Performance Goals vs. Outcome Goals
May 5th, 2007 | By Nate Moller | Category: Goal Setting, Sales & MarketingPerformance 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?
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”.
[Reply]
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.
[Reply]
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.
[Reply]
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.
[Reply]
Nate Moller Reply:
October 15th, 2008 at 2:07 am
Hey Adnan,
How are your performance goals coming? I see you’ve had lots of traffic to your blog posts - is this something you’re continuing to work on and promote?
How are sales? What specific things are you doing to see more traffic and conversion?
Keep me posted! I look forward to hearing from you.
[Reply]
Great Article Thanks Nate!
[Reply]
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.
[Reply]
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.
[Reply]
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
[Reply]
Nate Moller Reply:
October 15th, 2008 at 1:58 am
Thanks for the comment Janet. How are your “small unglamorous steps” coming? As I tell every client I work with, “Small Success leads to Big Succes!”
I’d love to hear some updates on how you’ve applied this advice about performance goals.
[Reply]
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
[Reply]
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.
[Reply]
Nate Moller Reply:
October 15th, 2008 at 1:56 am
Hello Linda,
I see you’re making changes on your site. What’s been happening? How are things going? How are your performance goals helping you see the results you are hoping for?
Keep me posted!
[Reply]
Thinking of ‘goals’ as a ‘to do list’ makes it a little easier for me to wrap my head around !!
[Reply]
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.
[Reply]
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
[Reply]
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.
[Reply]
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.
[Reply]
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.
[Reply]
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.
[Reply]
Nate Moller Reply:
October 15th, 2008 at 1:53 am
What’s been happening Mike? Have you been keeping up to date on your goals? I’d love to hear about our success.
[Reply]
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.
[Reply]
Nate Moller Reply:
October 15th, 2008 at 1:52 am
How are your performance goals coming Chris? I’d love to hear some updates.
[Reply]
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!
[Reply]
Nate Moller Reply:
October 15th, 2008 at 1:51 am
Thanks for the comment although I’m not sure I completely understand - so are goals important to the success of a business or are they not?
In my opinion and based on my experience, a company HAS to have objectives, a plan, GOALS, in order to get where they want to go. “A goal unwritten is only a wish.”
However, just setting “outcome goals” without a “how to” that specifically plans out what you are to do on a day to day basis to achieve the outcome won’t work either.
I agree, attitude is a key component - but without a plan and specific performance goals, the small success will never become big success. I’d be interested to hear more from you Nancy (and others).
[Reply]
I believe somewhere you said you are a big believer in setting goals. Could it be that it is the belief in setting goals that creates your outcome and not the goal itself? I was listening to a cd by Jack Zufelt who stated that if writing goals worked for everyone, then everyone who ever wrote down goals would have achieved all those goals, but many haven’t. I think that there is more to it than just writing down goals and having a plan.
You have to be motivated, you have to have confidence that what you are writing down will happen, you have to have confidence in your own ability. It really helps if it is your passion.
For example, I could write down as a goal, I am going to be a doctor. I could write a detailed plan of how to make that happen, how I will get into premed and medical school, how to pay for the schooling, how to support myself in the process. Does that mean I will ever be a doctor just because I wrote it down and had a detailed plan. Of course not! Even when people write down goals they start putting up their own roadblocks. In the example above if I started thinking I am not smart enough to be a doctor, or I can never pull that off, or I could never funding needed, or, or, or….. then I am creating blocks that wil never get those goals off the ground.
In my opinion believing in yourself and what you are doing is key. Like I said in my last post…just food for thought. There are always 2 sides to every coin. What works for one, may not work for others. We all different. We all process information different, we all have our own beliefs. Again…just food for thought!
[Reply]