Performance standards set the bar for team and individual achievement, and form the basis for appraising employee and unit performance.

Collaboration is an often overlooked element in setting expectations. Some business leaders believe that employee involvement will lead to diffuse or lesser expectations, but research has shown that employees are often the experts when it comes to understanding and setting both high and realistic expectations. A collaborative performance plan will have a much higher chance of success in directing employee efforts to achieve specific results. The effective setting of standards will support organizational growth as well as employee professional growth.