Several terms refer to desired outcomes and measuring performance and success. Some of these
include strategic plans, operational plans, business objectives, goals, tasks, actions, activities, key
result areas, key performance indicators (KPIs), and several others. Understanding how these terms
differ and relate to each other can be confusing.
The reality is that many of the above terms can be used interchangeably (they refer to the same thing!).
Depending on where you work or what you read, these terms can be used in a variety of different ways.
This section aims to clarify what these terms mean and how they are used and interrelate.
Goal, Objective, Aim, Target (GOAT)
These terms are interchangeable and generally refer to a desired outcome for a business/organisation
or individual. A GOAT can be set at a strategic level or for desired individual, personal, or work
outcomes.
GOAT can be broken down into smaller steps (see TAA) to make them more manageable.
Using GOAT effectively
WOOP (Wish, Outcome, Obstacle, Plan) is a proven way of achieving desired outcomes. It is a tool that
helps us to develop a plan to identify and overcome obstacles that stand in the way of achieving the
outcome.
Gabriele Oettingen (http://www.woopmylife.org/) suggests identifying obstacles that may make
achieving your wish difficult while focusing and staying motivated by the outcomes that you gain once
your wish is achieved. Use the following four steps as a tool to help you achieve your desired outcome
(GOAT).
In business, the first GOATs are set at the strategic level.
To demonstrate the concept of WOOP, use a wish common among students everywhere!
Wish
Define your wish – what is your desired
outcome? When would you like to have
achieved this by? Your wish should be
challenging but achievable.
Example You want to complete your latest assignment by next Wednesday evening.
Outcome
Define the best part of achieving your wish. What is the best outcome you associate with
achieving your wish? What is the most important thing to you?
Wish Outcome Obstacle Plan
BSBWOR502 Lead and manage team effectiveness | June 18 v2.0
Jigsaw Training 12
Example You will be close to the end of your study.
Obstacles
This is a critical piece of this process. Obstacles exist and need to be identified from the outset.
What are the obstacles that stop you from achieving your desired outcomes? Be realistic!
Example When at home, you are tempted to watch television instead of studying!
Plan
Visualise and plan how you will overcome the obstacles that stand in the way of achieving your
GOATs!
Example
What can I do to achieve my wish? We know that the problem involves too much television
watching, so we need to plan to address this obstacle. Plan to limit television watched, or tell
yourself you can watch it after you have worked on your assignment for two hours.
The obstacle is reality. Dealing with it is essential. Your plan will be geared toward achieving your
desired outcome.
According to WOOPyourlife.com, we should now use ‘if’ and ‘then’.
So … if you know that the television distracts you, then you will stop watching it!
In summary, ‘if’ [insert obstacle], then ‘I will’ [insert behaviour to overcome]!
Important – Our example is personal and individual. In business, the application can be used to assist in
achieving wish and outcome levels and identifying obstacles. In other words, WISH would be achieving
strategic, operational, team, and individual GOATs.
There are many ways to use WOOP.
The first GOATs are made at a strategic level and set the plans or direction for the whole organisation.
Then, organisational GOATS inform the following direction:
KRAs! Key result areas represent critical result categories identified for departments within
organisations. These help managers and staff to understand what needs to be achieved and how
performance will be reported – what is important within these business areas! Examples of KRAs can
include the following:
TAA! Tasks, actions, and activities. These words are also interchangeable.
Remember we said GOATs can be broken down into smaller steps to make them more manageable?
TAAs are the pieces or smaller steps that contribute to achieving the desired outcomes (GOAT).
KPIs: Key performance indicators are used to measure progress and performance toward the
achievement of GOATs. KPIs can and should be established to measure all aspects of the organisation.
Department KRA Team’s TAA
KPIs for individual
actions
Human
resources
Sales
Customer
service
Productivity Income WHS
BSBWOR502 Lead and manage team effectiveness | June 18 v2.0
Jigsaw Training 13
They should be set and reviewed at regular intervals. Management should monitor these measures to
ensure individuals and teams are meeting required performance standards. If not, corrective action
should be taken.
KPIs are best written using the SMART method:
When the SMART method is used, a measurement is created to monitor what will happen, how it will
happen, when it will happen, who has responsibility, and how the outcome will be measured.
The purpose of a team is to achieve something concrete, a desired outcome.
At this stage, it is necessary to consult with the whole team. We need to meet with the team and ensure
there is a clear understanding of the following:
• Organisational GOATs.
• How operational GOATs relate to the operation of our team.
• Key result areas (KRAs) for our team.
• The need to generate ideas and ensure that the whole team has a clear understanding of the
team’s purpose and how it fits into the organisation.
Once this has been established, we would also define, as a group, the individual roles and
responsibilities, e.g., specific job descriptions.
Specific Measureable Achievable Relevant Time bound
BSBWOR502 Lead and manage team effectiveness | June 18 v2.0
Jigsaw Training 14
A team who does not have clear GOATs, good leadership, competencies, and willingness to work
together will find it difficult to achieve its outcomes.
How does each team member know their responsibilities or what is expected of them? These should be
defined via a job description.
Case study
We know The Right Foot Shoe Company wants to increase its market share at the strategic level. At the organisational
level, there needs to be an increase in the market share by 20% by the end of the next fiscal year, 15 more outlets, and
five large commercial contracts.
At the team level, a new product team has been put together to design a new shoe that looks like a young corporate
shoe but feels like a sports shoe.
Using WOOP to look at this situation, we could identify the new shoe as the wish. The best possible outcome will be
an increased market share. Obstacles now need to be identified; they exist, so we need to be realistic about them.
Paul, from production, who is heading up the team, has been working with his team on establishing their GOATs to fit
with those of the CEO and the organisation.
They have identified the procurement expert is too far away. He is really good at what he does, but the team needs to
see him and the samples. After a brainstorming session where Paul encouraged the team to think creatively about this
problem (obstacle), they realised the real problem is the lack of samples to use for prototypes.
What a relief! At least now the team can make a plan. They can arrange for samples to be shipped to them in greater
quantities than originally thought, and the procurement expert can be flown in just before the first version is completed
with any extra supplies required.
The strategic plan is to increase market share. The measure of this will obvious. How this happens will be up to plans at
the operational level.
The operational plan now focuses on how we will make this happen as an organisation. What needs to happen next?
Larger organisations will have an operational plan for each area for their business. The operational plan will identify the
key result areas (KRAs), which may include Finance, WHS, Human Resources, and Sales.
Next, we look at the detailed actions that must take place for the KRAs.
See the diagram below, which depicts the planning process for The Right Shoe Company.
BSBWOR502 Lead and manage team effectiveness | June 18 v2.0
Jigsaw Training 15
1.2.2 Goal setting
Dr Edwin Locke completed pioneering research on goal setting and motivation in the late 1960s. He
found that employees were motivated by clear goals and feedback. Locke developed the SMART
framework
In line with the process we have worked through above, we would recommend applying the concept of
SMART to the individual KPIs and apply WOOP to the larger GOATs. WOOP constitutes a change in
thinking from SMART, but both have their applications.
Clear KPIs are measurable and unambiguous. When a KPI is specific, with a definite time set for
completion, there is less chance of misunderstandings occurring around what behaviours will be
rewarded. When teams know what is expected, they are more likely to achieve a positive outcome. If it
is vague or expressed in general terms, it has limited motivational value and can be easily
misinterpreted. It is also important to set a time limit or a deadline so it does not become a never-ending
project!
Strategic plan
(Increase market share)
Operational Plan
Marketing Department
Objective #1
Establish a product
innovation team
KRA: Finance
TAA: Ensure that there is
sufficient budget for the
objective
KPI: Prepare budget for
new product innovation
team with approval and
communicaton to be
completed xx/xx/xx
KRA: Human Resources
TAA: Attract and attain an
innovative team
KPI: Recruit, select, and
induct team members by
xx/xx/xx
KRA: WHS
TAA: Ensure that all new
work areas meet
ergonomic requirements
KPI: Review new
workstation design plans
and equipment for the
new innovation team;
report to CEO xx/xx/xx
BSBWOR502 Lead and manage team effectiveness | June 18 v2.0
Jigsaw Training 16
To make a KPI specific, measurable, and time-bound clarify how success and performance will be
measured.
Example
‘The team will take more initiative in the future’.
How will we know whether or not this KPI has been achieved? What initiatives should we be
focusing on? How much is more? The phrase ‘in the future’ is also vague, and it is unclear
when this should be achieved. Re-writing this will make it more specific, measurable, and
time bound.
‘Develop a feedback system for teams by the end of the month. Provide a response to
team suggestions within 48 hours’.
These are clear – specific, measurable, and time bound.
An important characteristic of KPIs is relevance. GOATs and KPIs must further the aims of the
organisation or your team goals in the most efficient or appropriate way.
GOATs or KPIs that serve no real purpose other than appeasing others should be avoided.
Strike an appropriate balance between challenging and achievable KPIs. Setting one you’ll fail to
achieve is de-motivating. The need for success and achievement is strong, and teams are best
motivated by challenging but realistic measurements.
For a KPI to be achievable, required resources need to be available. Consider the following:
• The different human, financial, physical, and business technology resources that you and your
team need to be successful.
• What resources are presently available and unavailable?
• How access can be gained to presently unavailable resources in the future.
• Whether sufficient time has been allowed to complete the goal; if you do not allow sufficient
time, you will not give yourself the best chance of success.
• The support of your family (and/or people close to you) and mentors/managers/
supervisors/colleagues in achieving the goal. Behind each success is usually a strong support
network. Make sure you get people on board not only to provide encouragement but also to
hold you accountable to your goals. Research suggests people are more likely to achieve a
goal if they have told someone about it.
Breaking a larger vision down into smaller components makes it easier to see what needs to be
accomplished by whom and by when. This helps the team stay on track and focused on activities,
contributing to effectiveness. Breaking a larger GOAT (goal, objective, aim, or target) down into smaller
components is important for tracking and measuring progress.
Using this process, the team can collaboratively develop action plans that assign timeframes,
resources, and personnel to specific activities. Individuals should be empowered with the ability to
determine their own responsibilities. Emphasis should be placed on practical activities with measurable
results and within realistic timeframes. Each team member’s contribution should also be valued and
acknowledged.
Teams must be given responsibility for making improvements and innovation within their designated
roles to achieve the organisation’s GOATs. They require access to necessary resources, an agreedupon
level of independence in the management of their daily work within agreed-upon boundaries and
cooperative relationships (networks) with the other teams of the organisation.
BSBWOR502 Lead and manage team effectiveness | June 18 v2.0
Jigsaw Training 17
A solid performance plan must identify how the team will measure its success. How will it know whether
it has achieved its goal, and how will it know how well it has performed? The team should collectively
agree on the KPIs to be used.
Example
By January, the prototype will have 100% functionality and be capable of operating for a
minimum of 10 minutes.
KPIs are used to measure an organisation’s progress and performance toward the
achievement of goals and business objectives. KPIs can and should be established to
measure all aspects of the organisation.
Example
Financial, service, employee behavioural management, employee performance
management, product development, productivity – specifically numbers of new customers,
debtor reduction, and return on investment (ROI).
KPIs should be set and reviewed at regular intervals. Management should monitor these measures to
ensure that individuals and teams are meeting required performance standards. If not, corrective action
should be taken.
KPIs create a sense of urgency and challenge each member of the team to commit. If the required
results, measurement and evaluation methods, and review timetables are understood and agreed to by
all team members, it creates a compelling drive to make success happen.
Case study
The Right Foot Shoe Company could set the following KPIs for various team members and the organisation in
relation to this process.
S
Specific
Draw up ten
new shoe
designs by week
2
M
Measurable
Provide accurate
costings and
specifications for
all designs by
Week 4
A
Attainable
The first designs
will be thumbnails
to make the
process quicker
and to allow the
team to discuss
preliminary ideas
R
Relevant
Hold a team
meeting for one
hour each week
to discuss
progress and
performance
T
Time bound
Secure
contracts from
two new clients
by the end of
each month
BSBWOR502 Lead and manage team effectiveness | June 18 v2.0
Jigsaw Training 18
When the SMART method is used, an action plan is created to identify what will happen, how it will
happen, when it will happen, who has responsibility, and how the outcome will be measured.
Example
You are running a restaurant in a busy part of town with many competitors. Your main
clientele come to you for short breakfast and lunch meetings and after-work drinks. You
decide to offer extra seating sessions as a way to differentiate your business from your
competitors’.
Your strategic business GOAT: Increase revenue and keep expenses stable.
Your operational business GOAT: Increase sales during the early breakfast period through a
targeted marketing campaign.
Relevant TAAs:
• Give out 10 vouchers a day over the next month for early-bird discounts. The
vouchers must be redeemed the day after issue.
• Create an advertisement for your promotion, decide who your target is, create a
social media campaign, and hand out vouchers.
KPIs to measure the success of the promotion:
• Issue 100% of vouchers, 85% to be redeemed within two weeks.
• By the end of the month, you will be able to measure the number of vouchers used
and calculate the cost of the promotion against the increase in sales. This will be your return
on investment (ROI); revenue generated less costs of the campaign equals a 5% increase!
After the first two weeks, work with your team to review the results to make sure that the KPI
has been met or, if not, why not?
1.2.3 Develop performance plans
The development of a performance plan happens at the beginning of the performance cycle or the start
of a new role. Performance plans should be created, discussed, and implemented in consultation with
employees.
It is important for these documents to exist, be agreed upon, and be adhered to. The plan should clearly
communicate:
• Objectives.
• Conduct and behaviour.
• Knowledge and skills.
• KPIs (measures of success).
The plan forms a solid foundation for performance discussion. Performance management is an ongoing
process of agreement, review, assess. During the performance discussion, the performance plan should
be used as a tool, with the focus on discussion between you and the employee. Team-based
performance plans will be discussed with the team.
A template for a performance plan could be similar to this one:
Performance plan
Name:
BSBWOR502 Lead and manage team effectiveness | June 18 v2.0
Jigsaw Training 19
Date:
Team objective #1:
Key responsibilities (from
job description)
Task KPI Responsibility Timeframe
Team objective #2
Key responsibilities (from
job description)
Task KPI Responsibility Timeframe
Examples of key responsibilities depend on the overall objectives (Goal, objective, aim, target – GOAT)
but could include the following:
• working in collaboration with others to reach goats
• mentoring individuals and creating programs that suit
• conducting complete inspections
• creating programs for continuous improvement
• upgrading various processes and communication
• delivering presentations on various new initiatives.
For a team to be truly effective, there must be clear, achievable, agreed-upon key performance
indicators (KPIs).
Without KPIs, team effort will be dispersed, and without agreement, there may be only minimal commitment.
As discussed previously, most teams will have been given a broad direction from management. As part of
the process of understanding this broad direction, teams should break down the directive into smaller goals
and then further so that they have defined, actionable objectives.
The performance plan will be supported by an effective performance management process, which will
include a performance appraisal. There are eight key principles for a successful performance appraisal
system:
Steps Description
Step 1 Acknowledge there are two reasons for performance appraisal – administrative and developmental.
Step 2 Use a cascading performance appraisal process.
Step 3 Establish standards for performance that are based on the current job analysis and job descriptions.
Step 4 Use appropriate observation and data collection methods.
BSBWOR502 Lead and manage team effectiveness | June 18 v2.0
Jigsaw Training 20
Step 5 Use realistic comparisons between the observed data and predetermined standards.
Step 6 Use appropriate feedback methods regularly and address non-performance.
Step 7 Create action plans.
Step 8 Action plans become the base for your employee development programs.
The post Measuring success in business appeared first on My Assignment Online.