2.7. SETTING ORGANIZATIONAL KEY REQUIREMENTS

Plans, budgets, goals and targets are key requirements set by the leadership for the organization. If not done properly, the behavior driven by these key requirements may not be anywhere close to what the leadership desires, or expects. Key requirements are used to assess employee performance, which is linked to promotions, pay increases, bonuses and many other things that people care about a great deal. People will try hard to meet the key requirements, but if the process they must work with makes it impossible to do so they will often cheat (see sidebar, Gaming the System).

The most common flaw in goal setting, in my opinion, is the tendency to set goals that are merely wishes and hopes. The leadership ...

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