What are SMART goals?
Anyone can set a goal, which is an achievement to work towards. Employers may set goals to create a more successful and profitable business, such as increasing turnover or doubling output to improve net income.
SMART goals have details and parameters designed to increase the likelihood of achieving them. SMART is an acronym for the words Specific, Measurable, Achievable, Relevant and Timely. Each element is considered or incorporated when devising the goal. SMART goals are specific, rather than vague; their outcomes are measurable; they can realistically be achieved; they are relevant to the business or the environment in which it operates; and have a timeline or deadline applied to them.
The SMART goal principle was first published in the 1980s by business consultant Dr George Doran in the Journal of Management Review. His paper, There’s a SMART Way to Write Management’s Goals and Objectives, outlined the method and how it can be beneficial in achieving goals. It works by holding the goal-setter accountable for achieving the goal while helping them stay focused.
How to devise a SMART goal?
When developing your goal, consider each letter of the acronym one by one.
Be specific
Being specific helps you achieve a goal as it spells out, in detail, exactly what you want to achieve. It may also draft how you plan to do it.
You may first like to note your broader goal, then consider how to make it more specific. For example, if your goal is to increase turnover, consider what that means to your business. How much do you want turnover to rise, such as 20%, 50% or 100%? Will all departments or areas be required to increase turnover or only some?
It may also pay to consider the drivers behind setting the goal when being specific. The amount by which you increase turnover may be different if your goal is to grow your business, or if you simply want to cover increased business costs.
Being specific may also include outlining the steps to achieve this goal. For example, if you would like to double output, you may need to consider implementing extra shifts or expanding your factory, so add this to your goal.
Set measures
Setting out the measure of success will help you to realise whether you have achieved the goal.
Most goals can be measured, although it may be easier to determine these targets for financial goals rather than non-financial. If your goal is to increase turnover, it may be clear to see if it is on track or has been achieved by looking at your financial accounts. However, if your goal is to improve well-being and morale in your workplace, you may need to start conducting staff satisfaction surveys and analysing the results or comparing absentee rates year-on-year.
Make them achievable
Once you have determined the specifics and measures for the goal, consider if it is achievable. For example, a goal for turnover to reach $1 million annually, may be more easily achievable for some businesses than others. It may be worthwhile to set a lower turnover target for companies that may not be able to meet this goal.
Failing goals may lead to a range of negative side effects, from low morale to a loss of motivation to pursue other goals in the future. But success can be a powerful motivator that makes you believe and makes your team work harder to reach the next goal. Therefore, setting achievable goals, even if they are small achievements, is much more beneficial than aiming high for something unlikely to be possible.
Determine relevancy
Your goal may be useful to the business and achievable, but consider if it is relevant to your operations or the environment in which you work. If your goal is not relevant, there is a decreased chance that it will succeed or achieve the outcomes you hope for.
For example, you may decide implementing an app may be useful to increase sales online. However, your customers may prefer to buy in person or your business may be too small for the cost of developing and maintaining the app to offset the increase in revenue. A more relevant goal to your situation may be to enhance your website’s capability for customers to purchase online.
Set a timeline
Outlining a deadline or timeline for the goal to be achieved can increase the chance that the goal is worked on. Consider how much easier it can be to delay or procrastinate when a task does not have a deadline. Setting a timeframe will keep you and your employees on track, enabling you to check in regularly on progress and adapt tasks to suit if required.
The timeline may depend on how long it may take to complete the tasks to achieve the goal and can be as short or as long as you require. For example, you may decide to increase turnover by a percentage within one year, two years or five years. Or, if you are doubling output, the timeline may be determined by how long it takes for the equipment to arrive that will enable you to do so.
When working towards your goal, if you find your initial timeline will not be met, you may find changing the deadline will not affect your overall success. However, consider setting a new deadline to ensure the goal remains on track.
Challenges when using the SMART method
Unforeseen problems and difficulty including all five elements when using the SMART method are two challenges that can be easily overcome.
Tackling unforeseen problems
Keep in mind that unforeseen issues may impact the success of a SMART goal element. Whether it is a delay in receiving new equipment from a supplier or a global pandemic, there are many challenges that can occur that are out of your control and may hinder or prevent your success.
However, SMART goals are flexible and can be tweaked to suit any concerns that do arise. You can adjust the timeline and how success is measured, or even cancel the goal if you find it is no longer relevant. SMART is a method to increase success, not a hard-and-fast rule.
Tackling all five elements
It is important to consider that you do not have to incorporate all five elements of SMART when devising your goal. While it can help increase the chance of success, some elements may not apply to your goal, or you may determine they are not essential to achieving it.
For example, if you run a family business and your goal is to ensure your business is profitable when you hand it over to the next generation, there may not be an exact date set for this to happen. However, you can still set specific, measurable and achievable elements for this goal.
The SMART process of developing goals is straightforward, but it can take a little time to get used to planning a goal in such an in-depth way. Any goal, whether a small task or a lofty ambition, can be formulated into a SMART goal using this process. Set a goal to apply SMART techniques when devising any goal, and you will experience the benefits of doing so.
Read more: How Discovering the Purpose of Your Business can Supercharge Your Organisation
