You may find this rather unbelievable, but many activities, especially marketing programs, lack performance targets. How can you declare success if you don’t have a target? Every function within an organization is asked to be accountable. Because Marketing often reflects a significant part of the organization’s budget, it is frequently scrutinized for proving its value. Performance target setting is a distinguishing capability between best-in-class marketers and their colleagues. Every function, and Marketing in particular, that utilizes performance management best practices intelligently sets performance targets that are relevant to the organization’s objectives and outcomes.

We realize that setting targets is one of the most common problems encountered on the performance management journey. However, without a stake in the ground, any results reported, while useful, do not necessarily demonstrate that your function met its performance commitment. Without targets, it is just as easy for leadership to arbitrarily declare failure as it is for you and your team to declare success.

Being able to set a performance target for your work, initiative and/or objective is a critical component in developing your performance framework and system. The target you choose represents a commitment to achieve a specific and better quality or level of performance over a specified time frame. It is used to evaluate performance achieved compared to performance expected. For example, a performance target for a tactical activity may generate a specific number of conversations with qualified customer targets at an upcoming event.  Setting a product adoption rate for a new product within a specific period of time after launch serves as another example. 

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How to Set Targets You Can Meet

Make setting performance targets a standard of excellence for you and your team. Secure agreement for these so everyone knows when to declare success.  The key is to set realistic targets.  It helps to know two things to set acheivable targets: your current state of performance (your baseline) and what is considered best-in-class (the benchmark). 

Follow these 10 steps to set targets you can meet.

1. Have clear measurable outcomes and objectives. You need to know where you’re headed and what you’re aiming for.
2. Define the time period for achieving these outcomes/objectives.
3. Document your current performance for affecting this type of outcome and objective and assess whether it directly related to what you need to accomplish. Historically, what have your programs produced? If you can’t use your own data to establish a baseline, consider using a benchmark from your industry.
4. Identify the performance measures you need to improve. Remember, a target is about taking your performance to the next level. You want to be one that demonstrates improvement but not one that sets you up to fail.
5. Establish the purpose of the performance target. Be clear about what you are trying to improve.
6. Assess whether you need intermediary or milestone targets. You may find out that there are some interim performance targets you need to achieve before you can reach your ultimate target.
7. Choose the target value. For example, some improvement in the number of qualified opportunities, or some improvement in the average order value, or some improvement in the number of referrals that will convert to qualified conversations, and so on. It’s often a good idea to use a range for your target value.
8. Develop an action plan to achieve the target.
9. Implement your plan of action.
10. Monitor, Report, and Evaluate.

Smart leaders understand the inherent value of setting targets.  Targets provide focus and direction.  Collaborate with your team to establish achievable targets. Secure support from the C-Suite for the process.  Ensure everyone agrees that achieving the target demonstrates your function’s contribution, impact, and value.

This approach will ensure that the performance targets reflect how success will be measured. Take your Performance Journey to new heights with Accelance®

FAQ:

• Start with clear, measurable outcomes and objectives.
• Define the time frame for achievement.
• Establish your current performance baseline (use internal or industry benchmarks if needed).
• Identify which measures need improvement and set targets that are ambitious yet attainable.
• Clarify the purpose of each target and whether interim milestones are needed.
• Select target values (ranges are often useful).
• Develop and implement a supporting action plan.
• Monitor, report, and evaluate progress.

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