Goal Setting Tool Kit Linking Individual Performance to Organizational Goals

1. Goal Setting Tool KitLinking Individual Performance to Organizational Goals ►S.M.A.R.T. Goals ►Aligned Goals ►Calibrated Goals ►Cascaded Goals

2. Objectives • Define the components of Goal Setting including S.M.A.R.T. goals, alignment, calibration, and cascading. • Understand the importance of goal setting for achieving business results • Understand the manager’s role and the direct report’s role in goal setting. • Develop, align, calibrate, and cascade individual S.M.A.R.T. goals with the System, Business Unit, and Department goals.

3. Benefits of Effective Goal Setting Overall goal setting will help you and your direct reports: • Integrate the work unit’s business goals with people’s individual goals. • Agree on specific performance goals and the results expected. • Resolve differences to develop challenging yet realistic goals. • Develop an up-front, agreed-upon basis for reviewing and discussing performance, preventing surprises at the performance discussion.

4. Benefits of Effective Goal Setting Goal setting will answer these questions for your direct reports: • What are the system’s priorities? • What are my manager’s priorities? • What am I expected to accomplish? By when? • How will I accomplish it? • What resources will I need to be successful? • What are the time/cost/quality constraints? • How will my manager and I know if I have successfully accomplished each goal?

5. Keys to making goal setting practical and relevant • Ensure that everyone involved in achieving a goal is involved in setting it. • Hold goal-setting conversations not only between managers and direct reports, but also with managers, colleagues, team members, and customers. • Ensure that each person in the system has a set of business-related goals to guide his/her actions throughout the year. • Hold people accountable for achieving their goals. • Review goals regularly and revise them when necessary to meet the demands of the changing business conditions. • Monitor progress of employee’s performance against goals they have set at the minimum every six months.

6. Effective Goal Setting To be effective at guiding business success, goals need to be: Specific/Measurable/Attainable/Relevant/Time bound Aligned with the System’s strategic goals Calibrated using specific measures, weights, and number of goals Cascaded to the right employees as appropriate.

7. “SMART” Goals are Well Defined Goals

8. “SMART” Goals are Well Defined Goals Example of a goal that isnotS.M.A.R.T.: “Try to improve our customer satisfaction as quickly as possible.” Example of a goal thatisS.M.A.R.T.: “Implement a customer satisfaction program to increase satisfaction rates by 10% by year end. Launch Program by July and work with peers to define our processes and protocol to support the program.”

9. Goal Alignmentis making sure that the goals of individual employees support the strategic goals of the system. System > BU > Dept. > Individual= Goal Alignment Leadership goals & department goals must align with each other.

10. Goal Alignment (System > BU > Department > Individual) EXAMPLE of Alignment System Goals • Increase Patient Satisfaction with targets specified for each BU by the end of the 4th Quarter. 2. As part of your overall performance management process, all leaders will create an effective development plan that supports their individual and/or career growth and includes the completion of their Talent Profile BU Goals • Improve Customer satisfaction and have an overall likelihood to recommend score of 75.4% 2. Leader creates an individual development plan by February 28, including at least two S.M.A.R.T. development goals with specific activities to support attainment of goal (s). Leader completes their Talent Profile by end of First Quarter.

11. Goal Calibration is ensuring that the goal Measurements, Weights, and the Number of goals are consistent and standard among similar job positions.

12. Goal Calibration: MeasurementIdentify specific measures for each of the five rating categories. "Top Box" 5 out of 5 scores: "Likelihood to Recommend" services for Henry Ford Hospital and Health Network (patient engagement) GOAL - 70.3% to 73.1% (2.8% increase) Healthcare acquired infection regarding C-diff rate GOAL - 15/10,000 days Current performance is 20/10,000 1= greater than 20 per 10,000 days 2 = 16 to 19.9 per 10,000 days 3 = 15 to 15.9 per 10,000 days 4 = 11 to 14.9 per 10,000 days 5 = 10 to 10.9 per 10,000 days 1 = less than 70.3% 2 = 70.3% to 71% 3 = 71.1% to 72% 4 = 72.1% to 73% 5 = 73.1 or greater

13. Goal Calibration: Weighting • Goals should be weighted according to what the employee is accountable for. • Do not share the same weights for a goal when the employee’s responsibilities do not impact the weight. • Assign weights according to the goal’s importance and impact to the organization.

14. Goal Calibration: Number of Goals • Goals should describe what employees need to keep in mind as they go about performing and planning their day-to-day work. • Research suggests that the optimal number of employee goals is between 2 and 4. • Employees should be able to easily remember and recite all the goals in their goal plan. • Do not confuse goals with tasks.

15. Cascading A Goal Cascading goals is a straightforward method for ensuring goal alignment.

16. Cascading Checkpoints

17. Cascading Goals: Example Category = Financial (CEO) (Sr. VP of Operations) (HR Manager)

18. Goal Cascading Example - 2

19. Cascading A Goal Access Online Performance Management Home Page Go to the GOALS TAB and Click. Open the correct year Goal Plan. Select by checking the box next to each goal (s) to be cascaded. Click onto the CASCADE SELECTED button. Next screen—select the recipients/employees you wish to cascade the goal (s). Next screen—edit the goal before you cascade to make sure the goal is relevant to your direct employee (s). Click onto the CASCADE button

20. Cascading A GoalScreen Shots

21. Goal Alignment Goal Review Monitor progress, course correct Goal Execution is a Process Spanning Multiple Months Goal Execution Communicate and coordinate with initiative team Reinforce goals every day Carry out tasks to accomplish goals How can you reinforce aligned HFHS System goals in every day work?

22. 5 Levels of Goal Setting Excellence

23. Goal Setting Training & Resources • Create and Cascade Performance Goals online instructions available on the “Show Me Video Tutorial” located on the HOME PAGE. • “Get SMART With Your Goals” workshop available the HFHS University. • “Conducting Performance Discussions” (Managers) workshop available on the HFHS University. • “Preparing for a Performance Discussion” (Employees) workshop available on the HFHS University. • “Goal Setting” workshop available on the HFHS University in February/March.