I am in the middle of setting the AOP or Annual Operating Plan for my product lines. It is an annual “event” where we are told how much we have to grow revenue and margin next year and then we have to develop a plan to meet that goal. This is neither strategic nor realistic but it is how many companies do it.
Before this week, I though the concept was ill-conceived because it set expectations based on corporate needs rather than what is viable given the market’s and company’s ability and willingness to support the plan. I now think that it is quite possible that an AOP-like device can limit growth if there is not a sufficient reward for greatly exceeding the target.
What if there was a “stretch” goal that, if met, payed-out like hitting a trifecta? Say the bonus was 25% of base pay or better yet, 25% of the gross margin of the stretch goal? This would provide compensation for a job done far beyond the normally acceptable. If the individual is not driven by more money, then how about achieving the goal meant his or her choice of temporary assignment to permit growth within the company.
Are you setting goals for yourself that are so easily attainable that there is no satisfaction when met? Are you adequately rewarding yourself for meeting a tough goal or challenge? I will be focusing more on these 2 concepts in the coming months. I have grown tired of limiting myself and my future.