Why Performance Targets are Necessary

Results measurement drives focus. And targets help to determine whether results are acceptable.

Performance targets are necessary for two main reasons. One is customer facing, the other is internally focused.

First, targets set the standards on how a business serves its customers.

For example, the customer support exceeds the target queue time. The manager works with her team to find ways to shorten it. As they roll out the changes, they continue to monitor queue time closely to evaluate the effectiveness of their actions. To the support centre, queue time matters because it is an important driver of customer satisfaction.

The second reason for performance targets is they provide guidance on what a business needs to focus on internally to support its business goals.

For example, a construction company has a high staff turnover. The performance target helps to determine whether immediate action is required. Hiring and training are costly, and turnover affects morale also. If the comparison shows that immediate action is needed, resources will be allocated to address the problem.

This is why performance targets are necessary for every business. Without them, performance deterioration might not be detected and addressed in a timely manner.

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