Setting company goals is something that every CEO does, but do your employees actually care? Goal setting is something that every organization needs to revisit and make sure that employees are aligned in achieving the corporate goals.

1. Get To High Performance
BEST PRACTICES FOR ESTABLISHING GOALS FOR
YOUR MANAGEMENT TEAM IN THE NEW YEAR

2. About the Webinar Speaker
o Chairman,
Aus-n
Technology
Council
and
Co-­‐founder
and
Managing
Partner
of
private
equity
firm
Lone
Rock
Technology
Group
o Developed
and
implemented
an
effec-ve
goals
management
system
as
the
former
CEO
of
two
soHware
companies
o As
CEO,
led
both
of
those
soHware
companies
to
successful
nine-­‐figure
acquisi-ons
by
two
Fortune
500
companies
o In
2010,
co-­‐founded
Aus-n-­‐based
Cache
IQ,
a
storage
soHware
company.
NetApp
acquired
it
in
November
2012.
o Co-­‐founded
network
management
soHware
company
NetQoS
in
1999
and
led
it
to
become
one
of
the
fastest
growing
technology
companies
in
the
U.S.,
with
31
consecu-ve
quarters
of
double-­‐digit
revenue
growth.
CA
Technologies
acquired
the
company
in
2009,
genera-ng
more
than
10x
return
on
capital
to
our
private
equity
investors.
©
Khorus
2014
2
Joel
Trammell
CEO,
Khorus

3. Lack
of
Influence
on
the
Organiza4on
CEO Challenges
©
Khorus
2014
3
1
Lack
of
Timely
Informa4on
to
Address
Problems
2 Lack
of
Engaged
Employees
3

4. Why Quarterly Company Goals?
©
Khorus
2014
4
Monthly
Goals
Short
-meline
to
plan
and
execute
a
cohesive
strategy
Quarterly
Goals
Drive
Company
Priori-es
Adapt
to
Changing
Business
Condi-ons
Engage
Employees
Half
Yearly/Annual
Goals
Not
Fast
enough
to
respond
to
markets
driven
by
Lose
sense
of
focus
and
urgency
with
too
much
slack
built
in
2-­‐5
Year
Goals
Excellent
for
company
vision,
poor
for
transla-ng
Strategy
to
opera-ons
and
execu-on

5. Execution Happens When…
©
Khorus
2014
5
Employees
understand
current
strategy
1
Employees
develop
goals
linked
to
strategy
2
Measurements
are
iden4fied
3
Employees
act
with
purpose
4
Results
are
reviewed
weekly
5

6. Do Employees Understand Current Strategy?
“…only
7%
of
employees
today
fully
understand
their
company
business
strategies
and
what
is
expected
of
them
in
order
to
help
achieve
company
goals.”
-­‐Kaplan
and
Norton
©
Khorus
2014
6
DO
EMPLOYEES
UNDERSTAND
YOUR
CURRENT
STRATEGY?
WHY
DON’T
EMPLOYEES
GET
IT?
No
direct
-e
between
corporate
goals
and
day
to
day
ac-vi-es
“When
CEO’s
talk
strategy,
70%
of
the
company
does
not
get
it.”
-­‐
Harvard
Business
Review
Corporate
Goals
Employee
Goals

7. Strategy Executed Through Goals
Grow
product
revenue
by
40%
in
1Q
2014
Develop
&
execute
new
campaigns
to
generate
qualified
leads
&
grow
pipeline
by
$10
million
Close
$2
M
in
new
customer
bookings
in
1Q
2014

8. Sample
Corporate
Goal
Measures
● Launched?
Y/N?
● Quality?
● Measure
3
● Priority
Goals
–
new
ini-a-ves
that
specify
the
priori-es
of
the
CEO.
Any
one
department
should
contribute
to
at
most
two
priority
goals.
◦ “Launch
Product
XYZ”
◦ “Reduce
Product
Defects
by
27%”
● Sustaining
Goals
–
normal
opera-ons
of
the
company
◦ “Con-nuous
Improvement
in
Opera-onal
Excellence”
◦ “Deliver
World-­‐Class
Customer
Sa-sfac-on”
©
Khorus
2014
8
Setting Corporate Goals
Launch
Product
XYZ

9. ● Department
goals
support
the
Corporate
Goals
either
directly
or
indirectly
through
the
hierarchy.
◦ “Develop
Marke-ng
Plan
to
Support
Product
XYZ
Launch”
● Departments
may
also
create
goals
that
don’t
link
to
the
Corporate
Goals
◦ “Increase
Marke-ng
Mee-ngs
Set
by
25%”
● Any
one
department
should
only
support
a
maximum
of
two
priority
goals
Sample
Department
Goal
Measures
● #
of
Marke-ng
Qualified
Leads
● Measure
2
● Measure
3
©
Khorus
2014
9
Setting Department Goals
Develop
and
Execute
Marke-ng
Plan
to
Support
Product
XYZ
Launch

10. ● Individual
contributors
create
individual
goals
that
link
directly
to
department
or
corporate
goals
● Individual
goals
come
out
of
a
collabora-ve
process
between
the
individual
and
their
manager
Sample
Individual
Goal
Measures
● Quality?
● #
of
Downloads
● #
of
Conversions
©
Khorus
2014
10
Setting Individual Goals
Publish
Whitepaper
to
support
Product
XYZ
launch

11. Determine
exactly
when
the
goal
will
be
completed
Establish
goals
clearly
-ed
to
higher
level
goals
Make
sure
the
goal
can
be
accomplished
Establish
clear
objec-ve
measures
to
define
the
goal
Make
sure
the
goal
is
clear
Follow the SMART Goal Framework
©
Khorus
2014
11

12. ● Predic-ve
Measures
◦
Metrics
that
measure
the
ac-vi-es
that
drive
outcome
measures.
A
predic-ve
measure
for
revenue
in
the
quarter
might
be
number
of
qualified
mee-ngs
held.
◦ Key
role
of
management
is
to
iden-fy
the
predic-ve
measures
for
every
individual
in
the
company
and
facilitate
that
ac-vity.
● Outcome
Measures
◦ Metrics
that
focus
on
the
results
at
the
end
of
a
-me
period,
aka
historical
performance.
Example,
revenue
in
the
quarter.
©
Khorus
2014
12
Choosing the Proper Measures
Website
Visitors
Sales
Mee-ngs/
Demos
Closed
Bookings
Free
Trials
Predic-ve
Measures
Outcome
Measure

13. Execution Happens When…
©
Khorus
2014
13
Employees
understand
current
strategy
1
Employees
develop
goals
linked
to
strategy
2
Measurements
are
iden4fied
3
Employees
act
with
purpose
4
Results
are
reviewed
weekly
5

14. ● Feedback
needs
to
be
bi-­‐direc-onal.
Individual
contributor
to
management.
Management
to
individual
contributor.
● Individual
contributors
must
be
able
to
communicate
their
issues
without
interpreta-on
to
the
top
of
the
organiza-on.
©
Khorus
2014
14
Results are Reviewed Weekly

15. Complete the Process
Final
status
for
all
goals
is
recorded.
CEO
summarizes
corporate
goal
results
to
the
en-re
organiza-on.
©
Khorus
2014
15

16. ● Corporate
Goal
1:
Grow
revenue
by
20%
Y/Y
in
Q2
● CEO
Comment:
◦ Revenue
growth
for
Q2
came
in
at
~26%.
I
want
to
thank
everyone
involved
for
delivering
another
excellent
performance.
◦ I
want
to
specifically
note
the
efforts
of
our
western
region
in
signing
four
new
Fortune
500
customers.
◦ Our
new
XYZ
product
contributed
5
million
in
revenue
in
only
its
2nd
quarter
on
the
market.
It
is
clear
we
are
gaining
market
share
across
all
regions.
◦ Let’s
con-nue
this
momentum
into
Q3.
©
Khorus
2014
16
CEO Goal Review
● Elements
of
CEO
Commentary:
◦ Candid
performance
assessment
◦ Gra-tude
◦ Commenda-on
◦ Mo-va-on

17. 10
Weeks
Goal Setting and Execution Timeline
©
Khorus
2014
17
5
4
6
1
2
3
12
11
10
7
8
9
Goals
Cascaded
and
Aligned
QUARTER
1
1-­‐2
Weeks
Upda4ng
Goals
throughout
the
Quarter
1
Week
Next
Quarter
goals
discussions
begin
2
Weeks
Next
Quarter
goals
discussions
begin
14
13
QUARTER
2
16
15
2
Weeks
Complete
and
Submit
Results

18. þ Make
the
goals
posi-ve
þ Include
everyone
þ Build
a
rhythm
þ Insure
closure
þ Train
your
managers
þ Encourage
input
from
the
botom
þ Keep
it
simple
ý Unrealis-c
targets
ý Try
to
capture
every
ac-vity
©
Khorus
2014
18
Do’s and Don’ts

19. ● 31
Consecu-ve
Quarters
of
Double
Digit
Y/Y
Growth
● 10X
return
for
investors
● <3%
Unwanted
Employee
Turnover
©
Khorus
2014
19
Case Studies
Was acquired by In 2009

20. Conclusion
©
Khorus
2014
20
A
properly
executed
goal
system
will
drive
the
following
benefits:
Allow
the
leader
to
drive
the
organiza4on
instead
of
each
group
ac4ng
individually
1
Last
minute
surprises
will
be
drama4cally
reduced
2
Employees
will
be
much
more
engaged
as
they
understand
how
they
contribute
directly
to
the
goals
of
the
company
3

21. Contact the Speaker
● Joel
Trammell
*
:
joel@khorus.com
!
:
htp://khorus.com
:
@TheAmericanCEO
:
htp://theamericanceo.com
:
htp://www.linkedin.com/in/joeltrammell
:
htp://www.forbes.com/sites/joeltrammell/
Joel
Trammell