This Week in HR, week one of a new year, we turn our minds to goal setting: Goal setting in the context of a new year, new social and political dynamics, new perspectives on what we want for ourselves and others around us—new everything. I started thinking about what shaped my perspective on goals and goal setting. I remembered an exchange with a friend of mine who owned a startup seismic analysis company in Houston that serviced O&G exploration companies. He complained to me that he was tired of his employees failing to meet their revenue targets – particularly the sales guys, as well as a few of the engineers. He told me that he and his business partner had laid it all out on the line, “We made it clear to employees - what we expected from each of them and the consequences for continued failure.”
They were baffled by what happened. Employee morale, which was already in the dumps, got worse, some quit, and the owners were left with an even more serious problem, they were unable to meet what was left of the demand for their services. One of the former employees badmouthed them in what was a small sector within the energy space. The company's costs increased as they were forced to increase compensation for two key employees. The problem was snowballing.
I wasn’t consulting then, but I had begun managing people and understood that managing / motivating people well is not an automatic gift native to leaders. Motivation doesn’t happen magically, sometimes it isn’t intrinsic to every employee’s personality, AND it is deeply interrelated with cultural drivers; so managing / motivating employees isn’t completely within the purview of managers anyway. Leading well is necessarily more cerebral and concerted than telling people what to do.
My friend continued disconsolately prognosticating about failed tactics to turn the company around. I couldn't take it anymore. “Why should they try hard to meet your goal? Why should they care?” I interjected. His reflexive answer was, “Because I’m paying them!” And I asked him if they had considered why they were in business in the first place—if they had ever articulated a good reason for doing business. "We want to make money." End Stop. Duh.
What I am really trying to get at is this: Expecting your employees to meet goals and produce results is natural and unambiguous, just like being in business to make money is obvious and OK. What employees will always need from leaders, though, besides clear direction, is a bigger sense of meaning and purpose for their work – the WHY. The question, Why should anyone care about what they do? is not rhetorical or cynical, it’s THE fundamental concern for companies that want to increase retention and engagement. Companies that have no other mission than making money will find their employee relations toolbox empty every time. Coming up with ancillary raisons d'être gives you something to work with. Having a vision for where you want to take your company will give you material to inspire your employees with the same passion you have.
Setting goals for a new year in all or strategic business areas for the business and employees is the most exciting and important thing a business leader does. It is the opportunity to move forward into a new year with purpose and clear direction.