Several years ago I wrote an article for AAHSA, the American Association of Homes and Services for the Aging. As articles do over time on the internet, this one seems to have become very difficult to locate, so I am rehashing it in this forum.
Most organizations have an annual strategic planning process. Their board members and executives normally discuss these objectives on a regular basis. Strategic level goals are not normally written in a way that easily translates into decision factors for front line employees, so how do you help front line folks make the decisions that drive strategic success? Here is a proven methodology that has shown to be successful over and over again.
First: Your Board of Directors and/or Executive Team sets (normally) 5 to 7 strategic goals for the year. These goals are designed to address the most pressing needs of the organization and your customers, and also to have the most potential impact on your success. These tend to be high level goals impacting EBITDA (Earnings before interest, taxes, depreciation, and amortization), market share, business model change, and internal high impact metrics. High level goals are not always easily translatable into front line action. However, it is not only appropriate, it is vital for organizations to set these top level goals. The Executives then brief and educate their teams, especially their direct reports, on the top level objectives.
Second: The next level of the organization's leadership (often grouped by department or function) meets to review and discuss the top level goals. A new set of goals, built on the strategic goals, is developed. This group's work develops the same number or a smaller level of key goals. The goals are articulated in a manner that reflects the span and scope of control of the group. Once complete, these goals are reviewed and approved by the executive responsible for this department/function to assure understanding of and alignment with the higher level goals. Once approval from the executive is obtained, this level then cascades their goals to the next level.
Third: The cascading process continues for each layer of the organization, until it reaches the team level. It is critical to remember that strong facilitation must be in place to assure alignment with higher level goals. It is also critical to assure that no more than 5 to 7 (preferably no more than 5) goals are established at each level. Each level of goals must be reviewed by the level above.
Fourth: (This is the easiest step to achieve failure!) On at least a monthly basis, the 5 goals are reviewed with front line employees. This provides the opportunity for feedback and discussion, as well are reinforcement that these goals are important at the individual level. While executives may only discuss their strategic goals quarterly, front line employees need guidance and engagement to assure they are driving the results the organization must have.
Fifth: Include the achievement of these goals into your annual performance management process. They do not have to be tied into unique monetary rewards (merit rewards will be the topic of a future blog) they should be a part of any formal process your organization uses. This demonstrates that the Line of Sight goals are important, and hard wires them into your culture and processes.
This process is not a super time consuming process- most organizations can accomplish this from beginning to end by addressing three or four levels of meetings. Assuring Line of Sight provides decision making tools to front line employees, who, when faced with multiple options, will be better able to choose the option that best supports strategic direction.
When we all pull in the same direction, getting to the destination is easier and far more satisfying!
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