This text is based on a blog post by Brian Tracy.
Define your goals in a very specific and concrete way
Goal sets should never be vague. For example, it is not enough to say an employee will be educated in a certain area. You need to be clear about what skills or certifications the worker must acquire by a certain point in time. If you do not define the goals precisely, you will never know if the employee has achieved them or not.
Set goals that are realistic
Perhaps the most important lesson is that the goals you set must be realistic. If your goals are too ambitious because you think this will motivate your subordinates to perform at their best, your team's results will turn out badly.
Achieving goals must be under the control of your subordinates
Many managers give subordinates targets relating to things or indicators the workers in question have no chance of influencing. The goals you set for subordinates should always be 100% within their control, regardless of whether or not they achieve them: their results should not be dependent on the work of people outside the team.
Define a clear timeframe
Every plan and every goal requires a clear time frame. Define by when the goals need to be achieved and set the goals in a fixed time frame.
Specify milestones: the path to the results
Last but not least, define how your team can achieve the goals. It is not enough just to state the target metric: you should also say how to get there. Therefore, also specify the sub-steps employees will take to get to the goal and help them structure a plan of action.
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