2. Defining goals, objectives and targets
What is target (noun)? target (noun) meaning, pronunciation and more by Not many states will meet their targets for energy conservation. Using KPIs ensures your targets will meet the first two criteria, as all KPIs should, by definition, be specific and measurable. For more information about KPIs, see. How to set performance targets to represent success at achieving your outcomes. Step 2: Define what you want to achieve and by when your direct reports have the skills, knowledge, and company resources required to meet the target.
Establishing a strong alignment between government goals and objectives and transport initiatives is critical. Without this, initiatives will not stand the test of time. They will also fail the strategic merit test see F3which requires transport initiatives to align with government goals and objectives.
Examples of economic goals include: A diverse and resilient economy Higher levels of productivity and economic efficiency Increased trade or exports More competitive industries.
Economic goals are likely to be found in policies and plans aimed at driving economic and jobs growth, economic prosperity and industry diversity and competitiveness. Social goals Social goals are also important to communities and governments. These goals include the prerequisites for a stable, safe and progressive society and may be very broad or more focused.
Fairer distribution of income Improved public safety in the city centre Social cohesion and inclusion Equity between geographic areas for example, in access to services and jobs.
Social goals can be found in strategies dealing with health and wellbeing, equity, social and economic inclusion, and community services. Environmental goals Environmental goals are becoming increasingly important to communities and governments.
These goals can cover a very wide range of issues: Examples of environmental goals are: Preserving healthy landscapes, such as clean air, land and waterways. Reducing the loss of habitat and biodiversity Increasing the efficient use of energy and water resources Protecting sites with heritage, indigenous and cultural values Enhancing the liveability and amenity of urban centres.
Environmental goals can also focus on intergenerational equity: High-level environmental goals may appear in policies and strategies covering areas such as climate change, energy and water, biodiversity and land use planning.
A TBL focus is used throughout all aspects of the Guidelines. It is used as more of a philosophy that influences the planning and assessment of the transport system, rather than a specific approach or methodology.
Adopting a triple bottom line approach gives transport planners an important tool for assessing the implications of proposed initiatives across the full range of government policy goals. Transport system objectives can be aligned directly with high-level TBL goals. Objectives such as improving business access to markets, reducing transport costs and supporting business clustering will contribute to the broader economic goals of lifting productivity levels or increasing the diversity of the economy.
Objectives such as improving transport affordability and making public transport more widely available will contribute to social goals such as reducing social and economic disadvantage, and improving equity between geographic areas.
For this reason, it is also known as the EBIT earnings before interest and taxes margin. Net profit margin - this is a much narrower measure of profits, as it takes all costs into account, not just direct ones.
Setting Performance Targets – Gallaudet University
So all overheads, as well as interest and tax payments, are included in the profit calculation. Return on capital employed ROCE - this calculates net profit as a percentage of the total capital employed in a business.
This allows you to see how well the money invested in your business is performing compared to other investments you could make with it, like putting it in the bank. Other key accounting ratios There are a number of other commonly used accounting ratios that provide useful measures of business performance.
Cash flow can be a particular concern for growing businesses, as the process of expansion can burn up financial resources more quickly than profits are able to replace them. Measurement and your customers Finding and retaining customers is a crucial task for every business. So when looking for areas of your business to start measuring and analysing, it's worth asking yourself if you know as much as possible about your clientele.
See your business through your customers' eyes Looking at things from your customers' perspective can help you avoid getting sidetracked as you consider your options for growth. Feedback is key - the more you know about what your customers think and want, the easier it will be to cater for growing numbers of them. Look for as many ways of capturing this information as possible, including: CRM also enables you to push up service levels by ensuring that all customer-facing staff have ready access to each customer's history.
Widen your focus beyond current customers Selling more to existing customers might be the easiest way of increasing sales, but most businesses aiming for significant growth will need to find ways of reaching new groups of customers. So knowing more about sections of the market you haven't yet tapped is crucial.
Measurement and your employees As your business grows the number of people you employ is likely to increase.SMART Goals - Quick Overview
To keep on top of how your staff are doing, you may need to find slightly more formal ways of measuring their performance. Measuring through meetings and appraisals Informal meetings and more formal appraisals provide a very practical and direct way of monitoring and encouraging the progress of individual employees. They allow frank exchanges of views by both sides and they can also be used to drive up productivity and performance through setting employee targets and measuring progress towards achieving them.
Regular staff meetings can also be a very useful way of keeping tabs on wider developments across your business. These meetings often give an early indicator of important concerns or developments that might otherwise take some time to come to the attention of your management team. Quantitative measurement of employee performance Looking at employee performance from a financial perspective can be a very valuable management tool.
At the level of reporting for the overall business, the most commonly-used measures are sales per employee, contribution per employee and profit per employee. These measures shouldn't be thought of as an alternative to the broader appraisals outlined above, but can flag up issues that might later be explored in more detail in those meetings.
2. Defining goals, objectives and targets
Expressing employee performance quantitatively is easier for some sectors and for some types of worker. For example, it should be quite easy to see what kind of sales an individual sales person has generated, or how many units manufacturing employees produce per hour at work. But with a bit more effort, these kinds of measures can be applied in almost any business or sector. For example, using timesheets to assess how many hours an employee devotes each month to different projects or customers under their responsibility gives you a way of assessing what the most profitable use of their time is.
Measurement against other businesses - benchmarking Benchmarking is a valuable way of improving your understanding of your business performance and potential by making comparisons with other businesses. Who to benchmark against It is usually helpful to compare yourself against businesses in the same sector. But your market position and your objectives, among other things, will affect the specific comparisons you want to make.
For example, a small business in a crowded sector may want to benchmark itself against average performance levels in the sector.
But a business targeting rapid and significant growth may choose comparisons with an established market leader. You can also benchmark internally within your business. For example, comparing absenteeism rates between departments may enable you to spread good working practices from the best-performing areas of your business.
What to benchmark In general, the same rule applies to benchmarking as to choosing which performance measures to use. You should focus on those areas that drive business success in your sector - your key drivers. How to benchmark You should have ready access to all the figures for your own business, so the main challenge with benchmarking is often the process of finding external data for your comparisons.
There are a number of sources for this kind of information: Your trade association is a useful starting point, as these organisations often collate sector-wide statistics. Commercial market reports may provide greater detail, although these can be costly. Using your benchmarking data Benchmarking data should be used in the same way as any other performance measurement data you generate - as a spur to improve the way your business operates.
Typically this will involve setting targets to help you reach the benchmark values you aspire to. For more information on target-setting, see the page in this guide on how to set useful targets for your business.
Measurement in the manufacturing sector The manufacturing sector is one in which there is significant scope for performance measurement, as most aspects of the production process can be accurately measured in quantitative terms. An indication of the way manufacturers can measure their performance is provided by the Quality-Cost-Delivery QCD system. This comprises seven key measures which between them capture some of the key drivers of most manufacturing operations.
The seven QCD measures are: Not right first time NRFT - this is a measure of the rate of defective units being produced. The higher it goes, the greater the waste of resources and the greater the risk that customers will be inconvenienced.
Stock turns ST - this gauges the number of times a business sells and replaces its inventory. Higher stock turn rates indicate that a business is operating efficiently and not tying up resources in slow-moving inventory. Overall equipment effectiveness OEE - this is a way of measuring whether you're making the most of a piece of machinery.
It combines three elements - the amount of time the machine can be used, the rate at which it is operated and the proportion of its output that is defective.
People productivity PP - this measures the number of worker hours taken to produce each unit of output. However, PP also distinguishes between valuable and wasteful production - this to ensure that productivity figures aren't skewed by the overproduction of units for which there's no customer demand.
Floor space utilisation FSU - this measures the level of revenue generated per square metre of factory floor space. It reflects how efficient a business is at minimising its fixed costs.
- Set Rigorous But Achievable Targets
- 2.1 Defining goals
- 2.2 Identifying goals
Delivery schedule achievement DSA - this measures your success at delivering the goods your customers have ordered to the schedule you have promised them. Value added per person VAPP - this measures the amount of value the manufacturing process adds to raw materials and compares it to the number of people involved in the process. Like PP above, it is a measure of employee productivity. How to set useful targets for your business It is just a small step from measuring your performance to the much more dynamic process of driving up performance levels across your business.
to meet targets definition | English definition dictionary | Reverso
This involves setting performance targets in the key areas that drive your business performance. For more information about these business drivers, see the page in this guide on deciding what to measure. Key performance indicators KPIstargets and business strategy Performance targets are a powerful management tool that can help you deliver the kind of strategic changes that many growing businesses need to make.
The top-level objectives of your strategic plan can be implemented through departmental goals, and setting targets based on KPIs is an ideal way of doing this.
For example, a company seeking to expand on the basis of its product design capabilities might target year-on-year increases in the number of patents it secures, of new products it launches, or of its licensing income.
The specifics will depend on which KPIs best capture the dynamics in the market. Using KPIs ensures your targets will meet the first two criteria, as all KPIs should, by definition, be specific and measurable.
For more information about KPIs, see the page in this guide on choosing and using key performance indicators. Achievable - you need to set ambitious targets that will motivate and inspire your employees, but if you set the bar too high you risk deflating and discouraging them instead. Look back at your performance data for recent years to get a sense of what kind of performance boosts you've seen before - this will give you a sense of what is feasible.
Realistic - setting realistic targets means being fair on the people who will have to reach them.