Goal Setting Doesn’t Have to Be Hard. Farient’s 360° Goal-Setting Approach
Challenge: A global product and service business with a history of setting aggressive stretch goals wanted to ensure the affordability of incentives while providing a stretch, yet achievable, goal range for the company’s executives.
Approach: Using Farient’s 360° Goal Setting Approach, we examined historic market trends and analyst forecasts, and considered the impact of Foreign Exchange headwinds, to evaluate proposed goal ranges and test the probability of achievement of performance goals to ensure competitive – yet achievable – calibrations. Once the analysis was completed, we recommended changes to goal ranges to account for the stretch goal, recast metric weightings to ensure affordability and align to strategic imperatives, and recalibrated client goals in line with competitive probabilities.
Result: Today, the company’s goal-setting approach enables it to align pay and performance so that outcomes are now predictable for the company and acceptable to management.