Enabling your people to succeed as a manager or business owner is not only one of the rewards of true leadership but an essential contributor to company culture and business success. When people succeed more often their engagement levels also increase developing a winning feeling among your team.
There are so many examples where managers set goals and objectives which are so ambitious or poorly worded it would require an extraordinary amount of work, resources, guesswork, or knowledge which are not available to the person or team carrying out the work. Why would you set up your people and organization for failure?
How should we be writing goals and setting them so our staff and teams can achieve them and make the organization a successful one?
What are SMART goals and why are they important in goal setting
SMART goals are a framework used for setting objectives in a simple effective way that are Specific, Measurable, Achievable, Relevant, and Time-bound. Their intention is to provide guidance and direction to staff and teams on what needs to be achieved without ambiguity.
This framework was described by George T. Doran, who introduced the concept in a 1981 article titled “There’s a S.M.A.R.T. way to write management’s goals and objectives. This original article laid the foundation for what has become a widely used approach to goal setting in both personal and professional environments.
Here’s what each component of the SMART acronym means in more detail:
Specific: Goals should be clear and easy to understand, concise, and well-defined. They should answer the questions: What do you want to accomplish? Why is it important? Who is involved? Where will it happen? What are the constraints?
Measurable: Goals should include criteria for measuring progress and success. This also must be clear on the units or how the performance will be measured versus the objective. They answer the questions: How much? How many? How will I know when it is accomplished?
Achievable or Attainable: Goals should be realistic and attainable given available knowledge, resources, time, and constraints. They should stretch individuals or teams to improve performance but remain within the realm of possibility and ability to achieve.
Relevant: Goals should be aligned with organizational, company or department objectives and contribute to organizational success. They answer the question: Does this goal matter? Is it worthwhile for our organization?
Time-bound: Goals should have a specific timeframe or deadline for completion. This helps create a sense of urgency and accountability. They answer the question: When will it be completed or achieved?
Why are they important for business success
In a highly competitive business world it is more important than ever to provide clear and well defined direction on what needs to be achieved to keep the business ahead of the competition and profitable.
In using the framework of SMART goals everyone understands what needs to be achieved and why it matters clearly and with little doubt. Individuals and teams can prioritize tasks and activities that directly contribute to goal attainment, avoiding distractions and wasted effort. They also support success by creating accountability in establishing clear expectations and deadlines. When goals are specific and measurable, it’s easier to assess performance and hold individuals or teams accountable for results.
Incorrectly written SMART goals examples
Example 1: We will be the best supplier to the café industry
The goal is very broad and non-specific. Best supplier in which or what way? Also what geographic area would be covered. No indication of relevance is given to the overall organizations objectives as well as how to gauge the achievement of this goal. There is no indication if this is realistic and achievable.
Example 2: Achieve a good sales volume of cars compared to last year
This goal is also broad, although some degree of measure is present, comparing to last year sales volumes, it still provides some ambiguity on which car model and what is the measure of good? Is good 20% or 30% more sales than last year? Is the goal realistic given current market conditions? One assumes the time period is specific to a year but this can be an assumption.
Well written SMART goals examples
Example 1: To become the market leader in supplying coffee beans in California, we aim to be the first-choice supplier of coffee beans to 60% of all cafes and restaurants
This goal is more specific and defined. It defines that the supplier will supply coffee beans in a specific geography: California. Also, its specific in the desired market share to achieve, 60% of all cafes and restaurants as the first-choice supplier. The goal seems to be realistic as supplying all cafes and restaurants would be an unrealistic expectation in such a diverse and fragmented industry.
Example 2: Achieve at least 90% of the budgeted sales units of cars in the SUV segment for this financial year
This goal is clearer, and has reference to a budget, which normally would be derived with actual sales and market data. The type of car and segment is defined. The goal is measurable as the units of cars sold and realistic in the sense that at least 90 % of the budgeted cars sold must be achieved.
Don’t forget the right factors for success
Ensuring business success is not an easy task for any business owner or manager, but it is often made easier when the organization has clearly defined, measurable realistic targets and objectives. Each department and individuals should have goals that are aligned to these organizational goals.
The key is not only to set SMART goals but to engage staff and provide the following alongside these:
1) The correct tools and resources to get the job done in full and on time
2) The right knowledge required to complete the task or objective
3) The right positive motivation to succeed
These three factors are key for any individual or team to successfully complete a task or goal. When defined correctly using the SMART framework, goal achievement is much higher and road to success a much easier one for individuals, teams, and organizations.
A copy of the original article by George T. Doran can be found here
