How to align targets to financial metrics
plugHRapp aligns targets to business goals
Best of all, plugHRapp does it without making much hullabaloo about it
Supervisors are free to set any targets but they'll pick a KRA and a Success indicator
This makes the goals aligned right at source. Let's face it, most professionals know that when the goal period ends, they'll be rated for their performance against assigned targets. So by ensuring that each target belongs to right KRA set, aimed at moving right success indicator, plugHRapp builds perfect alignment of objectives across the Organization.
Now left to you, it would probably take another few years for success indicators to get defined. So plugHRapp doesn't leave it to chance, success indicators are built in, that saves you the whole KPI, alignment challenge & heartburn. That also makes your target setting & reviewing cycle ready to run right at start, whether you have HR team or not.
Success Indicators are clearly measurable needles that need to move
Entrepreneurs would be jolly glad to see the list of success indicators in plugHRapp as it speaks their language. Chasing targets that are aimed at moving indicators like gross sales, EBIDTA, PAT, Client satisfaction, Direct cost, Execution velocity and similar top level Organization performance indicators make the whole performance management rigour worth its while. Everyone goes after what matters.
Clarity of goals auto corrects mis-alignments
With each target being marked to point to right success indicator, supervisor will find it hard to assign all target set to anyone without ensuring that significant part of them are moving right needles. After all if someone's target isn't aimed at Organizational goals at all, well, then the question "Why do we have this role anyways?" will come up pretty quick. Clarity will sort mis-alignment on its own.
No fools paradise, no place to hide
Lastly, to find out if that much talked about objective would have any chance of being achieved, just look at the number of targets aligned to that success indicator. There may be bad news in pipeline but good part is, you can spot it on day one and raise hell fast.
To summarize, plugHRapp ensures supervisors are free to set targets and weightages on targets as they please as long as they pick a KRA and a success indicator for each target. Success indicators are top level Organization metrics like gross sales, EBITDA, PAT that get reported in financial reports making it easy to measure impact. This target setting habit ensures that the entire Organization spends resources, both money & time chasing right objectives. Best part, no one needs to create anything, its all pre-set in plugHRapp.