The art of realistic targets
Setting targets is a bit of an art. For example, you want to set targets that inspire people to deliver exceptional performance. But you don't want to set targets so high that your direct reports assume they can't reach them—and so don't bother trying. In addition, you have to figure out what constitutes reasonable targets.
For instance, if you're aiming for a defect rate of 100 parts per million (PPM) in a process your group performs, but industry defect rates for a similar process currently range from 400 to 1,000 PPM, your target may be unrealistic.