How Goals Connect to Performance Management

Delivering performance feedback

Organizations use a variety of methods designed to collect data about employee performance and
to deliver that feedback to the individual: manager assessment of performance, 360-degree feedback,
coaching, development conversations, and more. In almost all organizations, these methods focus on
feedback, on a review of past events and “constructive criticism” on how the employee might have done
things better.

Feedback is important and works well in many of these contexts, but another method may be more effective
in day-to-day interactions and in-the-moment coaching. In these situations, Marshall Goldsmith
([Link]) promotes, instead of feedback, the use of feedforward.5
Feedforward focuses not on what went wrong in the past, but on what can go right in the future. It
emphasizes solutions rather than problems. And because it focuses on future solutions, the person delivering
the feedforward need not have any experience with the individual—just good ideas for completing the task,
making the change, delivering the result, etc.

Feedback, despite managers’ best intentions, often feels like judgment and criticism. Feedforward, on the other
hand, is typically interpreted as encouragement and a boost forward. Try feedforward. When an employee
encounters a challenge, suggest ideas that might work in the future. This method not only focuses on the
solution, rather than the problem, but also urges employees to think creatively and build on the ideas of others.

Why try feedforward? Here are 11 reasons:

1. We can change the future. We can’t change the past. Feedforward helps people envision and focus
on a positive future, not a failed past. Athletes are often trained using feedforward. Racecar drivers are
taught to, “Look at the road ahead, not at the wall.” Basketball players are taught to envision the ball
going in the hoop and to imagine the perfect shot. By giving people ideas on how they can be even more
successful, we can increase their chances of achieving this success in the future.
2. It can be more productive to help people be “right,” than prove they were “wrong.” Negative
feedback often becomes an exercise in “let me prove you were wrong.” This tends to produce defensiveness
on the part of the receiver and discomfort on the part of the sender. Even constructively delivered
feedback is often seen as negative as it necessarily involves a discussion of mistakes, shortfalls, and
problems. Feedforward, on the other hand, is almost always seen as positive because it focuses on

5
Feedforward is a tool offered by Marshall Goldsmith and is used with permission.

Goal Setting: A Fresh Perspective | 25

 section 5 How Goals Connect to Performance Management

solutions—not problems.
3. Feedforward is especially suited to successful people. Successful people like getting ideas that
are aimed at helping them achieve their goals. They tend to resist negative judgment. We all tend to
accept feedback that is consistent with the way we see ourselves. We also tend to reject or deny feed-
back that is inconsistent with the way we see ourselves. Successful people tend to have a very positive
self-image.
4. Feedforward can come from anyone who knows about the task. It does not require personal
experience with the individual. Feedback requires knowing about the person. Feedforward just requires
having good ideas for achieving the task.
5. People do not take feedforward as personally as feedback. In theory, constructive feedback is
supposed to “focus on the performance, not the person.” In practice, almost all feedback is taken
personally, no matter how it is delivered. Feedforward cannot involve a personal critique, since it is
discussing something that has not yet happened. Positive suggestions tend to be seen as objective
advice; critiques are often viewed as personal attacks.
6. Feedback can reinforce personal stereotyping and negative self-fulfilling prophecies.
Feedforward can reinforce the possibility of change. Feedback can reinforce the feeling of failure and can
be perceived to reinforce the message, “This is just the way you are.” Feedforward is based on the
assumption that the receiver of suggestions can make positive changes in the future.
7. Most of us hate getting negative feedback, and we don’t like to give it. In a review of summaries
of 360 degree feedback reports for more 50 companies, the items, “provides developmental feedback in
a timely manner” and “encourages and accepts constructive criticism” almost always scored near the
bottom on co-worker satisfaction with leaders. Traditional training does not seem to make a great deal of
difference. Leaders are not very good at giving or receiving negative feedback, and it is unlikely that this
will change in the near future.
8. Feedforward can cover almost all of the same “material” as feedback. Imagine that you have just
made a terrible presentation in front of the executive committee. Your manager is in the room. Rather than
make you relive this humiliating experience, your manager might help you prepare for future presentations
by giving you suggestions for the future. These suggestions can be very specific and still delivered in a

Goal Setting: A Fresh Perspective | 26

 section 5 How Goals Connect to Performance Management

positive way. In this way your manager can “cover the same points” without feeling embarrassed and
without making you feel even more humiliated.
9. Feedforward tends to be much faster and more efficient than feedback. An excellent technique
for giving ideas to successful people is to say, “Here are four ideas for the future. Please accept these in
the positive spirit that they are given. If you can only use two of the ideas, you are still two ahead. Just
ignore what doesn’t make sense for you.” With this approach almost no time gets wasted on judging the
quality of the ideas or proving that the ideas are “wrong.” By eliminating judgment of the ideas, the
process becomes much more positive for the sender, as well as the receiver. Successful people tend to
have a high need for self-determination and will tend to accept ideas that they “buy” while rejecting ideas
that feel “forced” upon them.
10. Feedforward can be a useful tool to apply with managers, peers, and team members. Rightly
or wrongly, feedback is associated with judgment. This can lead to very negative—even career-limiting—
unintended consequences when applied to managers or peers. Feedforward does not imply superiority
of judgment. It is more focused on being a helpful “fellow traveler”. As such it can be easier to hear from
a person who is not in a position of power or authority.
11. People tend to listen more attentively to feedforward than feedback. Normally, when others are
speaking, we are busy composing a reply. This is particularly true when receiving negative feedback. In
feedforward, people are free to listen to what is being suggested because they feel less defensive. Most
often when using feedforward, the response is “thank you.”

Goal Setting: A Fresh Perspective | 27

 section
6 Goal-Setting Worksheet

Use this worksheet as a guide to make sure your goals are properly aligned and that they follow your
organization’s SMART goal model. Review the following examples before you start.

Example: Roger Malek, human resources administrator

Goal 1

Aligning with business goal: Maintain our position as the employer of choice in our industry by retaining status as a Fortune top 100
employer in our size and industry category in 2012.

Aligning with HR division goal: Review and improve as necessary our talent management policy and process to improve retention by 2%,
achieve top employee ratings for on-boarding for 98% of new hires, improve employee engagement scores by
3%, and exceed competing employers’ benefits packages.

Aligning with department/team goal: Research, develop, recommend, refine, and prepare for implementation of a new 2012 performance
assessment approach by 4Q11.

Individual goal: SMART check

Roger will participate as a member of the team evaluating and recommending a new performance †† Specific?
assessment approach for 2012. He will have direct responsibility for researching successful approaches †† Measurable?
and reporting on them to the team by 1Q11. He will adapt the selected approach to our culture, writing †† Attainable?
the framework and obtaining team feedback by 2Q11. He will obtain legal sign-off and present the final †† Relevant?
team recommendation to senior HR leadership by July 2011. He will develop and obtain team approval of †† Timely?
an implementation plan by 3Q11.

Goal Setting: A Fresh Perspective | 28

 section 6 Goal-setting worksheet

Example: Lisa Count, plant A manager

Goal 1

Aligning with business goal: Increase U.S. market share for intermediate product line by 8% with neutral profitability impact by 4Q12.

Aligning with manufacturing division goal: Re-examine manufacturing elements to drive 6% of cost out and prepare for 8% production increase by 4Q11.

Aligning with department/team goal: Analyze all processes from LEAN perspective to drive out at least 6% of cost and assess needs for 8%
production increase by 3Q11.

Individual goal: SMART check

Lisa will lead the LEAN reassessment team for Plant A. She will chart the reassessment process by †† Specific?
February 15, 2011, and assemble and assign project teams by March 1, 2011. She will monitor process †† Measurable?
activity and sign off on milestone achievements. She will prepare and deliver a report of findings and an †† Attainable?
execution plan for achieving the team outcomes by July 15, 2011. †† Relevant?
†† Timely?

Goal Setting: A Fresh Perspective | 29

 P4 Practice: Goal Setting

Goal 1

Aligning with business goal:

Aligning with division goal:

Aligning with department/team goal:

Individual goal: SMART check

†† Specific?
†† Measurable?
†† Attainable?
†† Relevant?
†† Timely?

Goal 2

Aligning with business goal:

Aligning with division goal:

Aligning with department/team goal:

Individual goal: SMART check

†† Specific?
†† Measurable?
†† Attainable?
†† Relevant?
†† Timely?

Goal Setting: A Fresh Perspective | 30

 P4 Practice: Goal Setting

Goal 3

Aligning with business goal:

Aligning with division goal:

Aligning with department/team goal:

Individual goal: SMART check

†† Specific?
†† Measurable?
†† Attainable?
†† Relevant?
†† Timely?

Goal 4

Aligning with business goal:

Aligning with division goal:

Aligning with department/team goal:

Individual goal: SMART check

†† Specific?
†† Measurable?
†† Attainable?
†† Relevant?
†† Timely?

Goal Setting: A Fresh Perspective | 31

 P4 Practice: Goal Setting

Goal 5

Aligning with business goal:

Aligning with division goal:

Aligning with department/team goal:

Individual goal: SMART check

†† Specific?
†† Measurable?
†† Attainable?
†† Relevant?
†† Timely?

Goal 6

Aligning with business goal:

Aligning with division goal:

Aligning with department/team goal:

Individual goal: SMART check

†† Specific?
†† Measurable?
†† Attainable?
†† Relevant?
†† Timely?

Goal Setting: A Fresh Perspective | 32

 P4 Practice: Goal Setting

Developmental Goal

Aligning with business goal:

Aligning with division goal:

Aligning with department/team goal:

Individual goal: SMART check

†† Specific?
†† Measurable?
†† Attainable?
†† Relevant?
†† Timely?

Goal Setting: A Fresh Perspective | 33

 section
7 Ideas & Resources

Best Practices for Driving Employee Research Survey Says: Revisit Your Perfor- High Performance Organizations: Integrating
Performance mance Management Practices Talent Management & Finance
Taleo Whitepaper Taleo Whitepaper Industry Article
January 2011 February 2010 February 2010
27 pages 7 pages Human Capital Institute
Technology can help you establish consistent Talent management is widely acknowledged as a The conventional way of approaching organizational
performance management processes based on key to business performance. In fact, talent is performance is to separate finance and talent
company goals, competencies, and skills that increasingly being viewed as the master key. management and put them into separate boxes. Dr.
your organization defines. Using those as the Ted Prince of the Perth Leadership organization
Align Goals for Higher Engagement and
foundation, you can then align these with individual shows that this approach has pernicious impacts.
Productivity
employee goals.
Taleo Whitepaper Beyond the Buzz: 10 Things You Can Do To
Employee Performance Management: The January 2010 Become a High Performance Organization
Alpha and the Omega of Business Strategy A number of studies have quantified the direct Industry Article
Execution correlations between engagement and productivity August 2009
Taleo Analyst Report by measuring the interrelated factors. We know that Human Capital Institute
May 2010 talent management generally delivers higher What separates high performance organizations
1 page earnings for companies that practice and execute it. from their lower performing counterparts? Is there
Source: Aberdeen secret recipe that blends technology, leadership
Getting the Performance Edge: A Guide to
Author: Jayson Saba and employee engagement? Does the answer lie in
Evaluating Performance Management Systems
Author: Justin Bourke hiring, motivation or financial factors?
Taleo Whitepaper
In this study, Aberdeen found how best-in-class
September 2010 Redefining Success in Hi-Performance
companies are using performance management to
Learn how integrated performance management Organizations
stimulate employee engagement, boost employee
systems drive effective talent strategies. Align Industry Article
performance, and improve customer satisfaction.
employee goals with corporate objectives, engage November 2009
This report outlines how performance management
employees with competency based development Human Capital Institute
processes.
plans to increase productivity, help employees According to a 2009 PricewaterhouseCoopers
make progress. survey, many CEOs were quoted as being concerned
with how their respective companies engage, retain,
and manage talent. As the economy begins to
expand, our concern in this arena deepens.

Goal Setting: A Fresh Perspective | 34

 section 7 IDEAS & Resources

CONTACT
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ABOUT TALEO

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Goal Setting: A Fresh Perspective | 35