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Managers are the linchpins of organizational success, driving team performance, fostering employee growth, and ensuring strategic goals are met.

Common challenges faced by people managers include managing team dynamics, addressing performance issues, navigating organizational changes, ensuring employee engagement, and balancing individual and business needs.

To excel in this vital role, managers need clear performance goals that are aligned with the organization’s objectives and their personal development.

Setting these goals not only ensures accountability but also empowers managers to lead effectively, adapt to challenges, and inspire their teams to achieve their best.

What Are Performance Goals For Managers?

Performance goals for managers are specific, measurable objectives designed to guide and enhance a manager’s effectiveness in their role.

These goals focus on key areas such as leadership, team development, operational efficiency, and strategic alignment, ensuring that managers contribute meaningfully to organizational success.

These goals can very depending on skills gaps and organizational need, from obtaining a management certification, developing new training for employees or refining performance management processes.

Why are they important?

According to a study by BI worldwide, workers with goals are 8.1 times more likely to actively look for ways to improve the way they work.

Effective goal setting helps to:

  1. Align individual and organizational objectives: Performance goals ensure that a manager’s efforts directly support the company’s strategic priorities and long-term vision.
  2. Drive accountability: Clear goals help managers take ownership of their responsibilities and track progress against defined benchmarks.
  3. Enhance leadership skills: Goals focused on communication, decision-making, and team-building foster continuous improvement and effective leadership.
  4. Improve team performance: By setting goals that prioritize coaching, engagement, and development, managers can cultivate high-performing teams.
  5. Encourage growth and adaptability: Goals provide a framework for personal and professional growth, enabling managers to stay competitive and responsive to evolving challenges.

Well-set performance goals are like a GPS with clear directions to a destination, milestones and alerts for turns, and guiding adjustments if things go off track.

Poorly defined goals are like setting off without a map—wasting time, causing confusion, and making it harder to reach the desired outcome.

Author's Tip

Author's Tip

Use performance management software to help with setting and tracking goals.

Example Performance Goals For Managers

Here are some example performance goals for managers that can be tailored to align with organizational objectives and personal growth areas.

While there are many goal setting methodologies to choose from, I’ve gone for the SMART methodology meaning:

  • Specific: Well-defined and clear.
  • Measurable: Criteria to track progress and determine success.
  • Achievable: Realistic and attainable, given available resources and constraints.
  • Relevant: Aligned with broader objectives, ensuring they have a meaningful impact.
  • Time-Bound: A defined timeframe or deadline for completion.

Leadership goals

  • Leadership development goal: "Attend at least two leadership training workshops within the next six months to enhance conflict resolution and decision-making skills."
  • Vision alignment goal: "Develop and communicate a clear team vision aligned with company objectives within the next three months, ensuring 100% of team members understand their role in achieving it."
  • Empowerment goal: "Delegate at least 20% more responsibilities to team members over the next quarter to build trust and encourage autonomy, tracking outcomes through monthly reviews."
  • Recognition and motivation goal: "Recognize and celebrate team achievements at least twice a month for the next quarter to boost morale and engagement."
  • Strategic networking goal: "Build relationships with five key stakeholders across the organization within the next three months to enhance collaboration and influence."
  • Feedback and adaptability: Actively seek 360-degree feedback twice a year and implement at least two specific improvements based on the input received.
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Team development goals

  • Empower growth: "Hold one-on-one development discussions with all team members by the end of the quarter to create personalized growth plans aligned with their career aspirations."
  • Mentorship and growth: “Identify and mentor at least two high-potential employees for leadership roles within the next 12 months.”
  • Presentation skills goal: "Have each team member deliver at least one presentation to the team within the next two months to enhance public speaking and confidence."
  • Adaptability goal: "Assign team members to one unfamiliar project per quarter for the next year to enhance their ability to adapt and learn new skills."

Operational goals

  • Process efficiency goal: "Reduce the team's project turnaround time by 15% over the next three months by streamlining workflows and adopting new task management tools."
  • Budget management goal: "Maintain project costs within 5% of the allocated budget for the next fiscal year by conducting monthly expense reviews and identifying cost-saving opportunities."
  • Quality improvement goal: "Achieve a 95% quality compliance rate in team deliverables by the end of the next quarter through bi-weekly quality assurance checks."
  • Resource allocation goal: "Reassign underutilized team resources to high-priority tasks within the next 30 days to maximize productivity."
  • Data-driven decision-making goal: "Implement a new reporting system to track key performance indicators (KPIs) weekly by the end of next month, ensuring 100% visibility of team performance."

Strategic goals

  • Long-term vision goal: "Develop a three-year strategic plan for the department, including measurable milestones, by the end of the fiscal year."
  • Market competitiveness goal: "Launch one innovative service offering within the next six months to improve market positioning and drive a 10% increase in revenue."
  • Talent retention strategy goal: "Reduce team turnover by 20% over the next year by implementing targeted retention strategies, such as mentorship programs and career development plans."
  • Cross-functional collaboration goal: "Establish partnerships with at least three other departments within the next quarter to align on shared objectives and improve cross-functional efficiencies."
  • Customer satisfaction goal: "Increase customer satisfaction scores by 10% within the next six months through targeted process improvements and enhanced team training."

Communication and collaboration goals

  • Enhance Communication: Conduct weekly team meetings and quarterly one-on-one check-ins to ensure clarity of expectations and address concerns proactively.
  • Cross-functional collaboration: Lead or participate in at least two cross-departmental projects this year to improve interdepartmental relationships and project outcomes.

Innovation and problem-solving goals

  • Foster Innovation: Encourage team members to submit at least five new ideas per quarter, and implement one high-impact idea annually.
  • Resolve Team Challenges: Address and resolve recurring team conflict or productivity issues within the next three months by applying conflict resolution strategies.

How To Set Effective Performance Goals Using The SMART Methodology

The SMART framework transforms vague objectives into clear, actionable employee goals, enhancing clarity and effectiveness.

While it’s important for goals to be attainable, 31% of employees in the BI Worldwide study said their managers fail to set goals that challenge them. 

It’s a balancing act between setting goals that stretch capabilities but remain within realistic bounds.

Ensuring that goals are relevant to the company's overall objectives and setting a specific timeframe for achievement is crucial. 

This alignment creates a sense of urgency and helps maintain focus on the company's broader strategic aims.

1. Specificity

Clearly define what the goal is and what needs to be accomplished. Avoid vague language and focus on precise outcomes.

Example: "Improve team communication by implementing a weekly check-in process."

2. Measurable

Ensure the goal can be quantified or assessed with clear metrics to track progress.

Example: "Achieve 90% participation in weekly team check-ins over the next three months."

3. Achievable

Set goals that are realistic and attainable, considering the manager's workload, resources, and time constraints.

Example: "Reduce project delays by 15% in the next quarter by streamlining the task assignment process."

Author's Tip

Author's Tip

For goals that are complex or longer term, consider setting milestones or breaking up into sub-goals to ensure people stay on track or don’t lose motivation.

Pro tip, Alice Ferretti: For goals that are complex or longer term, consider setting milestones or breaking up into sub-goals to ensure people stay on track or don’t lose motivation.  

4. Relevant

Align goals with organizational objectives to ensure they contribute to broader success.

Example: "Develop team members’ technical skills to improve overall project quality and meet department KPIs."

5. Time-bound

Set a deadline or timeframe for achieving the goal to create urgency and focus.

Example: "Complete team development plans for all team members by the end of the next quarter."

Additional tips for creating SMART manager performance goals:

  • Involve managers in the goal-setting process to ensure buy-in and ownership.
  • Balance long-term strategic goals with short-term operational priorities.
  • Regularly review and adjust goals to account for changes in priorities or unforeseen challenges.
  • Provide managers with the resources and support needed to achieve their goals.
  • Set goals that are sustainable and won't result in diminishing returns over time, particularly if they lead to exhaustion or disengagement. Remember, managers are setting the example for their team!
  • Assess progress on a regular basis to allow for course correction and learning from any setbacks or failures. A good way to keep track of your progress is to set a monthly reminder to update a goal tracker or make note of milestones reached every month. Here is a template for a goal tracker with a monthly schedule update.
  • Too often we focus on what’s not going well, take time to celebrate milestones and achievements, no matter how small. This boosts morale and encourages a positive mindset for tackling future challenges. Here are some employee recognition ideas.

Toward Better People Management

People management is no easy task, and many managers are handed the title with little or no training or guidance, so reviewing manager performance and setting effective manager performance goals is vital.

Some useful resources to aid in manager development include Cillian Dore’s excellent article on manager development and our roundup of the best new manager courses.

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Finn Bartram

Finn is an editor at People Managing People. He's passionate about growing organizations where people are empowered to continuously improve and genuinely enjoy coming to work. If not at his desk, you can find him playing sports or enjoying the great outdoors.

Alice Ferretti

Alice Ferretti is an accomplished global HR leader with over 12 years of experience in managing and scaling human resources functions across diverse industries and regions.