The success factors: goal setting, execution tools and performance feedback
A study has found that companies which set and align goals, vary performance feedback and use tools effectively to increase business execution see higher stock returns and grow more quickly than those who don’t.
The research, which was undertaken with data on goal setting, alignment, and system usage characteristics in 153 of SuccessFactors publicly traded customers, discovered a statistically significant positive relationship between each of the Business Execution dimensions studied and industry-adjusted stock returns.
The statistical analyses revealed four distinct business execution characteristics that influence the employee performance evaluation process:
1. Goal Number Dimension: The average number of goal plans per employee during the year,
2. Alignment: The degree to which goals are aligned throughout the organisation.
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