Chapter 03 · Reporting & strategyStrategy, Targets & Performance Management
Target setting
Definition
Target setting is the process of defining measurable objectives, boundaries, baselines and timeframes for desired performance or change.
References
This reference provides supporting context for how “Target setting” is defined and used.
Overview
What it means in practice
Target setting should be read as a strategy and performance-management term. Its meaning depends on the objective, boundary, baseline, owner, timeframe and evidence used to assess progress.
In practice, users should connect target setting to a specific decision, metric, plan or governance process. That keeps the term concrete enough to guide action and review.
Why it matters
Target setting matters because strategy language can shape priorities, budgets, accountability and external claims. Clear wording helps readers see whether the term describes intent, action, measurement or demonstrated performance.
Common misconception
A common error is to use Target setting as a label for ambition without showing the scope, metric, owner or review process. That can make progress appear more settled than it is.
Review questions
What objective or decision does the term support? Who owns it? What boundary, metric, evidence and timeframe would let a reviewer judge whether it is working?
How it is used
The term appears in strategy, target-setting, sustainability reporting, performance reviews and external communications, where boards, executives, reporting teams, auditors and stakeholders use it to classify, assess or communicate the process of defining measurable objectives, boundaries, baselines and timeframes for desired performance or change.
Its correct use depends on the reporting framework, organisational boundary, baseline, timeframe, metric and governance process.