I read a great editorial by Dave Johnson in the June issue
of Industrial Safety and Hygiene News
(a publication I submit trade articles to a few times a year). The editorial focuses on what happens when
companies have explicit goals with a zero in them. Zero injuries. Zero defects.
Zero customer complaints.
The problem with these absolute goals is that when employees
are under the gun to achieve perfection, it increases anxiety and stress to
levels that can hurt performance on all dimensions, not just the one that is
supposed to be zero. The pressure is
extra high for a zero goal because you could have perfect performance for 89
days and then on the last day of the quarter some random event that you have no
control over keeps you from achieving your goal. There goes your positive
evaluation, your chance of promotion, or your merit raise. This kind of pressure can focus attention so
narrowly that other things slip by.
Another problem with absolute goals is that they are often
great long term objectives but unrealistic in the short term. A new CEO takes over a company with a really
high frequency of customer complaints and wants to shake things up. So she implements a new goal of zero. But there is no way anyone will hit this
number right away when the history is so bad.
It just takes time to change the processes, the mentality, and the company
brand in the customers’ eyes. So the
immediate goals need to be more attainable.
When there is no chance of making a goal, employees often don’t even
bother to try. In this case, you never
get to zero. Or, employees will cover up
defects and injuries or fudge the numbers.
Injuries become “visits to first aid for a bandage” so they don’t
count. The untreated injury gets worse
and more expensive to treat later.
Instead, he suggests something like this for a high level strategic goal “We are striving
for zero because this company is striving to be world class, best in class, in
all facets of the business. We will give
you the tools, the training, the support and the freedom to come up with your
own ideas to reach zero injuries, zero customer complaints, zero product
defects, zero downtime. If we don’t get
there, we’re going to get damn close enough to make an unmistakable positive
difference for you personally and for the business.”
And then in the actual
Performance Management System (some of my previous ideas on these here) be realistic and
use best practices for goal setting.
Then you get the best of both worlds.