At Epicus Group, we are a strong proponent of managing by objectives where our individual goals are tied to the overall company goals and objectives. We tie our individual goals to six key business metrics, which I wrote about last year, “6 KEY BUSINESS METRICS (THAT EVERY REFM PROFESSIONAL SHOULD KNOW)” In that article I wrote that In order to be successful, we need to speak the language of business and learn how our world of commercial real estate and facilities management impacts these six key metrics:
- Market Share
- Operating Profit
- Cash Flow
- Customer Satisfaction
In addition to understanding these metrics and tying them into your role and responsibilities as a real estate / facilities management (REFM) professional, your performance should be tied back to at least one of these metrics. To do this well, company or top organizational objectives should have clear goals and objectives that tie to each metric and then cascade down the organization to the goals of the individual.
Take a look at the goals and objectives on your performance development plan (PDP) for this year. Do they tie back to your organization’s top metrics? If not, consider the possible reasons: perhaps your organization is not taking its performance development program very seriously. Or worse, the organization is using the performance development program as a tool to cover themselves when it needs to make organizational changes. If this is your situation, then you owe it to yourself to update your PDP to reflect meaningful goals and objectives.
You can follow these three basic steps to generate meaningful goals and objectives.
1. Determine where your current objectives fit into the following Goal Categories.
a. Revenue & profitability
b. Operational improvements
c. Individual skills & education
These three Goal Categories are fundamental to any organization and everything you do should impact one to improve its outcome. If any of your goals don’t seem to fit into one of these Goal Categories, then perhaps you need to develop some new goals. As a REFM professional where your profession touches every aspect of the company or organization, you should have little trouble matching them.
2. Once each of your goals and objectives are matched to a Goal Category, use the following table to match each one to the appropriate metric. Many goals and objectives will tie to more than one metric as the table below shows.
Here are some examples that an REFM professional might have as a goal:
Support market expansion activities as company rapidly gains market share in next year by providing space solutions that meet company needs. (Revenue & Profit -> Market Share)
Ensure that operational space is aligned with revenue plans and activities for the next year. (Revenue & Profit -> Revenue)
Complete 5 capital sustainability projects with ROIs less than 3 years. (Operational Improvement -> Operational Profit + Cash Flow)
Complete “Energy Star” bench-marking to compare the energy performance of every facility over 10K SF and report energy savings opportunities by June. (Operational Improvement -> Quality + Operational Profit)
3. Now that your goals are aligned with your organizational goals, make sure that the objectives tied to them are SMART which stands for:
Note – Wikipedia lists several alternate words in the SMART acronym, but I was taught these 5 many years ago and believe they are the best.
Everybody’s goals and objectives can be easily tied back to the top organizational goals. If this is not your situation, then it might be a good time for a discussion with your boss so that you can be sure that your SMART goals and objectives are aligned with your organization. You really can impact the success of your organization, but only if your work is aligned.