Cost Improvement Targets must excite the imagination and commitment of the organization. They should not only require the commitment of everyone, but also their participation, in order to be achieved. Targets need to be challenging and ambitious driving towards a common organizational goal.
Insubstantial or low targets will not be received enthusiastically, and tend to coast along without any sense of urgency. Targets based on measures which are known and considered to be “a done deal” or “low hanging fruit” bring limited short term satisfaction and definitely do not represent realistic planning for the business.
Alternatively, targets should and must be realistic and achievable. Everyone likes to aim high, with a fair chance of success. Targets considered to be unachievable will not stimulate the employees, and even dampen their enthusiasm, leading to a high likelihood of failure. Again the needs of the business will not be met.
In conclusion, it is important to set ambitious and achievable targets, focused on the areas of need and always remembering that targets must be communicated effectively. The communication should be both positive and imaginative and everyone should understand his or her role in the activities. It is very important to remain upbeat and to avoid creating any sense of resignation (i.e. here-we-go-again) or insecurity.