Setting SMART Goals
Businesses today are more focused on effective strategic planning and
goal setting than ever. At first glance, these processes might seem
straightforward. However, there’s so much more going on behind the
scenes. Companies dedicate a lot of time and resources to goal-based
strategic planning. After all, they determine the company’s future liquidity
and success. This post covers the concepts related to goal-setting and the
SMART criteria, their respective benefits, and instructions for writing
SMART goals.
1. What are SMART Goals?
1. SMART Goals Definition and Meaning
2. What Are The Benefits Of Setting SMART Goals?
2. How to Write SMART Goals?
1. Setting the Scope of a SMART Goal
2. Writing The Content Of A SMART Goal
3. S – Specific
4. M – Measurable
5. A – Achievable
6. R – Relevant
7. T – Time-Bound
3. A SMART Goals Template
4. Learn how to set SMART Goals
5. To Conclude
What are SMART Goals?
“Goal setting and task performance: 1969-1980” was the first study
to promote the importance of setting achievable yet challenging goals. It
found that 90% of people perform better with relevant and challenging
goals, translating to higher business efficiency and profits.
Over the years, management and marketing teams have devised different
alternatives for setting goals and enhancing workplace performance.
The SMART goals acronym eliminates generalization and guesswork, thus
setting the base for tracking progress and identifying missed deadlines.
When a business entity defines these five parameters, it essentially
ensures its team will attain the listed objectives within a predetermined
time frame.
What Are The Benefits Of Setting SMART Goals?
SMART is an effective tool with growing popularity. Businesses worldwide
incorporate the criteria for strategic planning and goal setting due to
the following benefits:
It gives a sense of direction in the short- and long-term
SMART helps teams create effective objectives
Focus on the most critical aspects / set the priorities straight
It’s motivating teams to get out of their comfort zones and take
action
Grants feelings of satisfaction when meeting deadlines
Facilitates time management
It’s time-saving due to goal-oriented activities
Provides a sense of being on the right track (measures progress)
It evaluates a team’s strengths and weaknesses
Identifies critical areas of operation that need to be improved
How to Write SMART Goals?
Setting the Scope of a SMART Goal
SMART goals can address a wide range of job responsibilities, most
commonly day-to-day job activities. Business entities primarily apply the
SMART criteria to direct their attention and resources towards the most
critical aspects of their operation, thus achieving their priorities.
SMART goals can cover different personal or business objectives, such as
increasing/decreasing, developing, making, improving, and saving
something (resource, expense, revenue, time, etc.).
Setting the scope of a SMART goal is a three-step process with the aim of
help meeting personal or business goals:
Defining the different job aspects, broad areas of responsibility, and
results for which the business entity (or an individual employee) is
held accountable
Developing a goal statement for each particular area of
responsibility, focusing on results, not the means to achieve them
Ensuring the scope of each goal is on a high level, enough to
encompass core outcomes, not particular tasks
Note: If a business has too many goals, it can indicate that they are
developed at a too low level and meeting the business goals can be
challenging in these situations. These goals are more task-oriented
instead of focusing on the broader picture and the result. A practical
solution to this problem is combining several statements into one, more
comprehensive goal.
“People work better when they know what the goal is and why. It is
important that people look forward to coming to work in the morning and
enjoy working”.
Elon Musk
Writing The Content Of A SMART Goal
A general goal has a lower chance of being accomplished compared to a
SMART goal.
An example of a general goal: “I will increase my profits this year“.
S – Specific
First, SMART goals are always specific, providing enough detail to
eliminate a general goal’s indecision.
An example of a specific goal: “The sales department will increase
my profits this year by increasing my marketing efforts in the
domestic market“.
Specific goals answer the famous “W” questions:
What the business wants to achieve / What steps need to be taken
(increase profits)
Where the process with be taking place (in the domestic market)
Who will take part in this process / Who is responsible (the sales
department)
Why is the entity pursuing this goal / Why is the goal important (to
earn more)
Which are the requirements, limits, obstacles, and so on
When, even though this usually translates to the time-bound
section (this year)
M – Measurable
A specific SMART goal is a solid base but worth almost nothing without the
proper metrics in place. Setting metrics to determine whether a business
will attain the goal and track progress makes the goal more tangible.
Usually, this translates to numbers or customer/employee satisfaction.
A measurable goal usually answers questions, such as the following:
How much resources/time/etc.
How many team members/days/etc.
How will we know when it’s done?
An example of a measurable goal: “The sales department will improve
my profits by 15% this year by increasing my marketing expenses
by 5% in the domestic market“.
Note: A business can easily measure these indicators since they are
expressed in numbers (revenues, expenses, profits) – these are
quantitative measurements.
However, a measurable goal can take another form: “The sales
department will improve my profits by 15% this year by
increasing customer satisfaction in the domestic market“.
The second refers to qualitative measurements that cannot be assessed
as easily. An entity, in this case, will need to think in terms of customer
feedback, testimonials, ratings, surveys, and so on. In the long term,
customer satisfaction translates to customer/brand loyalty and increased
profits. Still, these effects are difficult to quantify.
A – Achievable
Can the business improve profits by 15% in a single year? Is this the
reality of its niche (is it a fast-growing one, is there a demand for these
products/services)?
On the other hand, does the entity have the needed capital and resources
to increase expenses by 5%? Or will this decision harm its operation, in
debt the company in the long-term, or harm its market position?
These, and a range of other questions, should be considered. A business
might need to stretch its abilities, develop new skills, change attitudes, or
identify previously overlooked opportunities. Still, they should be able to
achieve the set goal promptly. If the goal turns out to be too optimistic,
the team might think of other, more viable alternatives.
R – Relevant
A single SMART goal statement should be consistent and make sense
within the broader image and business mission. All of an entity’s
departments should move in the same direction, or in other words, be
aligned.
A relevant SMART goal answers the following questions:
Does this idea seem worthwhile?
Is this goal aligned with the overall company’s direction
Are other departments willing to work towards achieving this goal?
T – Time-Bound
The time-bound element in the goal is “this year”, so that there’s no need
to expand the statement. Still, it would help to break down the deadline
into shorter milestones since a year is pretty broad. A better alternative
would be:
“The sales department will improve my profits by 3% this
month/quarter by … .“
A time-bound goal usually answers the following questions:
When is the deadline?
When is the first milestone, second, and so on?
What can the team do today to move closer to the deadline?
With a timeline, a business will rarely overlook the importance of a goal.
With the lack of it, the company can easily commit to day-to-day activities
or occurring crises and forget what should have been a priority in the first
place.
