It's Almost Mid-Year...How Are You Doing?
By: Dave Baney
The end of June is near, are you on target to have a good year? If not, you have really two choicesâ€¦change the pace of your current activities or change your goal.
As an exampleâ€¦if at mid-year youâ€™re at 40% achievement of the goals for the year then you really need to go 50% faster the second half of the year than you did in the first half of the year to make plan.
Achieving only 40% of your goal in the first half means you must achieve 60% in the second halfâ€¦that is truly 50% faster. Is that realistic? And what has to be done for you to be able to achieve that dramatic increase in the pace of your business?
If in fact it is not realistic then maybe you need to consider changing your goals to ones that are more realistic. Remember bonus and performance shouldnâ€™t be necessarily altered. Lowering the goals does not automatically mean you have to give a larger bonus or a better raise. (Iâ€™ll come back to that in a moment).
One of the reasons to change the goals is so that your team doesnâ€™t become sloppy. Because they are pursuing real goals, not goals they know they cannot make. And another reason is that out of reach goals create apathyâ€¦ lack of concern and may lead to even more mistakes and bad habits.
The intent is to build a feeling of success, of achievement, of accomplishment, instead of having a demoralized group of employees who basically sayâ€¦ who cares and gets used to failing.
Making sure you have the right people in the right seats doing the right things the right way is critically important and itâ€™s time for you to sit down and have an honest review of your goals for the year and if you can pick up the pace or need to change the goals. Next sit down with the individuals who are the key performers in your company and have an honest review with them about their performance to date and your expectations for the balance of the year or â€¦
There arenâ€™t enough â€œorsâ€ in the worldâ€¦I was sitting recently with a CEO who said wellâ€¦â€My people are just going to have to do a better jobâ€. And I asked himâ€¦â€ORâ€ and he had no response. So while I know you want your people to do a better job, are there consequences? If there are no consequences then what you have is an empty threat. So explain very clearly the consequences of lack of performance.
Now letâ€™s go back to that bonus and performance thing. If in fact youâ€™re going to change the goals for the second half of the year, consider thisâ€¦If we failed in the first half to achieve any of our goal, we get a zero for the first half of the year, if we hit the goals for the second half of the year we get a 100% for the second half of the year. So for the full year that would be 0% + 100% or an average of 50% achievement.
So even though you changed the goals that doesnâ€™t mean you reward people by giving them a full bonus for achieving less than was expected. Prorate the bonus based on the performance for the first half of the year, and prorate the bonus based on the performance for the second half of the year and give people the combined, prorated bonus.
And thatâ€™s a way you can keep your people motivated, interested but not reward them for goals not achieved.
Do you have any â€œORSâ€ in your company?
Dave Baney is the CEO of 55 Questions, LLC, a certified Gazelles coaching firm. Hebrings over 30 years of Fortune 500 management and leadership experience to growing businesses nationwide through 55 Questions’ tools and processes. Known for crisp execution, marketing insight and thoughtful direction, he is now a trusted advisor for CEOs. Contact Dave directly: email@example.com.