Research shows that financial rewards are not the only way to boost performance of an individual or team. Indeed, specific, ambitious goals (recall the research we mentioned earlier) spur performance on their own, without the need for financial incentives. A recent meta-analysis found that in mot...

In 1954, management guru Peter Drucker introduced “management by objectives,” an approach where employees would agree with their boss on a set of goals and work toward achieving those objectives throughout the year.

FAST - goals should be embedded in frequent discussions; ambitious in scope; measured by specific metrics and milestones; and transparent for everyone in the organization to see.

In the early 1970s, Intel was making the transition from memory chips to microprocessors under Andrew Grove — then the chipmaker’s executive vice president of operations. Grove implemented Intel Management by Objectives, which required employees to translate their goals into concrete actions and ...

The traditional approach to goals — the annual cycle, privately set and reviewed goals, and a strong linkage to incentives — can actually undermine the alignment, coordination, and agility that’s needed for a company to execute its strategy. Expecting employees to hit 100% of their targe...

When bonuses are tied to hitting targets, employees may opt for cost-reduction initiatives that are fully under their control, as opposed to growing sales, which depends on the actions of customers, partners, and competitors. Or they might attempt to wring incremental improvements out of existing...

When goals are kept private, employees are often in the dark about what people on other teams are doing. When employees don’t know one another’s goals, they are more likely to make unrealistic demands, focus on activities that don’t support their colleagues, or duplicate effort.