Understanding the relative priority of all assigned goals is important to help associates determine what goal to work on whenever conflict between one or more goals exists. The relative priority for all goals in V2R is expressed as a percentage weight. A goal with a higher weight should have a higher priority.

Properly defining and assigning the right goals to the right associates is a huge challenge for all organizations. Determining each goal's relative priority and assigning the proper weight is much easier to do, especially when the Return On Investment (ROI) method is used.

Goal ROI
We previously suggested that the V2R process should be started by working on the highest priority project goal first that supports the organization's strategy. Hopefully the organization has a well defined strategy and there are only a few identified projects that can generate the greatest potential return. The one project that has the greatest potential strategic return with the smallest projected investment should be selected first. We refer to this as the Goal's ROI.

Most organizations believe that effort is GOOD. In the V2R world effort is considered an investment in a goal. Goal investments are reflected in the denominator of the Goal ROI formula. This makes the investment of effort in projects BAD because it lowers the projected Goal ROI. Think about two projects with the same projected return. The project that requires the least investment in effort or other resources should have the highest priority.

A project goal's potential ROI should be used to assign the proper goal weight. The V2R application uses either a Fixed Weight or an Importance factor to assign goal weights as described below.

Fixed Weight
The Fixed Weight is the V2R default option for defining the relative importance of a goal. Fixed Weight is defined as a percentage weight that is assigned to a goal. The Fixed Weight goals will always possess the same fixed weight percentage regardless of the weights assigned to all other goals.

The biggest problem with only Fixed Weight goals is that as other goals are added or deleted, the relative Fixed Weight of all previously weighted goals changes. In reality, Fixed Weight goals really do not have fixed weights.

Importance Factor
The Importance Factor is the other method for assigning weight to goals in V2R. In all cases the Importance Factor is translated into a specific goal weight so the relative priority of all goals is easy to determine. Using the Importance Factor reduces or eliminates the need to re-assign goal weights every time a new goal is added, deleted or changed on an Associate's Goal Card.

The Importance Factor uses a formula to determine the relative weight for goals. The formula subtracts the sum of all Fixed Weighted goals from 100%. The remaining or unassigned goal weight is then pro-rated over all goals that are assigned an Importance Factor.

The Importance Factor assigned can range from 1 to 5. Goals with an Importance Factor of 5 will have 5 times as much weight assigned to them as goals with an Importance Factor of 1.

Adding, deleting or changing goals with Fixed Weights or Importance Factors will automatically cause all previously assigned goals with Importance Factors to have their percentage weight recalculated.

Goal Materiality
In the bean counters world 5% has always been considered the lower limit for defining materiality. In the real world there is an initial tendency to assign too many goals. This is especially true for metric goals.

Limiting the minimum goal weight to 5% in V2R helps to limit the number of goals assigned (by definition 20 goals x 5% equals 100%). Combining immaterial goals (<5% weight) is an acceptable method for increasing every goal's weight above the 5% minimum.

Less Is More
Just like "simple solutions are always better", so are fewer assigned goals. Minimizing the number of assigned goals helps eliminate excuses and increases focus and accountability on those fewer goals that are assigned. Completing a goal each month is much more effective and efficient than finally completing 12 goals at the end of a year. Completion of the first goal at the end of the first month boosts morale and starts to generate a return that can be used to fund the completion of the other goals.

Associates like any other resource are only capable of generating so much output. Assigning more work than an associate is capable of producing will increase the lead-time required to complete all excess assignments. Overloaded associates will also have a more difficult time deciding which assignment to work on next. Assigning to much work can also have a negative impact on quality (i.e. rushing to complete an assignment), on delivery (i.e. being late) and on cost (i.e. overtime and expediting).