To enable performance improvement, what must performance objectives be traceable to?

Performance objectives must be traceable to business objectives because these objectives serve as the foundation for an organization’s strategy and direction. When performance objectives are aligned with business objectives, it ensures that all teams and departments are working towards the same overarching goals of the organization. This alignment is critical as it helps establish clear priorities, fosters collaboration, and motivates employees by showing them how their work contributes to the wider success of the company.

Linking performance objectives to business objectives allows for better measurement of progress and effectiveness, making it easier to identify areas for improvement and to allocate resources accordingly. This relationship ensures that performance evaluation is meaningful and anchored in the organization’s strategic intent, ultimately driving performance improvement across the business.

While department goals and other options may provide useful context, they do not encompass the broader alignment that business objectives offer, which are essential for cohesive performance improvement efforts across the organization.