---
title: "Why is managing by goals more important today than ever before? · Sunergos"
description: "Managing by goals has been talked about for a long time, but many leaders still don’t apply it day to day. As a great many companies have had to switch to remote work because of the virus, the test question for…"
url: https://www.sunergos.ee/en/blog/why-managing-by-goals-matters-more-than-ever/
language: en
---

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Article · Leadership

# Why is managing by goals more important today than ever before?

Maarika Lember

27 January 2021 · 4 min read

Contents

1.  01Managing by goals and remote work
2.  02Test your thought patterns
3.  03The needs of generations
4.  04The foundations of intrinsic motivation
5.  05In summary

FemaleMale

Managing by goals has been talked about for a long time, but many leaders still don’t apply it day to day. As a great many companies have had to switch to remote work because of the virus, the test question for leaders with this experience is: “How painless was the switch to managing remote work for you?” If you feel the switch was rather smooth, you most likely manage by goals. If the switch was rather hard and it is more difficult to ensure results in remote work, you probably have room to grow in this area.

## Managing by goals and remote work

Remote work has made it very hard to exercise constant control in the traditional way – people are constantly in sight, it is easy to notice their mood, actions and so on, and to draw conclusions from them. Communication also no longer happens by itself – as people aren’t in the same room, you have to take clear steps yourself to make contact.

Managing by goals means switching from delegating work and tasks to setting clear goals and delegating responsibility. You also need to put in place a process for how the employee and leader can best follow progress towards the goals – how often, in what form, with which metrics. In addition, you need to trust, which is made possible by having good contact with the employee – regular conversations on “How is work going?” and “How are you doing as a person?”

## Test your thought patterns

Just like managing remote work, managing by goals requires letting go of quite a few common limiting beliefs – at home people don’t contribute enough; I can’t adequately assess a person’s workload and effort; if a person isn’t in the office, I can’t reach them quickly enough, and so on. If you assume such things, they will also happen. We deal with these challenges differently depending on whether it is our belief or whether we take it as a problem that has come up and needs dealing with. In the first case, we don’t even believe it can be changed; we give up rather easily and state the fact that “that’s just how it is”. In the second case, we focus, look into the background and find the best solution together with the employee.

## The needs of generations

The need to manage by goals became clear when the first representatives of Generation Y arrived on the labour market (today they already make up 70% of the workforce). Generation Y (born 1982–1995) needs meaningful work, the opportunity to develop continuously, a caring relationship with their leader and ongoing conversations. Today representatives of Generation Z (born 1996–2010) are also entering the labour market; their needs are very similar, but even more driven by interest and excitement. While Generation Y values flexibility and independence a little more, the younger ones value involvement more, and the chance to express their opinion and influence results with it. Both Generation Y and Z are very receptive to managing by goals when it is done meaningfully and inclusively.

## The foundations of intrinsic motivation

According to self-determination theory, known in psychology, people, regardless of generation, have three basic psychological needs on which their motivation, wellbeing and self-confidence depend. These are competence, autonomy and relatedness. When these needs are met, a person can focus on any interesting and meaningful activity.

-   **Competence** – the subjective feeling that I matter and can cope, as a result of which a person acts effectively and with initiative and influences their environment in a suitable way. A leader can create a sense of competence by noticing the employee, listening to and valuing their opinions, offering challenges that match their strengths and giving relevant feedback regularly. The leader’s attitude “I want to help you succeed” helps.
-   **Autonomy** – the need to have control over one’s choices and decisions and to feel independent. The much-discussed flexibility in the time, place and way of working helps meet precisely this need. The employee interprets it as trust and as being valued as an individual, which in turn psychologically creates a situation where the employee feels an inner pressure to respond to the employer in kind. In the process of setting goals and drawing up an action plan, it makes sense for the leader to take a supporting role and help the employee themselves put into words the goals, metrics and action plan through relevant questions.
-   **Relatedness** – the need to be part of something bigger, to feel connection and belonging. This feeling arises when the employee is asked for their opinion and it is seriously considered, when the employee’s values match the values of the team or organisation, when there is a trusting atmosphere between colleagues and feedback is given to each other, when people dare to ask for help and are ready to offer it themselves. The leader’s role is to create opportunities and conditions for communicating with each other; to watch and notice that everyone’s voice is heard; to ensure transparent, fair and needs-based treatment for everyone; and, when needed, to raise uncomfortable topics and talk about them openly.

## In summary

**Clarity of goals and metrics** gives the employee confidence about what needs to be achieved and by when – they can independently make choices and decisions for creating or, if needed, changing the action plan.

If the **wider context** has also been discussed when agreeing on goals – what value achieving the goal creates and how it relates to the employee’s values and ambitions – the employee’s interest and motivation to make an effort for these goals is ensured.

**Regular meetings and the leader’s interest, support and feedback** along the way ensure consistency and effectiveness – even more than originally agreed can be achieved.

We have gathered know-how on setting goals, holding goal-setting conversations and monitoring the achievement of goals into one compact e-course (in Estonian). If you want to watch a sample lesson from the course, [**click here**](https://koolitus.sunergos.ee/lessons/eesmarkide-kaudu-tahenduse-loomine/).

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