In order to enable performance improvement, what must performance objectives be traceable to?

Performance objectives must be traceable to business objectives because this alignment ensures that the goals set for performance are directly linked to the broader strategic aims of the organization. When performance objectives are derived from business objectives, it creates a clear pathway for how improving performance in specific areas will contribute to the overall success and growth of the business.

This approach allows for targeted measurement and evaluation of performance in a way that serves the organization's mission and vision. Additionally, it helps in prioritizing initiatives and assigning resources efficiently, ensuring that efforts focus on what is most critical for the business’s success.

While organizational policies, market research, and employee performance can all play important roles in shaping performance objectives, they do not provide the direct strategic alignment that stems from having clearly defined business objectives. Hence, tracing performance objectives back to business objectives establishes a foundation for effective performance improvement initiatives and helps in driving meaningful changes that resonate throughout the organization.