Other targets may be concerned with quality, or how good the results of programs are expected to be. Targets relating to efficiency or producing outcomes at least cost, typically relate to unit cost measures. Disaggregating targets for people-level indicators clarifies the specific customer groups for which benefits are intended. Reengineering requires all operating units in their strategic plans to establish performance targets for all performance indicators used to measure progress towards each strategic objective and intermediate result. Beyond this formal requirement, performance targets are important for several reasons.
Targets bring the purpose for undertaking a program into sharp focus.
Targets orient stakeholders to the tasks to be accom- plished and motivate individuals involved in a program to do their best to ensure the targets are met. Once a program is underway, they serve as the guideposts for judging whether progress is being made on schedule and at the levels originally envisioned. A natural tension exists between the need for setting realistic targets and the value, from a motivational perspective, of setting targets high enough to ensure that staff and stakeholders will stretch to meet them. When motivated, people can often achieve more than they imagine. At the same time, realistic targets build confidence about an operating unit's ability to plan and perform.