Setting annual objectives is an excellent management practice in many organizations. While large, private firms have strict rules about objectives that lead to specific bonuses, smaller organizations benefit from more creative approaches.
A common failing in setting annual objectives is designing them so they start in January and end in December, or span another twelve month period. Instead we need to regard the word "annual" as merely an indicator of review periods. Objectives can span longer periods of time, or more usefully, smaller periods of time.
The sense of accomplishment that comes from completing an objective is a motivator that should be spread across the year. Large projects or goals can be split into modules, with the accomplishment of each module defined in the objectives-setting document. Modules might be designed according to schedules that suit the work, or they could be designed to be completed within a three-month or six-month period.
Inexperienced staff or de-moralized staff benefit the most from the setting of shorter-term objectives. They need the oversight implied in reviewing accomplishments every quarter or semi-annually. More frequent completion dates with work reviews boost the confidence of staff who are less clear on their direction in the organization. As the manager, we can better assess their progress and make useful suggestions as objectives are realized or missed - without risking a whole year of work. That helps us achieve our annual objectives.
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