In Defence of Target Setting

I have read multiple blog posts about how bad it is to set annual targets and even worse to tie them to monetary rewards. I agree with most of those writings. But still I find myself motivated by targets.

Maybe this depends on how the targets are set. I see a sales budgets as a suboptimal solution (for the company). As a salesman, why on earth would you care how much it costs to develop something you sell? Even if it doesn't exist yet. And you can even give the customer a big fat discount. It's anyway better for you to close the deal than not to.

For sales teams I'd definitely like to have some targets that take into account the overall situation of the company better, the big picture. In addition to the money received from the customer, also the amount of work needed to deliver the product should be taken into account. Preferably the sales bonuses would be counted AFTER the product has been delivered and measured how much the sale really affected the bottom line of the company.

But let me get back to those individual targets that I was excited about. I can openly admit that I have plans for the future. In my role I get to actually affect the operations in my company rather much. I have a vision how I’d like to see things happen. And I spend a lot of effort to make that vision come true.

Then let’s say this vision is well in line with the overall company vision. Both aim to make the company profitable while delivering high quality and desirable products for the customer. In this case I see the target setting as a win-win deal. My internal ambition and the benefit of the company go hand in hand. That's why I have a good feeling that we will both will help each other out.

In short my message is: targets aren’t bad. They are like chainsaw. You can use one to cut trees or for a massacre. Let’s hope the chainsaw is in good hands.