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Goal Setting

By Philip B Crosby
Chairman, Philip Crosby Associates II
Reprinted ,with permission, from chapter 9
"Cutting the Cost of Quality" Silver Anniversary Limited Edition
Goal Setting is one of the most practical management tools for improvement. People continually underestimate their abilities to achieve, and as a result, they set their goals too low. By a proper approach to Goal Setting, managers can help their people raise their sights. It is well known that achievement is more than the result of merely trying hard. Sisyphus tried hard and is probably still at it. Yet he never achieved his goal because he never changed methods. Besides, if he had gotten that rock to the top of the hill, what would he have done with it? To achieve we must try hard in a guided fashion and have a clear purpose in mind. We must have a method of defining our total goal and then breaking it down into short-range activities necessary to accomplish the long range.

What is a goal?

A goal is the description of a situation that is desirable to achieve. lt's something we want to do. It doesn't have to be dramatic or complicated. We set them for ourselves every day. Have you ever heard anyone state these goals?
bullet"I'm going to lose 10 pounds!"
bullet"Give me that 3 wood, I'm going for the green."
bullet"Let's take a vacation in Europe next year."
bullet"There will be no crabgrass in my yard next year."
bullet"Let's get this done before the end of the shift."

These represent fairly short-range goals, but the purpose of announcing them is the same. To provide moral support for some specific achievement, a goal must be announced if it is to be effective.

Why is a goal?

Success is only a phrase used to describe achievement. If you don't state your plan before you start, how will you know when you're done? People like to follow a path, even if that path is nothing more than a distant glimmer of light. So if you want them to accomplish something you must give them a beacon to move toward. A goal serves this purpose.

When I was a child my friends and I would go to the movie on Saturday afternoon, as many of that generation did. Invariably we would succumb to temptation and use our streetcar money for candy. Just as inevitably we would then have to walk home, a distance of several miles. The walk could be drudging, and hungry. Or it could be accomplished quickly, with pleasure. The difference between these two extremes lay in the discovery that the way to get home was not to set out with that goal as our immediate objective. We would first walk to the firehouse. Then to the park and a brief visit to the small zoo.

After that several blocks of window-shopping led us to the railroad trestle which added the final challenge to the day's activity. Over the trestle and down the hill was home. Just a quick trip from the theatre.

The same method can be followed in helping people accomplish through Goal Setting. Establish short-range goals as steps in reaching the long ones.

How do you say a goal?

I have read many mushy goals while peering through contemporary business papers. The typical "hard-hitting" departmental goal reads something like:
bulletImprove customer relations this year.
bulletEncourage personnel development.
bulletIncrease sales in the Southeast territory.
bulletReduce rework.

The nicest thing about these goals is that you won't have to pay any attention to them. They aren't measurable, and thus require no effort. A goal must be specific.

When the late President Kennedy announced our country's goal to get to the moon, he could have said something stirring and unspecific like: "We will plant the American flag on the moon." That would have opened all kinds of possibilities, none of them measurable except the end item of somehow getting a flag up there (and who could see it?. What he did say was: "We will place a man on the moon, and bring him back safely, in this decade. "That describes the whole project in one sentence. It permits definition of the task in terms of scope and time. It doesn't count unless you bring a live man back, preferably the same one you sent up. And it had to be done before the last day of 1969.

Let's take the unmeasurable goals mentioned before and see if we can put some teeth in them:
bullet"Improve customer relations this year by reducing customer complaints from an incidence of 10 per week to two per week."
bullet"Encourage personnel development by assuring that each employee attends at least one company sponsored course during the year."
bullet"Increase sales in the Southeast territory 15 percent over last year without increasing the sales staff."
bullet"Reduce rework by dropping it from an expense equal to 3 percent of sales to .5 percent of sales during this year."

Now, those goals can be measured as we move along. You can calculate the customer complaints each week, plot them on a trend chart and know how you are doing prior to the end of the period. The same approach can be taken with the other goals.

How do you select goals?

The profitable goal setting and achieving operation is founded on teamwork. The people involved must help select the goals, and they must be responsible for goal attainment. The first step in selecting is to develop an atmosphere that lets people release their natural creative ability.

It is not proper to go into lengthy discussions of brainstorming and other group thought devices at this time. The main reason it is not proper is that these techniques have very little place in the kind of environment you require at this point. It is one thing for the manager to sit with his staff and search for goals. It is quite another when you are talking about hourly or first line supervision.

They are not going to believe that you really want some practical goals at first. If they do eventually believe that then they will be concerned about having their performance measured according to the success they have in meeting the goals selected. Everyone knows how that works. The discussion leader's task in this case is to provide reassurance, state what a goal is and why. Then he should listen while the people find their own way to the establishment of some goals they really want to shoot for. The only time he should reintroduce himself into the discussion is if the goals selected are not within their control or if they are being too timid. Some guidelines to give them:

1. A good goal is positive and useful.
Not: Our goal is to never ever make a mistake.
Instead: Our goal is to reduce errors 37 percent. If the first goal is selected it will prove to be negative since no margin for error is permitted.

2. A good goal is within the realm of reason, although not too easy.
Not: Our goal is to be able to lift 5,000 pounds with one hand.
Instead: Our goal is to win the Housekeeping Award.

3. A good goal is precise and measurable.
Not: Our goal is to be best.
Instead: Our goal is to be first.

4. A good goal can be reported easily and understandably.
Not: Morale is improving.
Instead: The turnover rate is down 17.6 percent.

How do you establish goals?

Selecting a goal target area is one large part of the battle. But establishing the specific goals is another. Once the personnel understand the intent of the effort and have an idea of what a goal is and isn't, it becomes time to get specific. As a manager, you can assist in selecting goals by pointing out areas in which the operation performance is measured by others. This measurement falls into three basic areas: Schedule, Cost and Quality. Explain to the group some of the considerations in each of these areas that are important in your company. This puts everything in a day-to-day frame of reference. When they begin to cogitate remind them that there is always a better way or method. In reality there is always a "slop" or extra degree of tolerance in every operation. You need only slice off a little of that to reach your goal.

How do you attain goals?

It was stated earlier, and I hope agreed, that achievement is a result of more than trying hard. If higher goals are to be attained we must first understand what stands in the way of achievement. What has to be done that we have not been doing up to now? Take a simple goal like winning the Housekeeping Award. That could apply to any area. The first thing you have to ask is: "Why haven't we won it in the past?" You will probably find that there are a lot of little reasons rather than one big one.

Every time the ratings come out you have a different small item that keeps you out of first place. As a matter of fact, when you evaluate the causes of rework, scrap, missed schedule, overruns or any other thing you will usually find that a relatively small number of items are causing most of the problems. If you take these individual items and categorise them you may find that they occur due to one major cause. You might discover that you are not winning the housekeeping prize because there are no wastebaskets. More than likely though you will be faced with a situation caused by apparently non-related "random "incidents. It will be difficult to assess or define a specific action to remove these isolated items. The answer is simple: ignore them. What you are after now is a breakthrough, not a patch job. Random items provide ironclad excuses if you take them seriously.

Concentrate instead on improving the level of participation in housekeeping. Develop a whole new approach. Make it a major concern rather than a minor task. As an example, a suburban housing development had a problem of people driving too fast through the area. They weren't driving fast in the highway sense, but even 30 mph is too fast in an area heavily populated by children and pets. People who were stopped during the frequent police drives always had a different reason for driving fast. They forgot, they had a sick friend to see, the accelerator stuck, the policeman's speedometer was wrong - and so on far into the night. Nothing worked because there was always a reason.

After reaching the ends of their ropes the village fathers finally tried an entirely new approach. They installed speed bumps. They built raised humps across the roads at random points and installed large signs stating that the bumps could be taken comfortably at 15 mph but no higher. Speeding stopped immediately because those who drove too fast received a nasty jolt.

This approach dealt with the heart of the problem and completely eliminated the excuses. It is this kind of thinking that must be applied by people if they are to achieve difficult group goals

When a group comes together to attempt to define a method of achieving a specific goal they may come up with some wild suggestions. But people like to be imaginative, so listen to all the ideas and eventually one or more will work out. They will know it when it happens, it will excite them. Help them set up a schedule of achievement with a completion date. Post the challenge in a conspicuous place. The supervisor's job is to keep his eye on the ultimate target while helping his people accomplish the immediate goals along the way.

Boy Scout leaders announce a trip in terms of route and length of march. They define the number of meals to be cooked, the equipment to be transported and help the boys arrange their gear. The result is a field trip that provides enjoyment and a feeling of accomplishment for boys and leaders alike. The real goal of the trip is more likely to be to teach the boys to live independently in the woods using nature's provisions. This is part of the ultimate goal of becoming a man. However, if you tell a small boy that you expect to make a man of him in the next three days he will bug out of the trip. He is not interested in that just yet.

People usually act that way when it comes to industrial goals. A little challenge excites them, too much frightens them. Therefore, we must break the larger goal into segments that are readily attainable, and continually remind our people that they want to be first, not average. Let them select someone to be the goal leader. His name on the board opposite the goal will bring out the tiger in any man. How can they measure their goal?

Once the goal has been set it is the supervisor's responsibility to see that progress is communicated to the group. How do you measure achievement?

The supervisor must help his people select and clarify their goals, but, as much as possible, the original ideas should come from them. The degree in which the group is actually involved in setting initial goals should be based on an objective analysis of the group by the supervisor. It is his responsibility to see that progress is communicated to the group. For example, let's say that one goal is: "Reduce total rework cost 50 percent over the next six months."

This goal can be expressed in chart form for the greatest effect. All you need to know is the present amount of rework. This information should be obtained from the Accounting or Quality departments even though you as a foreman may keep your own records. The reason for obtaining them from a non-involved source is to add authenticity.

Other goals that also lend themselves to charting may be displayed side by side. The inventive supervisor can develop many ways of displaying his goals. A scrap barrel placed in the middle of the work area, painted a bright expensive-looking colour can serve as a stimulus toward meeting the scrap goal. The actual techniques you choose make little difference as long as they are in good taste and the people can easily understand them. People continually need reassurance. Goal displaying provides it, and also solidifies their commitment. They cannot ignore visual measurement.

How do you recognise achievement?

"The magic words," we tell our children, "are 'please' and 'thank you'." When it comes to establishing and accomplishing industrial goals the magic word is " you," in both its plural and singular context. If it is true, as has been said, that the sweetest sound to any man is his name, then the next sweetest must be: you did it!

People work for appreciation and recognition. They yearn for it, they hope for it. They can also tell when it is offered as pure flattery or done for some nefarious purpose. Any recognition given must be on a personal basis, and it must be genuine.

Recognition can take many forms. The easiest way to determine what is proper and effective is to ask yourself what kind of recognition means something to you.

There once was a production supervisor who would wager a cigar that his people couldn't accomplish such and such a task. When they did the job he would pay off with a flourish. No one ever smoked the cigars they received they wore them, as a sign of achievement. Since the supervisor knows his people better than anyone else, he must determine what they will respond to.

Here are a few suggestions.
bulletA handshake and a "pat on the back," in front of his fellows, is effective every time.
bulletRecognition for the best job of the month - perhaps selected by a special goals committee. (Don't get involved in a weekly award, Fridays roll around awfully quick.)
bulletA departmental honour roll, with the names of achievers inscribed forever.

Above all, recognition should never be negative. A "Goat of the Month" award will drive all intelligent and ambitious people to the only possible solution: do nothing.

The recognition devices and techniques should be as high as the supervisor's personal standards. You will soon find out if yours are high enough.

What do you receive from goal setting?

Outside of the accomplishment of specific goals you can use goal setting to establish a habit of success. The whole business of quality Control revolves around improvement. Goal setting can be your tool for continual improvement. Tomorrow is here.

© 1990 Philip B Crosby.
Note: This book is now out of print.