Archive for the ‘Setting Performance Targets’ Category

Some people talk about stretch targets. Or BHAGs (Big Hairy Audacious Goals). They represent a very large and significant improvement in performance. Pretend, for example, you were measuring On Time Delivery, the percentage of times you delivered your product or service to your customers on or before the agreed time, each month. And let’s say that currently your On Time Delivery averaged around 45%. A stretch target would be to average around 95%.

Usually stretch targets scare the living daylights out of people. They have no idea how or if it can be achieved and they don’t want the pressure of failing to meet the stretch target. Occassionally stretch targets can be motivating and inspiring, but rarely without careful leadership, a strong improvement culture or a damn good reason!

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