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Reach for the stars

High stretch goals that are aligned to achievement of business targets works
for India's top performing companies. 68% of CEOs in Hewitt's Best Employers
2007 India study said that they are more likely to reward their managers and
employees on these targets.

The performance management system needs to reward employees that achieve
high stretch goals leading to creation of significant business value, rather
than rewarding employees for their ability to predict their performance
levels.

The system needs to focus more on the content of the performance metrics
than focusing on compliance by all employees. One of the leading telecom
players in India believes in setting extremely difficult targets. Its CEO
says, "We set high stretch targets and anyone achieving these targets gets
the highest rating in the organisation. This ensures that winners feel
special and also ensures no sandbagging at the target setting stage happens.
Overachievement is not expected or rewarded."


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