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The paper discusses the importance of effective goal-setting in organizations, highlighting common pitfalls such as misaligned individual and organizational objectives, and proposes agile approaches like OKRs and FAST to promote adaptability and transparency. It emphasizes the need for enabling goal-setting practices that connect employee work to organizational goals, reducing micromanagement. The research shares a case study on the OKR process, demonstrating its value in driving meaningful outcomes.

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Abstract

Abstract This chapter shares the research on the effectiveness of goal-setting, what has gone wrong with goal-setting in organizations today, and how to create enabling goal-setting practices. Setting goals for employees and teams is a fundamental part of Performance Enablement. Goals provide direction, context, purpose, and meaning for employees and help connect their work to the goals of the organization, reducing the need for micromanagement and other coercive control mechanisms. Many companies fail to align individual goals with organizational objectives, emphasize individual goals at the expense of team collaboration, focus too much on metrics and accountability, and set rigid goals that quickly become outdated. This chapter shares agile approaches to goal-setting, such as OKRs and FAST, that promote adaptability, transparency, and frequent feedback, ensuring that goals remain relevant and drive meaningful outcomes. A case study sharing the value of the OKR process is provided.

Key findings

  • Many companies fail to align individual goals with organizational objectives
  • Overemphasis on individual goals can hinder team collaboration
  • Rigid goal-setting can lead to outdated and irrelevant goals

Keywords

Agile software developmentProcess (computing)Set (abstract data type)Process managementMeaning (existential)Knowledge management

Identifiers

DOI
10.1093/9780197830642.003.0010
Journal
Performance Enablement
Year
2026