The document outlines 10 essential tips for effective target-setting in cost reduction initiatives for organizations. Key points emphasize the distinction between goal setting and target setting, the importance of top-down targets, and recognizing that targets alone won't guarantee success. It also suggests practical approaches for setting realistic targets and integrating them into organizational budgeting.

1. Channonconsulting.com 847.945.2409 © 2015 Channon & Associates
10 Target-Setting Tips, Tricks, & Traps
For Your Organization’s Cost Reduction Initiative

2. Channonconsulting.com 847.945.2409 © 2015 Channon & Associates
10 Target-Setting Tips, Tricks, & Traps
1. Goal setting is not target-setting
2. Targets should be set top-down
3. The time spent setting targets will directly
impact savings realized
4. Targets are necessary, but not sufficient
5. Stretch targets must allow for “slippage”
6. Targeted RN-patient ratios produce actual
patient loads 15% lower
7. Benchmarking is not target-setting
8. Benchmarking is only one input to target-
setting
9. Targets can be set without benchmarks
10. An unwillingness to set targets will doom your
organization’s cost reduction effort to fail
Set strategic
and financial
context
Fast-track
Targets and plans
Count the
Right Things
“Do the
right things
Choke up for
singles and doubles
Tap Hidden
Management
Reserves
Bake plans
into budget