Target agreement for employee motivation: 2 steps for priorities & clear communication!

How do you motivate employees? By setting clear goals - actually quite simple. Why is it often wrong? And what can you do about it?

Employee motivation - what is important?

For the Motivation of employees has that Behavior their manager decides Significance.

• How are they treated by their manager?
• What is the power of leadership?
• Are the employees not only challenged but also encouraged? Does the manager give instructions or set goals?

Guide by target agreement or Management by Objectives (MbO) was developed in 1954 by Peter F. Drucker and made known in 1965 by George S. Odiorne. The Method has proven itself over many decades and is used in countless companies. This e-book aims to show you how, as a leader, you can Employees by agreeing on goals successfully being able to lead.

How does goal agreement work?

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In practice, however, employee motivation through clear goals often fails because of the Communication. In doing so, company successes can be achieved through target agreements clear increase. But how do target definition, target agreement and target achievement talks work?

The management by target agreement is a dynamic model - a cycle scheme that is run through cyclically. It consists of three steps:

1. Define goals,
2. Objectives meeting
3. Achievement conversation

The next sections will show you how to do this steps use it as a management tool and thus increase the motivation of your employees and, in connection with this, the success of your Company. You will then find out where at the Implementation Difficulties can arise and what possible solutions are there. The method is based on a participatory management style and fair dealings between managers and employees. No previous knowledge is required for its implementation
are required for operation.

Clearly Communicate: 2 Steps to the optimal goal agreement

Management by target agreement runs cyclically across the stations Objective, target agreement and target achievement. A target period usually extends over a year.

1. Define goals

Before agreeing on goals, you need at least a rough idea of ​​what they might look like. Usually you have to sign up at the selection from goals to specifications: first and foremost the overarching goals of your company. These set the framework. Departmental goals are derived from them. In turn, the individual goals of the employees are derived from the departmental goals.

Of course, companies, departments and groups are not acting individuals, but only organizational units. And their goals are merely theoretical constructs. Making decisions, taking action, pursuing goals, creating values ​​– only people can do that People like your employees and yourself. Their interaction determines the success or failure of a company.

But a year - the usual cycle time - is long, especially in a dynamic environment. In order to be able to recognize during this time whether you are on the right track, define interim goals (such as monthly or quarterly figures) and milestones (results at the end of certain project phases). Missing the intermediate goals and milestones serves as an early indicator for Problems – as a signal, correcting at an early stage
einzuschreit that.

If you have goals forms, note that these should consist of two elements viz

1. the goal: - “What do I want to achieve?” - determined in measurable numbers (quantitative, e.g. number of items produced, sales, market share) or according to other quality criteria (qualitative, e.g. customer satisfaction, adherence to deadlines), and
2. the measures: - “How do I want to proceed?” - defined in action plans.

Targets pre-formulated in this way are, however, still relatively imprecise. Therefore, specify your goals based on the following four dimensions:

• Target direction: The target direction must be consistent with the corporate goals. It consists of the respective parameter (e.g. operating result, customer satisfaction) and its intended direction (e.g. improvement, reduction), so it could be an “improvement in results” or a “reduction in complaints”.
• Measured variable: The measured variable must match the target direction and reflect this objectively in a suitable manner. For example, revenue is a suitable measure for improving results. So this would probably have to be increased.
• Target amount: You can set the target amount in absolute figures (e.g. “Sales: 280.000 euros in the next calendar year”) or in relative figures (e.g. “plus four percent”).
• Reference value: In the case of relative figures, you have to determine a reference value, ie around four percent increase in sales “compared to the previous year”.

So one could Objective ring:

"We want to achieve an increase in sales of four percent compared to the previous year."

now have to Measures derived in order to achieve these specific goals. Formulate clearly and precisely here as well. Specify exactly...

• who (department, person ...)
• what (project, task, measure ...),
• when or when (dates or periods for interim, milestones, result),
• (resources such as capital, materials, employees),
• how (procedure) and
• with which result (fixed target, see above)

... has to do.

After you have defined specific goals and precise measures to achieve them, you now need to communicate them. This brings you to the second step, the target agreement discussion.

2. Objectives meeting

The core of a target agreement is not the target - this could also simply be specified - but the agreement. What matters is that your employees Tasks takes over and feels responsible for it - that he sees the tasks as challenges and tries to achieve them independently. Ideally, he identifies with the goals because he was involved in formulating them, so they bear his “signature”, so to speak.

1. Before a new period, both you as a manager and your employee consider for yourself which goals the employee can realistically achieve by the end of the upcoming period.
2. For the actual target agreement, sit down with your employee and bring your and his ideas into line with one another. In particular, make sure that the agreed goals are in line with the general corporate goals. If you do not already know this, you must first explain this to your employee.
3. Make yourself aware that the conversation should lead to a win-win situation. Make an effort together to achieve the most accurate, realistic assessment of the employee and his potential as well as the goals that he can achieve in his position in the company. No one is served by over- or under-demanding your employee. It is up to him to aim for realistic goals. And it is your job to help him do that.

As the manager, you are responsible for conducting the appraisal interview, and both parties are responsible for the outcome. Run that Conversation in an open and honest dialogue. The conversation thrives on reciprocity and the willingness to engage with the perspective of the other.

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