Performance Goals vs. Outcome Goals
May 5th 2007Nate MollerGoal Setting & Sales & Marketing
Performance Goal vs. Outcome Goal - What’s the Difference?
This is a question I had as I did research about setting and achieving goals. Of course we all want outcomes, results, money in the bank. But before that happens we have to take the necessary steps to get everything in place. This is where “Performance Goals” come in to the picture.
If our goals are based on outcome and outcome only, our motivation may be super high at first; as we achieve the initial goal, the benefits of further achievement at the same level are reduced and motivation will decrease.
I know this seems hard to believe, especially when we’re talking about money. However, sometimes we don’t have complete control of how much money we make on a given day, week, month or year. If we set goals that we have control of, our mindset and motivation are not going to be in the hands of others. There’s nothing worse than failing to achieve a personal goal for reasons beyond your control such as bad business environments, poor judging, bad weather, injury, or just plain bad luck. Goals based on outcomes are extremely vulnerable to failure because of things beyond our control.
For example, you might achieve a personal best time in a race, but still be disqualified as a result of a poor judging decision. If you set an outcome goal of being in the top three, then this will be a defeat. If you set a performance goal of achieving a particular time, then you will have achieved the goal and can draw satisfaction and self-confidence from achievement.
Another example of an outcome goal is to make a certain amount of money today or by the end of the week. In my Moller Mission Statement, I set specific “outcome goals”. But, in front of those outcome goals were well defined, written out action steps (or “performance goals”) that I held myself to in order to achieve the final result. If I want to make a certain amount of money, I’d better set specific goals I have control of. Here are some questions you can ask yourself as you set “performance goals” for your business:
- How many people do I plan to contact every day?
- What book am I going to read to get ideas for help with my sales?
- How many current clients will I talk to about their purchases and attempt to get repeat business with?
- Do I have a “Plan of Attack” on what I’m going to do each day to increase the chances of making more sales?
What are “Performance Goals” you all have set the help you get the “Outcomes” you want?
19 Comments »
Noreen Sheridan on 14 May 2007 at 6:35 am #
Good tips on goal setting. If you think of your daily “to do” list as “performance goals” instead of just tasks, it will help you focus on and achieve your “outcome goals”.
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Laura Pappas on 15 May 2007 at 2:44 pm #
If people would base goals on performance, there would be much more satisfaction in what we do daily. So many times, goals are based on outcome, and for one reason or another, the goal is not achieved because of circumstances beond our control. Once you understand this concept, you can find it in sports, work etc.
Blogging is an excellent way to get readers, feedback on what you wrote, and people to keep coming to your site. The sharing of ideas lets you see not only what they think of what you wrote about but they may present a different outlook then yours, giving you another perspective on the issue you wrote about.
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Lawrence whipple on 17 May 2007 at 7:07 pm #
It really is true what you said about how in the beginning we are super motivated and then when things arent looking the way we pictured our motivation dwindles. I think that reinforces the need to set performance based goals that will give us a sense of accomplishment and motivation even if our ultimate goal is not reached in the manner we’d like.
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Adnan Kaleemi on 24 May 2007 at 7:49 pm #
How many people do I plan to contact every day?
People who sign up at my website. I will start a free newsletter program which will be a reminder for the signees and give them a reason to come back and visit the website and ultimately sign up for the regular paid service. I am looking forward to get 500 visitors a day within two months of time and start targeting them.
What book am I going to read to get ideas for help with my sales?
good to great companies. Also books from fellow commodity trading advisors who have done this in my field.
How many current clients will I talk to about their purchases and attempt to get repeat business with?
200-300
Do I have a “Plan of Attack†on what I’m going to do each day to increase the chances of making more sales?
What are “Performance Goals†you all have set to help you get the “Outcomes†you want?
Very important question. My own trading account activity. My own performance will determine what I can provide. My own positive outcome in my real time trading account will be the evidence of what I can do for my clients.
Make the website front page more attractive and starting a free weekly newsletter. Free phone consultation service for the first time clients. Following up on how they are doing.
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Carlos on 29 May 2007 at 11:54 am #
Great Article Thanks Nate!
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Adnan Kaleemi on 17 Jun 2007 at 10:53 am #
Nate,
Your idea of win win situations is great. I agree with that. I can produce gains for myself and share them with my clients.
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Robin Barbre on 21 Jun 2007 at 9:14 pm #
For me performance equals goals. If my performance each day is productive then I can assume my goals are being met. I can feel good about my outcome. Staying on track and keeping my goals reachable will make the outcome feel great. Motivation, goals, and performance are all included in outcome. Thanks.
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Janet on 22 Jun 2007 at 11:42 am #
Nate,
You recorded a call for your students about this topic. Since I know you, I tell them that you really follow your own advice. Almost everyone who listens to this call raves about it.
It’s very common for people, me included, to get caught up in dreams and forget the small unglamorous steps along the way. There are some we love to do and others are chores. Making small goals and making a little progress consistently over time is the key.
I like to say it’s not “NO” I can’t do something, but “WHEN” I’ll accomplish it. Some goals are longer term, yet we want everything now. Finding satisfaction out of the things you accomplish as you go can help you keep going when you lose motivation.
Best
Janet
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thomas jacob on 01 Jul 2007 at 6:40 am #
well i think that you lose interest as go along but i look at my goal everday that are in front of me and i say i need this i want this dont give up and just thing of your acoploges as your goal and you will be there sooner then you thank you
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Linda Van Artsdalen on 04 Jul 2007 at 6:57 am #
Performance = Goals; if you genuinely plan, then strive to achieve those plans, do not give up even if it takes 3 weeks instead of one week as you planed, and stay positive. I think the one key to success is to focus on the things you can control and not complain because something happened that you could not control. When things like that happen then just re-construct your plans to figure a way to achieve your goal by taking a different route. Let us all admit things happen in life that we don’t plan on like sickness, family issues, attitudes of others. These are just a few things in life you cannot control. You just have to adapt yourself, deal with issues as they happen, stay positive (as hard as it may be at times) re-prioritize. Sometimes slow and steady is best; you do not burn yourself out before you get to the finish line.
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Linda Bonney on 16 Jul 2007 at 11:10 am #
Thinking of ‘goals’ as a ‘to do list’ makes it a little easier for me to wrap my head around !!
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Wanda Jensen on 21 Jul 2007 at 8:59 am #
Nate,
Excellent ideas on goal setting. This has always been a weak area for me, not so much the long-term ones, but the ones that will get me there day to day. I really like the idea presented by Noreen on May 14th, about looking at the “to do list” as “performance goals.” Thanks again.
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Kevin O'Donnell on 27 Jul 2007 at 5:05 pm #
Nate,
I really like the idea of performance goals, eventually they will add up to outcome goals in their own time. Very insightful and helpful. Thanks
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Ian Jackson on 04 Sep 2007 at 11:12 am #
Everything i’ve read so far looks really positive, any goal whether it short or long has to be planned, but of coarse even the best plans go astray, and then the sinking feeling kicks in, it’s at those particular times when you must stay focust, single minded & determind to keep going no matter what stands in your way. Often you feel overwelmed by the enormity of the task, I suppose similar to eating an elephant, you cant eat it all at once, so you eat it one bite at a time same as attaining goals one step at a time.
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Jerry Stout on 29 Sep 2007 at 12:55 pm #
Working as an electrician in an industrial setting for 25-30 years, definitely taught me to differentiate between “Performance Goals & Outcome Goals”. With the Straw Boss breathing down your neck asking loudly and frequently, “when will you get this money making (money losing) equipment running again”? It’s all in the perception. Our ecommerence business is analagous to that industrial setting. It is a Performance Goal until it breaks down and then it is becomes an Outcome Goal.
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Lenise Page on 08 Oct 2007 at 5:38 am #
Goals - that is an important word in business whatever you decide upon.
Take small steps at first, then bigger ones as time goes on.
Get the preparation done and dusted, because that is very important, then you are ready to take the next steps.
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mike koubele on 06 Dec 2007 at 8:51 pm #
Nate,
When it comes to setting our goals it is one of the most important factors in succeding in anything that we do. And here again one should look at their goals regulary to see how their progressing on the things that they they have set for themselves. Also your article was a good reminder for me and it has let me know where I am at.
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Chris Durell on 22 Jan 2008 at 7:03 pm #
Great article. Really helps clarify the difference and how you set performance goals in the short term to achieve your outcome goals in the long term.
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Nancy on 10 Oct 2008 at 5:20 pm #
I agree with some of what you are saying. I don’t believe in luck, either or good or bad. I think attitude has a lot do with whether or not things happen. If you study with Bob Proctor or Joe Vitale, or any other people who were in the movie “The Secret” and you believe what they teach then all things are possible. You just have to do the work and create it for yourself. According to some of those gurus, when you set goals, you actually set limits on yourself as to what is actually possible for you to achieve. Just food for thought!
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