You set your goals, everything seems all right for the middle management and for the white-collars, the targets are known. How about the blue-collar employees? How much do they aware of the future and today of the company?”
Target deployment is the basics of “Management by Objectives”. It’s an effective tool to deploy company’s objectives to the whole organization. The main objective of target deployment is to identify, implement and follow-up the company’s objectives systematically. Unfortunately, in many companies, targets are not deployed from top management to lower levels. If blue-collars are lucky, they pick up the targets from time to time.
Target deployment is very important in terms of providing to speak same language in between the field staff and senior management. Additionally, it brings a systematic approach to the company targets. We can say that the flow of information becomes leaner and target follow-up becomes much easier. As a result of all of these employees, no matter what stages they are in, will be aware of their contributions to the success of business and make proud of it. This awareness provides the motivation,which is essential for efficient operation.
However, there is an important point which should be kept in mind regarding target deployment.Do you think that it is enough to set the targets annually? Absolutely not! Targets should not be live alone in a wall panel somewhere in the production area until turning to yellowish group of papers. The key implementation is to follow up the targets in short intervals, questioning them and make sure that they are understood by the employees.
What should be the base of Target Deployment?
The principles of a company can be set by identifying its reason of existence (mission) and the future state where it wants to position itself (vision). The vision & mission concepts put forwarded by the company are completed with the company values and vision and mission can be achieved via the strategy the company created.
Vision, mission, values and related strategies can be managed by creating breakdowns in the targets.The balanced scorecard is a simple and unique tool can be used to catch the desired level.
Starting point is to establish the balance score card. BSC provides company organization, to transform per-determined targets into actions to achieve vision and mission.
The targets which are created in respect of vision&mission are grouped under four strategic areas, and being detailed from top to down. The key question here is “How the vision will be accomplished?”
The answer to the question, how to achieve the vision in terms of financial perspective, should be able to provide logical and numerical data. Increase the sales revenues €2.000.000 in next three years would be a good example.
In respect of “Customer perspective ”; development of loyal customer relationships, for “Business Processes Perspective ”; improvement of operational excellence, the decrease of field failure rate by %8 in three-year, would be some noticeable examples. Ultimately, regarding “Employee” perspective, personal development of each single employee and empowerment of them are worth to take into account.
Above mentioned four strategic perspectives are the core components of the BSC. Key Performance Parameters are derived from these titles.
How to deploy the targets?
All Targets and related KPIs should be delivered relevant department heads in the beginning of the year.
Determined targets should cover short, mid and long-term planning duration.Short term can be defined as one year, mid-term as one to four and long term as four to ten years duration.
Undoubtedly, blue collars will not pay attention to the targets more than one year, but the middle and top management have to know them clearly.
Which tools are needed for Target Deployment?
The answer is quite simple, establishing the KPIs and follow up.
The best way of establishing KPIs would be using KPI tree systematic. From top to down follow up, it will help you to determine the KPIs and their breakdowns. Additionally, It provides to see the big Picture.
KPIs are derived from business objectives namely, quality, cost, and delivery. The first step is establishing the first level of KPIs. The first level of KPIs should be the parameters which are used for measuring the overall performance of the company and followed up by the middle and top management. They do not need to compromise all details of the sub-KPIs.Second and lower levels of KPIs are directly derived from the upper levels.
The process starts with the routine follow-up of the targets by both white and blue collars.The determined KPIs should be delegated to employees by management. Targets and KPIs should be transparent and clear and should be handed over in written as well.
White collars can follow-up the KPIs via e-mails or from the wall panels.However, in order to inspire the blue collars and motivate them through the right direction, “ Target Deployment Card” implementation is the tool which is perfectly suited.
Target Deployment Card should include KPIs for blue collars and the targets as well. Monthly results are written on the cards by employees and are reviewed with their managers.Thus, employees will be able to see their contribution to the company success and follow up their performance.
Target Deployment Card for Blue Collars: