A Way to Know If Your Corporate Goals Are Too Aggressive [Archive.org URL]

For better goal-setting, it will help to understand where financial targets typically come from. Often, they’re based on past performance. But a company’s recent track record says nothing about how much its performance could or should improve; what’s needed is a useful assessment of a company’s probability of future success. One way to think about the likelihood of hitting a given performance increase is to consider how frequently other companies have made similar improvements.

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