LAST UPDATED Nov 06, 2024
As November rolls around, companies are deep into planning for the upcoming year. Financial targets, strategic growth initiatives, and reflections on the successes and challenges of the current year all come into focus. At ThreatX, our goal-setting process is designed to be simple, effective, and aligned with our strategic direction—something we call the 3+1 approach.
What is the 3+1 Approach?
The 3+1 framework at ThreatX involves setting three core goals and one stretch goal. Here’s how it works:
- Three Core Goals: These are the primary objectives for the year or quarter, representing the essential focus areas that align with our company’s strategic direction.
- One Stretch Goal: This is an ambitious goal that challenges us to go beyond our comfort zone—something that might seem just out of reach but inspires us to push further.
How the Process Works
Before the start of the year, our leadership team determines the company-wide 3+1 goals. Once these are established, we break them down further:
- Annual and Quarterly 3+1 Goals: We set the 3+1 goals for the entire year and for Q1, providing a clear roadmap for where we want to go.
- Executive Goals: Each executive then establishes their own 3+1 goals, ensuring they align with the overall company goals.
- Cascade to Managers and Teams: Executives share their goals with managers, who then create their own 3+1, and this process continues down to individual contributors.
We compile all these goals into a PowerPoint deck, making each team member’s 3+1 goals visible to everyone in the company. This transparency fosters alignment, accountability, and a shared understanding of our organizational priorities.
Why We Chose 3+1 Over Other Methods
The simplicity of the 3+1 approach is what makes it work so well for us. While methodologies like OKRs (Objectives and Key Results) can be effective—Google famously implemented OKRs when they were still a small company—we found that OKRs could be too cumbersome for a company of our size. With 3+1, we focus on what matters most without getting bogged down in complexity.
Driving the Process
For any goal-setting process to succeed, it needs ownership. At ThreatX, our CFO takes on this role, ensuring that the process is driven forward and doesn’t fade away after a few quarters. Having someone at the helm ensures that everyone remains engaged, goals are reviewed, and the process continues to deliver value throughout the year.
A Key Decision: Goals and Compensation
An essential aspect of our approach is that we do not tie compensation directly to achieving these goals. We believe that while goals should motivate and guide our efforts, linking them to compensation can encourage people to choose easier, safer objectives just to secure their bonuses. By removing this pressure, we foster a culture where individuals are more likely to set ambitious goals, take calculated risks, and focus on growth rather than just hitting a target.
Looking Ahead
As we look to the new year, our 3+1 process will guide us, helping each team member see how their efforts align with ThreatX’s vision and strategy. It’s a straightforward approach that has made a significant difference for our organization, allowing us to stay focused and aligned as we pursue our ambitious goals.
If you have any questions on how to implement this at your company, drop me a message. All the best to everyone in finishing out 2024 and having an even better 2025.
