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Annual Targets 2020: How to Set & Test These Metrics

By Jessica Wishart

    Fri, Jan 31, 2020 @ 09:00 AM Annual & Quarterly Planning, KPIs & Dashboards

    As Chris Cosper detailed in a previous post, we have the ability to record 3 types of metrics in our Rhythmtarget-211225_1280 cloud based strategy platform:

    We focus a lot on KPIs and Critical Numbers, but we don’t talk much about targets.  Targets are a handful of goals that we determine and strive to achieve over a set period of time; they are usually set during Annual and Quarterly Planning sessions.  We recommend setting Targets for your 3-5 year plan, your Annual Plan, and your Quarterly Plan.  Targets are always lagging, or results indicators.  They should align with your budget, and they may come from financial goals that you have to hit from your board of directors or for your shareholders.  They are often longer-term goals, and sometimes they can be more strategic in nature than your KPIs. 

    For example, you may set a target in your planning session to open locations in 25 states in the next 5 years.  This would not make sense to record on your KPI dashboard to update weekly; it is a more strategic result.  Rather than recording it on your KPI dashboard, it might make more sense to develop a Winning Move around expansion in your 3-5 year plan.  Then, you can set Annual Key Initiatives and Quarterly Priorities that support that Winning Move so you can execute to achieve your strategic Target of locations in 25 states.

    Here’s How to Set Annual Targets: 

    This exercise is part of our recommended agenda for quarterly and Annual Planning.

    Here’s How to Test Your Targets:

    • Do you have a plan for hitting your Annual Targets?
      • Do you have KPIs for targets that need to be measured on a quarterly basis and updated and discussed weekly?
      • Do you have Key Initiatives or Priorities to support your more strategic or tactical Targets?
    • Do you have too many Targets? (Remember that focus is the key to successful execution; identify the most important targets and try to stick to only 4 or 5 to track at a time.)
    • Have you communicated your Targets to the company as part of your Annual or Quarterly Plan?

    Setting clear targets for the team that are both financial and strategic and recording them in Rhythm is a great way to communicate the results you hope to achieve to everyone in the company.  Once you all get on the same page about where you want to go, you are one step closer to executing and achieving that goal!

     

    Free Comprehensive KPI Guide For High Performance Team Alignment

    Looking for some additional KPI Examples to help get you started? 

    Rhythm Systems KPI Resource Center for all you need to know about Key Performance Indicators.  Looking for some KPI Examples to help get you started? Check out our additional KPI and KPI dashboard blog articles:

    Comprehensive List of 179 KPI Examples for Any Industry

    4 Steps to Create a Leading Indicator KPI

    21 Production KPI Examples to Improve Manufacturing Performance

    27 KPI Examples for the Staffing Industry

    How top CEOs Close the Strategy Execution Gap

    5 Simple Steps to Create Useful KPIs (Video)

    10 Best Employee KPI Examples

    5 Tips to create, evaluate and use Key Performance Indicators (KPIs) to drive results in your business

    33 KPI Examples to Measure Productivity & Prevent Organizational Drag

    Employee KPI Examples: How to Measure What (or Who) You Want to Move (Video)

    KPI Examples for Successful Sales Teams

    Comprehensive Guide for KPI Evaluation

    Marketing KPI Examples

     

     

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