Why your business goals are holding your team back
Working towards concrete goals can leave employees resistant to exploring superior ways of achieving results
ArticleÌýat a glanceÌý
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Setting concrete goals can backfire by locking people into sub-optimalÌýways of working, according to research by Assistant Professor of Marketing GuyÌýVoichekÌý
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Making progress towards a goal increases perceived effectiveness ofÌýestablishedÌýapproaches, reducing openness to better alternativesÌý
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Leaders can counter this bias by building in structured reflectionÌýÌý
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Targets matter, but so does the means of pursuitÌý
Every year we make resolutions. Every quarter we set targets. Everywhere we measure progress. Setting concrete goals can motivate people to stay on track towardsÌýbecoming healthier,ÌýwealthierÌýand happier.ÌýBut sometimes theÌýtrackÌýwe chooseÌýis not the best way to get there and our focus on achievementÌýcan backfire because we undervalue alternative routes.ÌýÌý
DrÌýVoichek’sÌýpaper reveals a surprising way in whichÌýsettingÌýgoals canÌýgo wrong. When peopleÌýaim for a specificÌýgoal and begin pursuing it via a particular path, early progress inflates the perceived effectiveness of that path, making people less likely to adopt a superior, alternativeÌýroute.ÌýÌý
Progress creates a bias in effectivenessÌý
Through a series of studies spanningÌýdiverseÌýareas suchÌýasÌýhealth, finance and work, the authors saw a consistent pattern of behaviour. In one study, participants committed to earning a specific amount of money before beginning a task. After making initial progress using one type of task and earning some money, they became less likely to switch to an easier, higher-paying task, compared to participants who did not set a goal before beginning work. Making progress towards a concrete goal led participants to view theÌýinitialÌýapproachÌýas a more effective way to earn money, and alternative tasks as less effective. As a result, participants with a concrete earning goalÌýultimately earnedÌýless than those without a specific goal in mind.ÌýÌý
Thankfully, there isÌýa simple wayÌýto overcome this: rather than focusing only on whether your current actions advance your goal, also consider howÌýdifferent pathsÌýmight advance it.ÌýA reminder to consider the advantages of both current andÌýalternative ways of working mitigatedÌýtheÌýentrenchmentÌýcausedÌýby concreteÌýgoals, one study revealed.ÌýÌý
Once people made progress, they judged their chosen approach as more effective.
The risk of overly specific targetsÌý
Once progress metrics are embedded into dashboards, performance reviews and incentives, flexibility becomes even harder. Teams that areÌý“on targetâ€�Ìýare rarely encouraged to question how they got there.ÌýYet markets, technologies and competitive conditions change constantly. The danger is not onlyÌýpoor goal setting but rigidly sticking to the old methods that have worked in the past forÌýacquiringÌýthose targets.Ìý
What can business leaders take from this?Ìý
Organisations often become more rigid than the people that create them.ÌýIt'sÌýa powerful tendency: when we are satisfied with how things are going, weÌýdon’tÌýquestion our methods.ÌýÌý
This research adds an important dimension to our understanding of how concrete goals can produce entrenchment. ÌýÌý
HowÌýorganisations canÌýcounteract this:Ìý
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Institutionalise reflection:ÌýBuild in regular checkpoints that require teams to explicitly evaluate alternative ways of achieving their goals. Instruct employees to ask not onlyÌýwhether they are on track, but whether they are onÌýtheÌýbestÌýtrack.Ìý
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Reward course correction:ÌýIncentivise employees to change direction when doing so makes sense, rather than implicitly rewardÌýpersistence for its own sake. Consistency should not be confused with efficiency.Ìý
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Maintain high-level goals:Ìýremind people that most goals can be pursued in multiple ways, and that any given method is a meansÌý–Ìýnot anÌýend.Ìý