goal setting training

8/6/2019 Goal Setting Training

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Performance Management ProgramPerformance Planning/Goal Setting

July 2010


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Objectives

This key objectives of this session are to: Understand the Performance Management process at Houghton

Understand the role of managers and employees in the process

Develop effective goal setting skills


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Performance Management Overview


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Why Performance Management?

The performance management system is designed to assist in

building a performance culture at Houghton that supports:

Consistency in the management and development of employees

Employee understanding of their contribution to key Houghton

business objectives

Measuring and assessing performance

Planning, measuring and providing feedback against realistic

and agreed objectives


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Performance Management Objectives

The Houghton performance management system isbased on

global best practices and has the following objectives:

Translate Company business objectives into individual goals for

employees

Help managers and employees agree on goals

Encourage individuals to take accountability for the achievementof realistic, but challenging performance outcomes

Focus on clarity and ensure employees are clear on what is

expected and how it will be measured

Provide continual communication and feedback on goals inrelation to attained performance levels; and

Foster sincere discussions of opportunities for employee

development


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Performance Management Process

Our new process includes 3 key drivers of performance

improvement

Planning and

Goal Setting

Planning and

Goal Setting

Feedback and

Coaching

Feedback and

Coaching

Performance

Review

Performance

Review


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Performance Management Process

Planning & Goal Setting

Identify individual performance expectations and gain employee

commitment to achieving those expectations

Typically occurs prior to start of financial year

Feedback & Coaching

Continual tracking and improvement of performance throughconstructive feedback and reinforcement of key results

Is ongoing throughout the year

Performance Review

Quarterly performance discussions regarding progress against

performance objectives

A formal documented performance review after year-end to assess

actual results/accomplishments against stated performance objectives


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Employees Role in Performance Management

Active participation, including honest self-assessments during

performance discussions

Initiate conversations to discuss progress and raise awareness

of performance blocks

Solicit, listen to and act on feedback

Identify own strengths and development needs and suggest

appropriate action plans

Prepare performance review self-assessment


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Managers Role in Performance Management

Set objectives for employees that support Company objectives

Communicate objectives clearly

Encourage employees to participate in their performance

management

Provide informal, frequent and candid feedback on how

employees are progressing and how they can improve

Provide solutions and tools to assist inbreaking performance

barriers

Confront poor performance and reinforce good performance

Support employee development and possible career progression


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Goal Setting


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Todays Main Messages

Goals should be aligned from the top of the organization down

through the businesses to the individual Houghtons approach to alignment one conversation at a time

Therefore, setting goals begins with a conversation

Manager meets with the employee one-on-one or with the team

Manager reviews company, BU and Departmental goals

Goals set direction for each of us

Goals should furtherbe defined by employees job level and function

You are responsible for your own success

Coaching and Feedback is everyones job

Goal setting begins with a conversation

between a manager and his/her employees

Goal setting begins with a conversation

between a manager and his/her employees


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Goal Setting - Performance Goals

Goals cascaded from Houghtons strategic business objectives and/or

Key Performance Indicators (KPIs) through the business unit anddepartment to the individual level

Key Performance Indicators (KPIs) are quantifiable measurements thatdefine and measure progress toward the Companys strategic businessobjectives

Some examples for Houghton include profitable growth, working capital,supply chain effectiveness, innovation & continuous improvement, totalexpense efficiency, etc.

Performance goals typically focus on financials, productivity, safety,process improvement, project management, etc.

Some goals can change during the cycle as warranted by businesspriorities and new opportunities

As a guideline, employees should set 3-5 performance goals


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Goal Setting - Development Goals

Focus on the knowledge, skills and behaviors needed to accomplish

the performance goals

May prepare you for another role at a higher level or a different area

of expertise

Can be technical/job specific skills or interpersonal skills such as

team building, peer relations, communications, developing others,etc.

As a guideline, employees should set 1-2 development goals


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Goal Setting SMART Goals

The key to writing effective goals is to ensure that theyare SMART:

Specific Clearly define what you are going to do.

Measurable State how you are going to know youve achieved your goal.

Attainable Goals should be challenging and require effort to achieve, butyou must have the resources, will and control to achieve

them.

Relevant Why is the goal important? Goals should focus strictly on the

important aspects of your job that support strategic businessneeds.

Time Bound When will your goal be completed? Including an end point onyour goal focuses your time and attention and provides a

clear target to work towards.


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Writing Goals - Example

Goal 1

Reduce cost of goods sold


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Goal 1


Better Goal 1

Reduce the cost of goods sold by 20% in the D&S segment by end

of the fiscal year


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Goal 1


Better Goal 1


of the fiscal year

Goal 2

Develop direct reports


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Goal 1


Better Goal 1


of the fiscal year

Goal 2

Develop direct reports

Better Goal 2

Develop direct reports by establishing SMART performance and

development goals for each direct reports within 30 days of the

start of the FY2009


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Performance Goals - Examples

Specify Business Objective

or Key Performance

Indicator (KPI)

Expected Results - Metrics,Targets, Timelines

Results &

Accomplishments - Actualresults or status of

progress

Increase overall monthly

sales by introducing

connector products into new

markets.

Increase monthly sales by

15% in Mexico, Poland and

Japan by the end of the 3rd

quarter.

Manage the relocation of a

local office in accordance with

agreed upon standards and

action plans.

Relocation must be complete

and office fully operational by

7/1.

Develop, implement and

communicate Companycompensation structure.

Have structure fully

implemented in US by 8/31.

Develop an online system to

track customer complaints.

Develop system and reduce

customer complaints by 50%

by the end of the fiscal year.


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Development Goals - Examples

Target Skills

Expected Results

Observable

behaviors/measures of

progress

Results &

Accomplishments - Actual

results or status of

progress

EarnC

ertified Associate in ProjectManagement through the Project

Management Institute.

Pass certification exam by 12/31.

Increase business acumen by

working one day per quarter with

regional sales manager, meeting a

wide range of customers and

prospects.

Successfully present analysis and

action plan to regional sales team by

end of 2nd quarter

Take advanced Excel class to

enable efficient data analysis

capabilities.

Attend class by 7/31 and

demonstrate increased technical

capability by completing more

advanced data analysis requests by

9/30.


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Goal Writing Exercise

Individually:

Draft a Performance goal using the Performance Management Form

Determine if the SMART goal criteria are present:

Specific

Measurable

Attainable

Relevant

Time Bound

In pairs share your results

Write a better goal

Prepare to discuss your options, challenges


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Performance Management Review


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Performance Management Form


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Performance Management Form contd.


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Performance Management Approvals

Goals set between managers and employees do not require

approval of second level managers

Managers must complete year-end performance reviews for their

employees and have these reviews approved by second level

managers

Once managers have held year-end performance discussions withtheir employees and the employee has signed their review, it must

be sent to HR for inclusion in the employees file

In order to be considered for a merit increase, managers must

complete year-end performance reviews with their employees

Likewise, employees must have had a performance reviewcompleted for them to be considered for a merit increase


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Next Steps

Work with each of your employees to develop goals as soon as

possible

Additional training will be scheduled towards the end of the year on

assessing employee performance, writing performance reviews and

delivering performance feedback to employees

goal setting training

Documents