Self-assigned goals that are later reviewed and discussed with the manager have a whole host of benefits, which could probably be a session in itself. Let's just say that I'd rather have an employee who has thought through my goals and objectives and come up with solutions and supporting goals of his or her own, instead of dictating a set of goals that may never be thought through with any level of detail or commitment. Again, we're empowering people to be creative and set their own direction, but with guidance from their manager after he or she has listened, rather than dictating.
The goal assignment process assures the top down alignment and translation of strategic, boss-initiated goals, to lower-level tactics and operatives. This translation process is critical to the achievement of understanding and buy-in. It is based upon translating your vision and strategies into attainable "line-of-sight" goals for all employees including metrics, leadership competencies, and MBO goals.
"The power of employees who are in support of company objectives is the catalyst sparking genuine improvement." (Beiersdorf, Inc., IndustryWeek winner)
Performance alignment eliminates most obstacles that prevent an organization from achieving its goals. Empowered employees focus efforts on achieving their concisely defined goals, knowing the basis on which their stakeholders will hold them accountable. I should give you the Retcar definition of performance alignment before I go any further.
Performance alignment, in simple terms, is the execution of an organization's business plan. The plan is
used to allocate the necessary resources. Goals are translated from the plan and aligned with the resources, and accountability for these goals is assigned to each employee. Results are closely monitored to identify opportunities for organizational development. The assessed results drive the ongoing cycle of realignment, realloca-tion of resources, and revised goals.
So far, I've talked about Retcar's alignment process and the assignment of goals. Now we need to discuss accountability and assessment at Retcar, to cover all aspects of the performance alignment definition.
Through our goal assignment process, everyone takes on responsibility for his or her share of the overall company strategy. The vision becomes a part of the very fabric of our organization. Everyone knows his or her roles and responsibilities and is held accountable. And at Retcar, they are held accountable by their stakeholders, not just their manager or team leader.
How does that work? Well, you recall that we used our software tool to set up reciprocally confirmed in-terdependencies or working relationships. That mechanism is also used to share and understand one another's goals. Part of that dialogue is devoted to understanding how the interdependencies affect achievement of one another's goals. We learn how we impact one another.
Because we have fully defined our interdependencies, we have fully identified all stakeholders. In other words, we at Retcar can hold everyone accountable for their piece of our strategic vision, because we have identified who is affected by our execution or lack of execution. We have identified stakeholders, and we have given them the ability to provide feedback to everyone in our organization with whom they share a material business relationship.
In the pursuit of performance alignment, Retcar has bridged the gap between leadership development and performance management by expanding on the concept of multi-rater feedback. We systematically linked employees with their providers, customers, teammates, boss, and staff, and gave them the tools to provide feedback. And it's not just feedback on developmental issues, but feedback on how they've executed their goals related to the company's strategic vision.
Feedback comes from stakeholders, who are dependent upon the recipient of that feedback to accomplish their own goals. It couldn't be a more meaningful measurement of how well your organization is executing its vision. It has helped Retcar to truly understand for the first time why a goal wasn't met, and where we went wrong. We can diagnose our developmental opportunities for specific employees and groups and across the entire organization.
Retcar has actually been developing and refining our concept of performance alignment over the last 10 years. We implemented a semi-automated version of it in 1996, and have since evolved it into an in-house developed software tool. Retcar's strides towards alignment in that timeframe have helped take it from number three to number one in the HVAC air impeller market. Profitability has grown at a rate far surpassing the rate of sales growth.
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