Goal-Driven Performance Management and SMART · PDF file · 2012-11-22Table of...

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Goal-Driven Performance Management and SMART Goals

Transcript of Goal-Driven Performance Management and SMART · PDF file · 2012-11-22Table of...

Page 1: Goal-Driven Performance Management and SMART · PDF file · 2012-11-22Table of Contents Disempowering ... (2008-2012) 3 TalentAlign IT GDPM and SMART Goal Setting (2) Goal-driven

Goal-Driven Performance

Management and SMART Goals

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Table of Contents

Disempowering Practices ................................................................................................................................................. 3

Empowering Employees to Achieve Goals .......................................................................................................................... 3

How to Write SMART Objectives ........................................................................................................................................ 4

Types of SMART Objectives ............................................................................................................................................. 4

Format of SMART objectives ........................................................................................................................................... 6

Objective Setting Process .................................................................................................................................................... 6

Company Objective Setting Worksheet .............................................................................................................................. 7

Next Step ....................................................................................................................................................................... 10

Department Objective Setting Worksheet ........................................................................................................................ 11

Next Step ....................................................................................................................................................................... 15

Role Objective Setting Worksheet .................................................................................................................................... 16

Appendix A: Action Verbs ................................................................................................................................................. 21

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Goal-driven Performance Management

Goal-driven performance management (GDPM) lends itself ideally as a tool to further an organisation's efforts to

create and sustain an empowered workforce. The primary purpose of GDPM, at the organisational level, is to

orchestrate the talent and energy within an enterprise toward achievement of the organisation's strategic goals. At

the individual level, its purpose is to enable managers and their direct reports to collaborate in setting meaningful

goals, track progress against those goals over time, and evaluate performance. Because GDPM provides a common

structure within which to align and manage the work efforts of everyone within the organisation, it lends itself well to

the challenge of promoting and sustaining management practices that empower the workforce.

Disempowering Practices

Below is a list of “disempowering” practices. How many apply to your organisation?

Assign goals to your employees without mutually agreeing on the goals and their measures

Minimise the significance of goal alignment (or ignore it altogether) so that your employees do not have

a sense of the larger context into which their own efforts fit

Set your employees' goals for whatever is most measurable rather than what is most important

"Over determine" goals by tightly prescribing how your employees are to achieve the expected results in

addition to defining what results are expected

Have very few, if any, interactions with your employees during the year to discuss how things are going

Don't let your employees have access to information about other people's goals -- especially to

information about your own goals.

Discourage your employees from admitting that they are having difficulty with a goal or from asking for

help or coaching assistance

Require periodic status updates but use them only as documentation of performance, ultimately to be

used in a performance evaluation

Empowering Employees to Achieve Goals

What is empowerment and what are the conditions that spawn it? People are empowered when they have the

freedom to act in ways that will achieve important outcomes and when they believe that they are responsible for

results that are meaningful. An organisation that fosters such a work environment will facilitate a sense of

empowerment among the people who work within it.

What are the conditions that can result in a sense of empowerment? People feel empowered when:

they understand how their own work contributes to the larger purposes of the organisation,

they have goals to be achieved and some degree of freedom in choosing how best to achieve them,

they have ways of determining how well they are performing and clear standards against which their achievements

are evaluated, and

they are held accountable for achieving the goals they have agreed to take on.

Empowerment takes hold when there is a minimum of bureaucracy and a great deal of interest in discovering better

ways of doing things, and when managers are supportive and actively coach their employees. At the heart of most

empowering environments is the idea that decisions ought to be made as far from the top of the organisation and as

close to the customer as possible.

Under these conditions, most employees genuinely feel empowered. They are encouraged to seize the initiative

rather than waiting to be told what to do. They make decisions and act with confidence, knowing that they have

made their decisions in accord with corporate values and high-level goals. Employees feel a sense of responsibility

and ownership and are committed to the organisation's success (Employee Engagement). They act independently and

even begin to impose their own standards on their job performance, which are often higher than the standards

suggested by their managers or by the company.

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As a result of having a critical mass of empowered employees, a company can be more agile in navigating its external

environment. It can count on the teamwork of its employees, on people working together in pursuit of a commonly

shared higher purpose. Because employees are not just doing what they are told to do but rather are striving to

achieve clearly understood goals and imposing on themselves their own rigorous standards, the quality of the

organisation's products and services is higher. And, not least in importance, the company's pool of ideas encompasses

not just the top management group but all employees.

So, given the positive results to be gained by an organisation from having an empowered workforce, it's not surprising

that companies aspire to achieve it. Many of the conditions that foster empowerment are the products of

management practices. Which of the following “management practices” can be applied to your organisation in

fostering empowerment in your workforce?

Set goals collaboratively with your employees, getting their input on what they should be working on and

gaining their commitment to the goals.

Emphasise how your employees' goals align to your goals and to higher-level goals so that they have a clear

sense of the broader context in which their efforts fit.

Work with your employees to set goals that produce important results rather than goals that are merely

convenient because they are easily measured.

Set goals that focus on the results expected rather than over specifying the means by which your

employees must achieve the goals.

Require your employees to access information about others' goals so that they can understand the

interdependencies of their own goals with others' goals.

Encourage and reward your employees for using the system to signal the need for help or coaching

assistance when a goal is in jeopardy.

Require periodic updates with the system, using the information to trigger discussion of progress as well as

provide documentation to ensure accurate and fair performance evaluations.

Act on information supplied by your employees through the system to increase the company's agility.

How to Write SMART Objectives

Management by Objectives is credited to Peter Drucker in his 1954 book “the practice of management”. From this

history and approach the use of the acronym SMART has grown. Increasingly, many organisations are using the

SMART acronym within objective setting and performance appraisal environments.

Types of SMART Objectives

SMART is an acronym to help in the writing of objectives.

S = Specific Specific means that the objective is concrete, detailed, focused and well defined.

Specific means that it’s results and action-orientated. Objective must be

straightforward and emphasize action and the required outcome. Objectives need to

be straightforward and to communicate what you would like to see happen. To help

set specific objectives it helps to ask:

WHAT am I going to do?

WHY is this important for me to do?

WHO is going to do what? Who else need to be involved?

WHEN do I want this to be completed?

HOW am I going to do this?

Diagnostic Questions

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What exactly are we going to do, with or for whom?

What strategies will be used?

Is the objective well understood?

Is the objective described with action verbs?

Is it clear who is involved?

Is it clear where this will happen?

Is it clear what needs to happen?

Is the outcome clear?

Will this objective lead to the desired results?

M = Measurable If the objective is measurable, it means that the measurement source is identified

and we are able to track the actions as we progress towards the objective.

Measurement is the standard used for comparison. For example, what financial

independence means to me may be totally different compared to what is means for

you. As it’s so often said if you can’t measure it, you can’t manage it! It’s

important to have measures that will encourage and motivate you on the way as you

see the change occurring, this may require interim measures. Measurements go

along way to help us to know when we have achieved our objective.

Diagnostic Questions

How will I know that the change has occurred?

Can these measurements be obtained?

A = Achievable Objectives need to be achievable, if the objective is too far in the future, you’ll find it

difficult to keep motivated and to strive to attain it. Objectives, unlike your

aspirations and visions, need to be achievable to keep you motivated. I do feel that

objectives need to stretch you, but not so far that you become frustrated and lose

motivation.

Diagnostic Questions

Can we get it done in the proposed timeframe?

Do I understand the limitations and constraints?

Can we do this with the resources we have?

Has anyone else done this successfully?

Is this possible?

R = Realistic Objectives that are achievable may not be realistic….. however, realistic does not

mean easy. Realistic means that you have the resources to get it done. The

achievement of an objective requires resources, such as, skills, money, equipment,

etc. to the task required to achieve the objective. Whilst keeping objectives realistic,

ensure that they stretch you. Most objectives are achievable but, may require a

change in your priorities to make them happen.

Diagnostic Questions

Do you have the resources available to achieve this objective?

Do I need to revisit priorities in my life to make this happen?

Is it possible to achieve this objective?

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T = Time-bound Time-bound means setting a deadline for the achievement of the objective.

Deadlines need to be both achievable and realistic. If you don’t set a time you will

reduce the motivation and urgency required to execute the tasks. Timeframes create

the necessary urgency and prompts action.

Diagnostic Questions

When will this objective be accomplished?

Is there a stated deadline?

There are a variety of types of objectives that can be written, all can be done in the SMART format.

• Process objectives

o tell what you are doing and how you will do it; describes participants, interactions and activities

• Impact objectives

o tell how you will change attitudes, knowledge or behavior (short term); describe the degree to which

you expect this change

• Outcome objectives

o tell what the long term implications of your program/ activity will be; describes longer term impact

on your target audience

• Personal objectives

o personal development is an ideal application for SMART objectives. Often we see SMART objectives

written for project management or business and performance management, however as individuals

in our personal development plans, SMART objectives are also a valuable formula.

Format of SMART objectives

A SMART objective has 5 parts:

Verb Objectives require strong “Action Verbs”. Action verbs are observable and better communicate the

intent of what is to be attempted, like conduct, develop, build, plan, execute, plan, write, conduct,

produce, apply, revise, achieve, investigate, develop, etc. E.g. “Grow “

Subject This is the WHAT of the SMART objective. E.g. “Profit”

Measure What is the measure that is to be achieved? E.g. “By 20%”

Time The timeframe in which the objective is to be achieved. E.g. “by End Q3” (end of the third quarter)

Value The parameters in which the objective is to be achieved. E.g. “within the current expenditure

budget”.

Avoid generalities in objective statements. For instance, the following “verbs” should be avoided:

� Know

� Understand

� Enjoy

� Believe

A list of “Action Verbs” is contained in Appendix A.

Objective Setting Process

The objective setting process starts with the “goals” of the organisation.

A goal can be defined as "The purpose toward which an endeavor is directed". In personal and organisational

development terms, the goal is the main single aim of the entity.

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Objectives are the elements which, together, achieve the goal.

An organisation can have more than one goal, but the number of goals should be limited to not more than 3.

A “Goal” can have one or more “Objectives”, but the number of Objectives should also be limited to ensure that they

are manageable and achievable.

Company Objective Setting Worksheet

Goal:

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

Financial Perspective Objectives

Objective 1: Verb

What

Measure

Timeframe

Qualification

Departments

Impacted

Objective 2: Verb

What

Measure

Timeframe

Qualification

Departments

Impacted

Objective 3: Verb

What

Measure

Timeframe

Qualification

Departments

Impacted

Customer Perspective Objectives

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Objective 1: Verb

What

Measure

Timeframe

Qualification

Departments

Impacted

Objective 2: Verb

What

Measure

Timeframe

Qualification

Departments

Impacted

Objective 3: Verb

What

Measure

Timeframe

Qualification

Departments

Impacted

Process Perspective Objectives

Objective 1: Verb

What

Measure

Timeframe

Qualification

Departments

Impacted

Objective 2: Verb

What

Measure

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Timeframe

Qualification

Departments

Impacted

Objective 3: Verb

What

Measure

Timeframe

Qualification

Departments

Impacted

People Perspective Objectives

Objective 1: Verb

What

Measure

Timeframe

Qualification

Departments

Impacted

Objective 2: Verb

What

Measure

Timeframe

Qualification

Departments

Impacted

Objective 3: Verb

What

Measure

Timeframe

Qualification

Departments

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Impacted

Objectives Approval:

Authoriser Human Resources

Approved by (Name):

Designation (E.g. CEO):

Date:

Notes on Using the Company Objective Setting Worksheet

1. A Goal may have one or more objectives within just one perspective.

2. There may be just one objective for a specific perspective.

3. Departments Impacted means the departments within the organisation that will impact on the objective and

ultimately on the goal. This is for “cascading” purposes.

Next Step

The next step is for these goals and objectives to be cascaded to the Impacted Departments.

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Department Objective Setting Worksheet

Goal:

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

Financial Perspective Objectives

Objective 1: Verb

What

Measure

Timeframe

Qualification

Roles Impacted

Department

Actions:

1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Objective 2: Verb

What

Measure

Timeframe

Qualification

Roles Impacted

Department

Actions:

1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Objective 3: Verb

What

Measure

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Timeframe

Qualification

Roles Impacted

Department

Actions:

1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Customer Perspective Objectives

Objective 1: Verb

What

Measure

Timeframe

Qualification

Roles Impacted

Department

Actions:

1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Objective 2: Verb

What

Measure

Timeframe

Qualification

Roles Impacted

Department

Actions:

1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Objective 3: Verb

What

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Measure

Timeframe

Qualification

Roles Impacted

Department

Actions:

1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Process Perspective Objectives

Objective 1: Verb

What

Measure

Timeframe

Qualification

Roles Impacted

Department

Actions:

1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Objective 2: Verb

What

Measure

Timeframe

Qualification

Roles Impacted

Department

Actions:

1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Objective 3: Verb

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What

Measure

Timeframe

Qualification

Roles Impacted

Department

Actions:

1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

People Perspective Objectives

Objective 1: Verb

What

Measure

Timeframe

Qualification

Roles Impacted

Department

Actions:

1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Objective 2: Verb

What

Measure

Timeframe

Qualification

Roles Impacted

Department

Actions:

1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

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Objective 3: Verb

What

Measure

Timeframe

Qualification

Roles Impacted

Department

Actions:

1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Objectives Approval:

Department Head Human Resources

Approved by (Name):

Designation:

Date:

Notes on Using the Department Objective Setting Worksheet

1. The Department Goals should be in alignment with the Company goals.

2. There may be just one objective for a specific perspective.

3. Roles Impacted means the roles within the department that will impact on the objective and ultimately on the

goal. This is for “cascading” purposes.

4. The Department Actions are the actions that will be taken at Department level to ensure achievement of the

objectives.

Next Step

The next step is for these goals and objectives to be cascaded to the Impacted Roles and individuals.

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Role Objective Setting Worksheet

Goal:

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

Financial Perspective Objectives

Objective 1: Verb

What

Measure

Timeframe

Qualification

Role KPIs: 1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Objective 2: Verb

What

Measure

Timeframe

Qualification

Role KPIs: 1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Objective 3: Verb

What

Measure

Timeframe

Qualification

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Role KPIs: 1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Customer Perspective Objectives

Objective 1: Verb

What

Measure

Timeframe

Qualification

Role KPIs: 1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Objective 2: Verb

What

Measure

Timeframe

Qualification

Role KPIs: 1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Objective 3: Verb

What

Measure

Timeframe

Qualification

Role KPIs: 1. ________________________________________________________

2. ________________________________________________________

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3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Process Perspective Objectives

Objective 1: Verb

What

Measure

Timeframe

Qualification

Role KPIs: 1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Objective 2: Verb

What

Measure

Timeframe

Qualification

Role KPIs: 1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Objective 3: Verb

What

Measure

Timeframe

Qualification

Role KPIs: 1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

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5. ________________________________________________________

People Perspective Objectives

Objective 1: Verb

What

Measure

Timeframe

Qualification

Role KPIs: 1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Objective 2: Verb

What

Measure

Timeframe

Qualification

Role KPIs: 1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Objective 3: Verb

What

Measure

Timeframe

Qualification

Role KPIs: 1. ________________________________________________________

2. ________________________________________________________

3. ________________________________________________________

4. ________________________________________________________

5. ________________________________________________________

Objectives Approval:

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Performer Human Resources

Approved by (Name):

Designation (Role):

Date:

Notes on Using the Role Objective Setting Worksheet

1. The Role Goals should be in alignment with the Department Goals which should, in turn, be in alignment with the

Company goals.

2. There may be just one objective for a specific perspective.

3. Role KPIs is the translation of the objectives into specific KPIs for the Performers in the Role.

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Appendix A: Action Verbs

You can use these action verbs when writing your SMART objectives.

• achieve

• acquire

• act

• activate

• adapt

• administer

• advise

• analyze

• arrange

• assemble

• assess

• assist

• audit

• budget

• build

• calculate

• centralise

• clarify

• classify

• coach

• collaborate

• collect

• communicate

• compile

• complete

• compose

• compute

• conceptualise

• conduct

• connect

• consolidate

• construct

• consult

• coordinate

• counsel

• create

• decide

• decrease

• define

• deliver

• demonstrate

• design

• determine

• develop

• diagnose

• direct

• discover

• display

• distribute

• document

• edit

• eliminate

• ensure

• establish

• estimate

• evaluate

• expand

• expedite

• experience

• experiment

• facilitate

• finalise

• finance

• forecast

• formulate

• generate

• guide

• handle

• help

• identify

• illustrate

• implement

• improve

• increase

• initiate

• inspect

• install

• instruct

• integrate

• interpret

• introduce

• invent

• investigate

• judge

• launch

• learn

• lead

• make

• maintain

• manage

• market

• monitor

• motivate

• navigate

• negotiate

• obtain

• open

• operate

• organise

• originate

• participate

• perform

• plan

• prepare

• present

• prevent

• process

• procure

• produce

• program

• propose

• provide

• publicise

• publish

• purchase

• quantify

• reconcile

• reconstruct

• record

• recruit

• redesign

• reduce

• reorganise

• report

• represent

• research

• resolve

• restore

• restructure

• retrieve

• review

• revise

• schedule

• secure

• select

• solve

• staff

• standardise

• streamline

• structure

• supervise

• supply

• survey

• systematise

• teach

• test

• train

• translate

• unify

• unite

• update

• write

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