Economics/Business

Goal management definition/3 steps to manage/OKR methodology

Goal management is a mindset that directs all employees to focus their efforts on achieving strategic results for the company, engaging them and increasing overall productivity. Goal management definition

Is your company stagnant and looking for a methodology to grow? The answer to your problems may lie in managing goals !

Even if the organization is not facing this problem, managing goals is paramount for any modern business that wants to grow consistently.

Determining the goals of a company is not an easy task, but it is extremely necessary so that the results can be correctly evaluated.

And it is precisely to help you create clear and relevant goals for your company that we created this article.

What is goal management

Goal management is the action of controlling the company’s strategic resources in order to achieve predetermined goals that are relevant to the company’s future. Goal management definition

One of the most relevant questions on this subject is: what are the resources needed to effectively execute a goal plan ?

The role of HR in this scenario is starting to become clearer, isn’t it? Later on, we’ll talk a little more about how organizational culture is important at this point in the process.

The main focus here is to direct all the resources we talk about in order to achieve excellence in operations. 

The use of these resources is guided according to the evaluation of the results obtained, optimizing them and increasing the chances that these goals will be met and the objectives completed.

Following this flow of thought, in the next topics of this text we will show how to implement an effective methodology and the importance of analyzing the results.

How to manage goals in 3 steps

Establishing a plan of goals is not something simple, after all they need to be smart and relevant to the company’s vision in a way that challenges teams without being unrealistic. Goal management definition

Not only that, both planning and execution must be done in a way that encourages and engages all employees, demonstrating that everyone has a common goal.

See below how the 3 steps work to manage goals in your company.

1. Goal planning

Planning is an important part of any action within the company.

Without this step, all the work employed does not have a clear objective and analyzing the results becomes a nebulous task.

After all: how to analyze the performance of employees if there is no guide to base it on?

After all, how to set goals?

Here it is important to always have your feet on the ground. Many entrepreneurs have an optimistic vision for their business, but what really needs to be taken into account is reality . Goal management definition

Thus, it is very important to evaluate the current performance indicators , thus raising the result obtained at the moment and aiming at the best known result.

This northern value, which we call the best result obtained , can be identified both internally and through benchmarking with other companies in the niche or with a similar department.

Thus, once the indicators have been raised, it is time to determine the results to be achieved with each of them. 

For this, there is a methodology already widely used in the business world, SMART. In short, it means:

  • specific (specific);
  • measurable;
  • attainable;
  • relevant (relevant);
  • time based.

Another issue that must be taken into account is the appropriate target for each hierarchical level . 

This is important, as it translates the strategy into tangible objectives from the president to the managerial and operational levels of the company . Goal management definition

It is also worth making clear that when all goals are a priority, execution and resource allocation is confusing and inefficient.

Thus, determining what the priorities are for each sector is extremely important. 

Also keep in mind that there is no point in generating an infinity of goals for each sector, they should, yes, be challenging, but rational and measured so as not to be a factor of discouragement.

2. Implementation of goals

It all starts with the dissemination of the strategy defined in the goals plan to the entire company. 

After all, it is essential that employees at all levels are fully aware of the direction the company intends to follow.

All employees must have at the tip of their tongue what their individual goals are, in their sector and how this affects the company’s results.

An excellent way to do this is through meetings with teams in which goals can be presented in detail.

The importance of the goal for the company and its reason for existing are two points that cannot be left out of this briefing .

Here is a great opportunity to collect feedback from employees on what was presented, including them in the logistics to achieve the sector’s goals.

3. Monitor and control goals

After putting the logistics into practice to achieve the goals determined in the logistics phase, it’s time to assess how employees are performing in this mission.

After implementation, it is important to track the progress of the chosen indicator. 

Not only that, it is essential to closely monitor employees in order to understand the challenges that arise in the execution of their tasks. Goal management definition

For this, constant feedback sessions are necessary, after all, following the path to the objective is a task that requires collaboration between management and operation. 

Feedback is also a way to keep employees stimulated and motivated to achieve the goal within the given time.

Keep in mind that it is necessary to have a kind of dashboard in which it is possible to follow the progress of the goal . 

Without this follow-up, it is not possible to take action in time if employees are deviating from the path.

Peter Drucker, the father of management, once said: “what you can’t measure, you can’t manage”.

Later on, we will give you some tips on how to follow the goals closely.

How the OKR methodology can help in managing goals

The OKR method gained fame for being used by Google, being one of those responsible for leveraging a company that went from 40 people to more than 85 thousand. Goal management definition

If you are not yet familiar with this concept, get to know the objectives and key results or objectives and key results, in Portuguese.

Understand what OKR is

The OKR methodology is based on two components:

  • objectives (O): here the direction that the company wants to follow is described, having a qualitative content;
  • key results (KR): goals that impact the objective to be achieved, normally there are between two and five results per objective, and their character is quantitative.

That way, it’s more practical to make the whole team walk in the same direction. Being an excellent tool for goal management.

Good practices associated with managing goals

It all starts in the organizational culture and takes time. There’s nowhere to run, changing the mindset of an entire company, no matter the size, is an arduous task. Goal management definition

So, HR team, get ready for several onboardings in order to align the new reality with all employees.

But to make your life easier on this mission, here are some good practices when managing goals!

1. Invest in the relationship with the employee

To manage a team effectively, it is necessary to encourage it, something that goes beyond salary and gifts.

For this, it is essential to offer a purpose to the professionals within the company, a place that will not only serve to put food on the table, but also motivate them to leave the house. 

Of course, all this is very playful and impractical, but it is possible to start with simple actions to value the employee and also have a mindset derived from a management that puts people first .

Appreciation has as a direct consequence motivated and productive employees.

2. Involve the team in planning goals

Who better than those who will perform daily tasks to help set goals? Goal management definition

The integration of the team in management decisions can not only bring valuable insights from day to day, but also makes them feel important to the company.

Employees, better than anyone, understand the reality of the organization, after all, they are the ones who deal daily with customers, suppliers, partners, etc.

Not only, it is an opportunity to engage with the company that values ​​the participation of its employees, strengthening the bond and creating a relationship .

In other words, this is an excellent strategy to create a relationship between professionals and the company they work for.

3. Well-defined and objective goals

Goals must be written objectively. No “improvement performance”; here it is necessary to write something like:

  • optimize industry performance by 20%;
  • increase profitability by 30%;
  • increase the number of qualified leads by 70%;
  • decrease turnover by 30%.

It is also necessary to create detailed plans to achieve the goal and also determine specific responsibilities for each task. Goal management definition

Not only that, it is very valid to reinforce that the goals must be feasible without ceasing to be challenging. 

This is yet another reason to integrate employees in the process of defining the company’s strategic objectives.

Unattainable goals are reasons for demotivation for the team.

4. Constant feedback

Feedback is the foundation of a functional and aligned team.

Feedback is not only a way of aligning production, it also serves as a time for learning and reorientation of goals, in case they have been overly optimistic.

5. Identify risks in advance

Each and every intervention has associated risks, so identifying them in advance is an efficient way to create contingency plans . Goal management definition

Be thrifty when using plan B, as it can easily be an escape from a bigger challenge.

The benefits of goal management

The management of objectives goes far beyond a methodology to increase productivity, it is a mindset that permeates the entire company.

Employees who are well informed about the strategic objectives adopted and aware of their role in achieving them bring with them a series of benefits. We discuss them below.

profit increase

When employees clearly understand what is to be achieved, problem-solving creativity comes into play.

Clear goals result in inventiveness in the execution of tasks: new and more efficient systems and workflows are implemented, which essentially increases individual and sector productivity.

A more productive company results in a higher profit margin!

Encourage teamwork and keep employees engaged through constant feedback and even incentives like gamification . Goal management definition

In addition, greater profitability can make it possible to hire new tools and professionals, further optimizing the company’s operational routine and, consequently, increasing profits.

Greater capacity for process execution

When goal management is strong within the company, internal processes tend to be very clear and constantly optimized.

In this way, this culture of productivity is deeply rooted in all employees, allowing more projects to be tackled at once.

Not only that, this clear view of work routines allows managers to allocate resources more strategically, optimizing project execution and bringing the company closer to achieving its goals.

Reduction in turnover

This benefit is especially targeted at HR KPIs . 

More engaged and motivated employees think twice before leaving the company . 

Salary is no longer the only factor in this matter and the purpose offered by the company along with the organizational culture are also weighted.

The management of goals makes clear the role of the employee in the overall result of the company. 

Not only that, they can serve as a framework for creating an incentive program, motivating employees even more. Goal management definition

It is worth mentioning that small and medium-sized companies can benefit even more from this type of action, since their employees do not have their greatest asset.

How goal management software makes the process easier

Automation is a great way to facilitate the management of goals, after all, keeping up with everything that happens in the team is a real challenge.

As you can see, implementing a result-focused mindset is not a simple task, so any help is welcome.

Therefore, goal management software is important allies in this endeavor . 

The search for the best management tool can be done during planning, when follow-up methodologies are being designed.

In this way, it is possible to compare the programs objectively and identify the one that makes the most sense for the management of your company’s goals. Goal management definition

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