We discussed these criteria for business goals and outcomes in The Business
Plan.
Û The outcomes must be very clearly defined
Û There must be no grey area or room for misunderstanding as to what is
required
Û The outcomes must also be achievable
Û The outcomes must be time phased. It must be clear what period is
being measured
Û The outcomes must be measurable in a clearly understood way
Û The method of measurement should be defined
Consider these four other points:
- All parties should understand what sources of information would be used to
retrieve the data for PPO measurement. - PPO must always be timed so everyone understands the period of
performance to be measured and when the deadline or cut-off period will
occur. - PPO are often point weighted to reflect the difference in emphasis that the
business puts upon various PPO categories.
For example
If a goal were set to increase sales by a
certain percentage or amount,
without defining whether sales meant
gross sales or net sales, it would
lead to controversy at the time of
assessment.