Goal setting would be a hot topic during board meeting, top management discussions etc.But are we getting expected benefits, end of the year? Are we approaching goal setting seriously? Are we really extracting KPA/KPIs from corporate goal statement or KPA/KPIs are just 'well defined beautiful sentences' only?

The channel I am looking at is “Corporate Goals – Business Unit Goals –Functional Goals- Team Goals – Individual Goals"

Corporate Goals

1. Acquiring 3 Competitors in Middle East by Q3, 2010
2. Improve overall plant productivity by 30%by Q4, 2010
3. Reduce production wastage to 2% from 10 %by Q4, 2010
4. Increase market share from 25% to 60% by Q4, 2011
5. Achieve USD 150 million business turnover by Q4, 2010
6. Achieve best employer award for 2010
7. Realign workforce and reduce redundancy to 2% by 2010
8. Achieve 6 Sigma certification by Q4, 2010
9. Achieve cost reduction for USD 25 million by Q4, 2011

Business Unit Goals

Rubber EOU 1 - Goals

1. Improve plant productivity by 35% by Q4,2010
2. Reduce production wastage to 2% from 10 %by Q4, 2009
3. Realign workforce and reduce redundancy to 1% by 2010
4. Achieve 6 Sigma certification by Q4, 2010

Rubber Domestic - Goals

1. Improve plant productivity by 40% by Q4,2010
2. Reduce production wastage to 2% from 10 %by Q4, 2009
3. Realign workforce and reduce redundancy to 1% by 2010
4. Achieve 6 Sigma certification by Q4, 2010

Healthcare Products-Goals

1. Improve plant productivity by 15% by Q4,2010
2. Reduce production wastage to 2% from 10 %by Q4, 2009
3. Realign workforce and reduce redundancy to1% by 2010
4. Achieve 6 Sigma certification by Q4, 2010

R&D- Goals

1. Renovate Product X54 to attract EU customers by Q4, 2009
2. Test launch of 5 new products by Q4, 2009
3. Add 2 more teams in R&D by Q4, 2009
4. Develop a new QA tool for health care products by Q4, 2010

Functional Goals

Production

1. Streamline production process; outsource non core activities by Q3, 2010
2. Introduce night shift by Q1, 2010
3. Reduce production wastage to 1% by Q4,2010
4. Redesign shop floors, introduce efficiency and reduce IR issues by Q4, 2010
5. Add 50 new engineers in back up resource pool by Q3, 2010

Human Resources

1. Streamline HR processes to realign HR to make a performance driven workforce by Q4, 2010
2. Hire 5 HR coordinators, induct them in 5shop floors to reinvent shop floor HR and IR activities by Q3, 2010
3. Implement HRMS and outsource all non core HR activities by Q1, 2011
4. Fill 150 positions (anticipating business expansion) by Q4, 2010
5. Start in house training center by Q2,2010
6. Finish Training Need Assessment and Profile GAP assessment by Q1, 2010
7. Trial run for audit for Best Employer Award by Q2, 2010
8. Introduce retirement scheme for redundant jobs by Q1, 2010
9. Achieve workforce realignment and reduce redundancy to 2% by Q4, 2010
10. Achieve HR cost reduction for USD 10million by Q4, 2010
    

Team Goals

HR - Corporate HR

1. Streamline HR processes to realign HR to make a performance driven workforce by Q4, 2010
2. Implement HRMS and outsource all non core HR activities by Q2, 2010
3. Trial run for audit for Best Employer Award by Q2, 2010
4. Introduce retirement scheme for redundant jobs by Q1, 2010
5. Achieve HR cost reduction for USD 10million by Q4, 2010

HR-Shop floor

1. Finish Training Need Assessment and Profile GAPA Q1, 2010
2. Achieve workforce realignment and reduce redundancy to 2% by Q4, 2010
3. Trial run for audit for Best Employer Award by Q2, 2010
4. Achieve HR cost reduction for USD 10million by Q4, 2010

HR Recruitment, Training& Development

1. Hire 5 HR coordinators, induct them in 5shop floors to reinvent shop floor HR and IR activities by Q3, 2010
2. Fill 150 positions by Q4, 2010
3. Start in house training center by Q2,2010
4. Trial run for audit for Best Employer Award by Q2, 2010
5. Achieve HR cost reduction for USD 10million by Q4, 2010
   

Individual Goals

HR - Corporate HR(Process Manager)

1. Collect information on existing processes, copies of forms, policies, rules etc by mid of Q1, 2010
2. Feedback from functional heads and HR team to prepare draft process manual by end of Q1, 2010
3. Arrive at a consensus on processes and policies at functional management level with recommendation for streamlining by end of Q1, 2010
4. Feedback from Employee representatives on processes and policies with recommendation for streamlining by start of Q2,2010
5. Feedback from Business unit heads on processes and policies with recommendation for streamlining by mid of Q2, 2010
6. Draft of new processes and policies by mid of Q3, 2010
7. Feedback from all stakeholders on new processes/policies by end of Q3, 2010
8. Finalization of processes and policies by end of Q3, 2010

Further to this, KPAs and KPI/s for each KPA can be extracted from Individual Goals.Eg: - If you take goal -''Draft of new processes and policies by mid of Q3, 2010'', following KPA and KPIs can be extracted

KPA - New processes and policies - Draft

• KPI1- Draft process for Employee communications by Jul 2010
• KPI2- Draft process for Industrial Relations Aug 2010
• KPI3- Draft Policy for Leave and Attendance Sep 2010
• KPI4- Draft Policy for Performance Incentives and Bonus Oct 2010 etc..

If you have a systematic approach in managing goal setting, identifying KPA/KPIs, over a period of time,you would be able to know, your organization’s real strengths and weaknesses and ‘Goals Data’ can speak about organizational performance.

What do you think? Is this a feasible approach? If not, please share your suggestions for improvement?