Yesterday, I wrote about why I love WIG’s — Wildly Important Goals. Wildly Important Goals, you will recall, are defined simply as “if we don’t do this, we will fail.” Consequently, people are assigned only 1-2 goals for the year. I noted that I had used them with my team for one performance review cycle and had some very good results.
But, Wildly Important Goals were only used for one review cycle.
Why? Well, goals are often used for performance reviews. Performance reviews can be a slippery slope when it comes to achieving goals, depending upon the management and the culture of the organization.
Criteria for using WIG’s
I’ve found that being able to use Wildly Important Goals in a corporate setting is dependent upon four factors:
There is a more subtle problem with WIG’s, reviews and management. It has to do with risk.
WIG’s and Risk
You see, goals on a review translate to money for raises. When you have a lot of goals, the percentage weight associated with them is small. Getting a “needs improvement” on a goal weighted at 5% that you had no control over and missed isn’t so bad if the other 95% is rated higher. In other words, more goals with lower weighting will give you a more average rating and raise. It is safer.
WIG’s — Wildly Important Goals — on the other hand, will often have weights of 50% for each goal. Miss one of two — or both — and all of a sudden that “needs improvement” means a whole lot more. Especially if the goal is no longer applicable to the work.
Thus, WIG’s carry a lot more risk to the individual performance review — with little reward built into equation.
WIG’s Don’t Get Rewarded
Think about it. If you meet a Wildly Important Goal — something that is defined as “we will fail if we don’t meet this goal” — then that is worth an “average” for a score on the performance review. You met the goal, nice job. You didn’t beat the goal, exceed what needed to be done; nope, no need to reward that.
The fact that you did something that would have caused failure if you didn’t meet it doesn’t enter into the lexicon of current rating systems, except, perhaps executive compensation.
Yup, just met the goal. Average. Nothing new or exciting here. Move on.
The missed opportunities are a shame.