Studies indicate that setting a goal, sharing it with others, and having an accountability partner increases the probability of achieving them by 85% percent. Then why do most organisations find themselves in a constant state of over-promising and under-delivering, especially in terms of performance goals?
Let's look at some hard facts:
- More then 50% sales people do not meet their annual quotas
- Sales productivity has decreased from 41 percent six years’ ago, to 36 percent in 2016
Goal setting is a tedious strategic process, that asks organisational alignment of roles and consequences with a common idea of success.
Here are the four most common reasons why organizations both big and small create Specific, Measurable, Achievable, Time-bound goals, but some never seem to achieve them.
1. The Goal Itself
Companies do not have an inalienable right to dream the impossible dream and set any goal. From the moment a company decides to enter a particular segment of the product or capital market, its competition imposes limits and sets conditions on the goals it can realistically attain.
-Harvard Business Review.
Achievable is one aspect of the goal management process that often becomes subjective. The point when human brain start acting human and says everything is achievable. Reasoning says "but wait! what about customer, competition, channels, collaborators, and the context?" The gullible motivated human goes "I HAVE ALL THE CONTROL".
2. What happens after missing the goal
How does the organization at all levels react to missing the goal? Well if a sales person doesn't meet his quota he/she doesn't get the moolah. So instead of figuring out the root cause and giving timely feedback, managers and employees simply say let's try harder this time, keep the same goals and consequences, and move on. The cycle continues
Gallup estimates the cost of poor management and lost productivity from employees in the U.S. who are not engaged or actively disengaged to be between $960 billion and $1.2 trillion per year. The reason is simple: the traditional performance systems have failed the test of time. 79% employees in the U.S. feel that their performance system is not at all motivating instead they feel they have no control over it.
The above two reasons also add on to disengagement, as majority workforce starts feeling fatigue of trying harder and harder without any upgrade in the situation.
4. Cognitive Dissonance
Cognitive Dissonance is the state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioural decisions and attitude change. Cognitive dissonance at a personal level hampers an individual employee's performance and is deeply associated with the individual mindset. Whereas at an organizational level cognitive dissonance becomes a blood sucking parasite where misaligned goals result in rivalry, confusion and an overall decay of organization culture. Identifying and removing points of dissonance will result in an instant improvement in the achieve-ability of the goals
5. Lack of Transparency
Some times, it's as simple as not knowing where you are that causes people to slow down and get complacent. More often than not, organisations have long appraisal cycles where the discussion is more on justifying the feedback then agreeing on an action plan. The organizations that have implemented real time performance measurement systems have seen an overall performance increase of 20-30%.
Playlyfe's product Catalyst provides the much desired transparency in the Sales performance management processes using automation and CRM integrations. Its data driven approach provides the real picture of an organisation's sales goals at every step of the sales process and the gamification elements like contest and TV Channels keeps the troops motivated and engaged the whole time.