Dan Feliciano answers Fast Company reader questions regarding why goal setting is so important.
His article summarizes research by Robert Kaplan and David Norton (Balanced Scorecards, Strategy Maps) that illustrates how few goals are actually aligned to the company strategy (and therefore not aligned with the company priorities.) The article also draws from the 90's textbook The Management of Organizations : Srategy, Structure, Behavior by Jay Barney and; Ricky Griffin, as well as A theory of goal setting & task performance. by Edwin Locke and Gary Latham.
Some of the statistics highlighted:
- 9 of 10 companies fail to execute strategy
- Only 25% of managers have incentives linked to strategy
- Only 5% of the workforce understand the strategy
- 85% of executive teams spend less than one hour/ month discussing strategy
- 60% of organization don’t link budgets to strategy