The Evil Of Goal Setting - Aditya Yadav


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The Evil Of Goal Setting - Aditya Yadav

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The Evil Of Goal Setting - Aditya Yadav

  1. 1. * “Running an Agile Fortune 500 Company” Aditya Yadav,
  2. 2. * A Typical Global Company * Fortune 500/1000 * 200 Divisions * 40 Countries * 25000 Employees *
  3. 3. * @ Acme Inc.
  4. 4. * Original Question “We need to set Stretch goals to motivate, challenge and push our people further. How do we cascade and align the goals down the hierarchy the best way?”* The Correct Question - “Goal Setting can be very destructive to the Organization. Can we think of better ways of Executing on our Emergent Strategy?” *
  5. 5. * And The Philosophy Behind The Answer
  6. 6. *
  7. 7. * Come January - Its that time of the year when we set Big Hairy Audacious Goals [BHAGs] for our Organization* Every year we follow this Ritual, which we have been doing since the Origin Of Time.* And we will cascade it down to the last person in the Organization* The Aim will be to Align everyone from the top to the Bottom. The assumption is that if we align well enough we will successfully execute our Strategy.* Goal Setting is the Foundational Pillar of how we do our Business everything starts from there* Your Organization follows “Management by Objectives” i.e. basically The Outcome justifies the Means. *
  8. 8. * The Organizational Cost of Setting Goals is too high, to the extent of Organizational Self Cannibalism [Autophagy]* While Goal Setting might seem to make sense* Irrespective of What Goals you set. Stretch or not* There is no basis of Any Goals in Reality or Rationality* E.g. last year we did 200 so this year we will do 250. Why? How? At What Cost?* This presentation outlines the neglected costs of Goal Setting *
  9. 9. * This is the world of Measurable Targets, Goals, Metrics, KPI‟s, Measures, Dashboards, Reports* Everything has to be precise and objective* Everything has to be measurable and trackable (aka Manageable)* You heavily incentivize meeting that goal because human beings don‟t do anything at all without incentives* You decompose a larger goal into smaller parts for everyone down the hierarchy* You set the Quarter or Year End as the Time Frame *
  10. 10. * Every Archers Goal since he starts learning is to Hit the Bulls Eye „each time everytime‟. By that logic every Archer in the world should be Apollo.* Every parent (In India) tortures their kids all their lives and gives them the Target of coming first in everything they do. We all know how that turns out, the success rate and the costs.* Goal Setting doesn‟t help in achieving the goals as a team. And no amount of Alignment can solve that* The Evolution of Strategy implies any Alignment even if it exists and works temporally turns into perfect Dis-Alignment very soon* It puts every individual, team and division in the company into a direct conflict of interest with every other individual, team and division *
  11. 11. * Everyone deprioritizes and suppresses every part of the bigger goal they are not responsible for in an effort to optimize the part that they are responsible for* Conversely if you try to solve that and make everyone‟s goals to be increasingly comprehensive. It is proven that nothing will be achieved anyway* So either you will achieve nothing or you will achieve something in parts by killing your organization* Also if something cannot be articulated as a measurable goal it will always be compromised the first thing in the attempt to reach goals *
  12. 12. * Cheating and Unethical Behavior, * Problems of Compliance and* False Promises and Last Minute Regulations, Betrayals * Immoral Behavior,* Misrepresentation and * Social Irresponsibility, Miscommunication* High and Disproportionate Risk Taking, * Environmental Damage,* Compromises Security, * Myopic and Parasitic Behavior,* Increases Shortcuts and Bypassing of * Specialization vs Macro Problem Norms, Solving* Complexity, * Stress and Burn Out* Violations of the Law,* Managing Expectations than Maximizing * Failure and Fear Of Failure Success * Performance Degradation* Mediocrity and Conspiracy to Lower * Slowness and Drop in Throughput the Bar and Productivity* Non-incentive to Surpass Goals *
  13. 13. * Valuing only the „Outcome‟ * Organizational Learning and and not Rewarding Behaviors, Adaptability, Values, Principles and * Culture, Philosophy leads to extinction of * Intrinsic Motivation, * Knowledge Sharing, * Trust * Collaboration, * Value * Team Work, * Reputation, * Consensus, * Quality, * Co-ordination * Reliability * Innovation, * Passion * Creativity, * Satisfaction & Engagement * Introspection, * Experience *
  14. 14. * Can you recognize such problems? … * Across your Company, * Or excessively in a particular Industry e.g. Finance. * Or specific Functions e.g. Sales….* Excessively Goal/Target/Incentive Driven? Ofcourse!* Now you know the ONE origin of ALL those problems.* Also Goal Setting makes Emergent Strategies virtually impossible. Without which, your company has minimal chances of Survival today.* Moral: Don‟t Rejoice if Profits increase Temporally. Its only happening by cannibalizing the entire Organization *
  15. 15. * Set the „Direction‟ and „Do Your Best‟ not Goals and Targets* Management Minimalism* Over communicate Values, Principles, Philosophy and Direction* Continuous Coaching* Value Behavior rather than just Outcomes* Beware: Of The Conspiracy of Mediocrity *
  16. 16. Aditya!!! *