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Home > Get Ideas > Incentives 101 > Before the Goal

 
BEFORE THE GOAL
1. Set your goal.

The difference between a goal and a dream is the written word. -- Gene Donohue

Setting realistic goals will be one of the most important steps in running a successful incentive program. If you follow a few simple steps, you can effectively create a clear program.

  • Set realistic goals. Whatever you are striving for -- be it a sales quota, safety goals, number of recruits, etc. --the goal has to be high enough that people will have to reach for it, but not so high that is impossible for a good portion of your team to accomplish. Don't set it so low that it won't create excitement and people won't feel motivated to do their best. According to Edward E. Lawler III, in his book Rewarding Excellence:
    Setting performance goals that are too easy can result in suboptimal performance because individuals feel that once they have achieved the goal, they need to do no more. Stretch goals can be powerful motivators if they are not so difficult that the individual feels they are unachievable. This leads to the suggestion that when only one performance goal is set for each measure, it should have at least a 20 to 30 percent probability of being achieved. Better yet, for each performance measure, multiple goal levels should be set, with reward size increasing as goal difficulty increases.
  • Set specific goals. Be clear and precise. Goals have to be measurable, and you should be able to track milestones by quantitative measures. For example:

    Vague Specific
    Sales: Increase sales by end of March $12, 000 in product sales by March 31st
    Product: Release product by early April Product release by April 1st
    Recruiting: Increase number of recruits Place 10 new recruits by July 15th

  • Set goals that reflect your company values.
      Buy the Book, Rewarding Excellence -Buy-  
      Creative Solutions for Company Culture -Read-  


    • Does your company value smashing the competition?
    • Does your company strive to promote a positive
      presence in the market?
    • Will this promote a positive image to your clients?
    • Does it reflect your employees' values?
    • Is the goal something they would really want to achieve?
    • Does the goal reflect your employees' values?
  • Make it a positive goal. Consider these comparisons:

    Negative Positive
    "Let's not let sales' opportunities slip away" "Reach $12, 000 in sales for this quarter."
    "Don't miss the deadline on the 1st." "The product will be out the door on July 1st."

Go for the Goal! By now you should have a clear statement for your incentive program goal? What is it?

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