Is there a science to goal setting?

How does goal setting happen in organizations?

Last month you did 100. This month you should do 150. No sir, 150 is too high, I will do 110. Nonsense, 110 is ridiculous, try 135. I will try my best sir, lets keep it 115. OK lets lock it at 125.

Are we setting targets to sell IT systems, soaps, cars, banking products.

Or are we selling fruits and vegetables?

Person who is asking for 150 cannot justify 150, Team member who is asking for 110 has no rationale for 110. Both are clueless.

So what can be the techniques to set goals in a scientific manner:

a. Market growth rate & market share:

You did 100 last quarter. Industry is groing at 10%. Your market share was 16%. To maintain market share you will have to grow 10% in any case. But your target market share is 20%. So the new quarter target is ........

b. Marketing Inputs:

Last month you sold 100. You had no support from marketing. This month, we are giving you the following consumer offers and trade discounts. How much extra do you think you would be in a position to sell?

c. Market Coverage and Fundamentals:

You had a team of ten people last quarter. You are adding three new people and four new distributors to the territory. 550 more outlets will get covered. Each outlet will buy 10 initially then repeat purchase of 4 each week. Therefore new outlet and new market sales would be 300. Your goal for the quarter therefore should be 1350.

any other ways, pl contribute.

...........idea contributed by Aseem Soni, VP Sales of a large fmcg company.