Unraveling the Misconception: Goals are not just Numbers

The following article is a translation of the article previously published in Japanese on the Toyo Keizai website .

Numbers matter in business. When it comes to setting goals in the workplace, at the beginning of a term, each department and employee is often given numerical targets. However, many managers may mistakenly think that assigning numerical goals is their only task, and employees will simply strive to achieve those predefined objectives.

Setting goals and how they are communicated provide an excellent opportunity for managers to showcase their skills. Depending on the company, goals are set from above, using Key Performance Indicators (KPIs) and Management by Objectives (MBO) - where goals are set independently by team members but managed from above. How does your organization set goals for employees?

Numbers and the feeling of being compelled to act

It is common to set goals by adding a slight surplus to the results of the previous year, for example, "Last year's goal was 100, so this year's goal is 110." Managers often convey these predefined numerical targets to team members as they are. However, simply presenting the numbers does not resonate with team members who may not understand why they should strive for these goals.

If the feeling of being compelled to perform duties increases without experiencing satisfaction from achieving goals, employees will not be able to work in accordance with their own principles, and their psychological safety will naturally decline. In the long run, the team's productivity will also decrease.

This does not mean that goals can be any randomly proposed targets by team members - that approach would not be viable for managing a business. So, what should managers do?

Instead of merely communicating numerical targets, it is better to devise ways for team members to embrace these goals as their own. For example, by imagining how they can develop and be appreciated by customers. When employees realize that they want to achieve these outcomes, their motivation will increase.

"What benefits will achieving this goal bring?"

"What value do you want to deliver to your customers by achieving this goal?"

"What results do you want to achieve by completing this task?"

"What do you want to learn and gain from this job?"

Even when goals are set from above, there should be opportunities for learning through work, contributing to society, and satisfying personal aspirations. Through dialogue, it is essential to encourage team members to reflect on the significance of achieving their goals.

Process management - the role of managers

Regardless of the goals set, they can lead to learning, growth, creating new opportunities, and adding value to society. When team members understand this, they can work in their own way with increased motivation.

Achieving results requires being firm and demanding, with attention to accomplishing intended actions. However, when it comes to goal setting, it is necessary to consider alignment with employees' motivation and skills. The next step for managers is to support performance and help employees reach their goals. This process management is what managers should do to increase psychological safety in the workplace.

Even if goals are set from above, when team members feel that their work is meaningful, and the assigned tasks hold value for them, their motivation increases. Furthermore, it is vital to offer employees choices. Therefore, during goal setting, it is beneficial to allow them to freely decide how to achieve those goals. In other words, decision-making regarding the process of achieving numerical targets should be entrusted to team members.

When employees can choose their preferred way of working and enjoy the process, their motivation increases. Additionally, when they choose challenging actions for themselves, it contributes to their personal growth.

Having the ability to choose and making decisions freely allows employees to engage more and approach their responsibilities with greater enthusiasm. This is undoubtedly crucial for psychological safety.

People want to grow

People have an instinctive desire for growth.

"I want to be better today than yesterday and tomorrow better than today."

"I want to achieve better results tomorrow than today."

I think everyone has similar thoughts.

With this desire in mind, team members naturally start actively improving their ways of working, acquiring new skills and tools, to achieve even better results.

That's why I believe that goals should be set in a way that allows team members some autonomy in the process, rather than rigidly imposing them.

This article is a reference to my Japanese book “心理的安全性 最強の教科書 ”?- "Psychological safety. The guide to high performing teams"