{"id":92402,"date":"2014-02-18T00:21:50","date_gmt":"2014-02-18T08:21:50","guid":{"rendered":"http:\/\/feedproxy.google.com\/~r\/TheSquawkPoint\/~3\/TZmeI7eUZ4I\/"},"modified":"2014-02-18T00:21:39","modified_gmt":"2014-02-18T08:21:39","slug":"target-setting-cause-and-effect","status":"publish","type":"post","link":"https:\/\/customerthink.com\/target-setting-cause-and-effect\/","title":{"rendered":"Target Setting, Cause and Effect"},"content":{"rendered":"\r\n

During the 1990\u2019s and early 2000\u2019s the UK government<\/strong> relied heavily on target setting<\/a> as a way to manage the public sector. \u00a0We had:<\/span><\/p>\r\n

No doubt we had targets for the target setters as well. \u00a0UK PLC was run by setting targets and expecting the managers to hit them.<\/p>\r\n

Did it work?<\/h4>\r\n

Here is a\u00a0very interesting paper<\/a>\u00a0that answers that very question. \u00a0Unfortunately it is the sort of paper that takes 30 minutes, your full concentration and a strong cup of coffee to read. \u00a0If you don\u2019t have those let me give you a taste\u2026<\/p>\r\n

There were 3 clear effects from all this target setting:<\/h4>\r\n
1. Ratchet effects<\/h5>\r\n

The ratchet effect happens as target setters progressively make the target harder<\/strong> and harder to hit, gradually ratcheting up performance year on year.<\/p>\r\n

The problem with ratcheting up the target is that if you make 101% of the target one year you will be asked for 105% the next, so nobody in his right mind would knock the target over<\/strong> and hit 150%, after all what chance would you stand the following year?<\/p>\r\n

You might think this is cynical, so let me ask you\u2026 \u00a0Did you make sure your spent all of your budget last December just so it wasn\u2019t taken away from you this year?<\/p>\r\n

Yes? \u00a0I did, and that is what causes the ratchet effect.<\/p>\r\n

2.\u00a0Threshold effects<\/h5>\r\n

The threshold effect happens when the target creates a step in performance.<\/p>\r\n

Instead of a spread of results performance clusters around the target<\/strong>. \u00a0Those who are below the target strive to hit it (by about 101%) where as those who are performing far above the target take their foot off the gas and coast down to it<\/strong>. \u00a0Why invest your resources in something you won\u2019t get thanked for?<\/p>\r\n

Once agin you can challenge me with cynicism so let me ask another question\u2026 \u00a0If you were a teacher with a target to get your children through an exam where would you focus your efforts?<\/p>\r\n