A real estate broker hands you a set of keys. As you open the door to your new house you think to yourself, “I am going to transform this into a Sicilian palazzo.” This is an ambitious goal. Remaking a suburban ranch house into a Sicilian palazzo takes a lot of work. You’re no stranger to project management so, before you start, you use a strategic goal-setting process to break the project down into manageable, achievable components and give yourself a target date to help track your progress.
By identifying specific tasks and setting deadlines, you transform a large, abstract goal into manageable action items. This is similar to the approach that businesses take when setting SMART goals.
What are SMART goals?
SMART is an acronym that outlines a process for effective goal setting. The SMART goal system focuses on making goals realistic, clear, and logical. Each letter in the SMART acronym stands for a step in the process that makes these goals achievable:
- S: Specific
- M: Measurable
- A: Attainable
- R: Relevant
- T: Time-bound
Individuals, team leaders, and decision-makers may use the SMART system to write goals for themselves or their teams. The SMART goal framework can help you set professional goals or personal goals for your career development, hobbies, or even your personal life.
How to write SMART goals
The process of setting SMART goals starts with your business’s mission and objectives. Then, break your broad objectives into smaller, manageable goals. Use the SMART criteria to specify the details of each objective. You can use a SMART goals template found online or develop one in a spreadsheet. Each goal should be:
- Specific. A specific goal is clear and actionable. For example, setting a goal to improve your company’s social media presence is not specific enough to guide your team. To make this goal specific, you could narrow your focus: Improve engagement on Instagram.
- Measurable. Measurable goals include a specific metric to track. The example used above (improve engagement on Instagram) doesn’t meet this criteria. You could amend it as follows: Increase engagement on Instagram by 10%. This makes the goal measurable.
- Attainable. This means setting realistic targets. For example, after reviewing industry data, you might get a reality check and learn that the average engagement rate for Instagram accounts makes a 10% increase unrealistic. To set an attainable goal, you adjust your goal to: Increase Instagram engagement by 5%.
- Relevant. Relevant goals support your company’s long-term goals and overall mission. To make a goal relevant, ensure that it clearly connects to your broader business objectives. For instance, the goal of increasing Instagram engagement could help develop new customer leads that result in increased revenue.
- Time-bound. Time-bound goals have a clear deadline. A defined time frame can motivate your team and help set a schedule for your project. At the end of the period, your team will have a clear opportunity to look back and evaluate its success. To make the Instagram engagement objective a SMART goal, it needs a time constraint, such as “Increase engagement on Instagram by 5% by the end of Q4.”
Pros and cons of SMART goals
The SMART structure is a practical, methodical approach to setting goals. It helps create clear objectives to support a company’s mission. Some critics, however, argue that the acronym oversimplifies. These are some of pros and cons of SMART objectives:
Pros
SMART goals can be:
- Easy to understand. SMART goals have clearly defined objectives and timing. They make it easy for employees and team leaders to understand what’s expected of them.
- Focused. SMARTgoals are directly connected to your business objectives. Clear goals can get everyone on the same page and provide your team with insight into the company’s overall direction.
- Easy to track. A SMART goal is measurable. It’s easy for team members and leaders to evaluate their progress and make sure they’re on track. At the end of the time period, each person on your team can see which goals were accomplished and which fell short.
Cons
On the other hand, critics of SMART goals argue they often are:
- Inflexible. Company goals can change, especially if there is a market shift or change in tastes, or if a new technology arrives. If your company needs to pivot, your SMART goals may become irrelevant.
- Time-consuming. The SMART framework is multifaceted. Developing these goals and making sure that they meet all the SMART criteria may take longer than you anticipated, taking time away from other important projects.
- Unrealistic. If your SMART goals are overly ambitious and never achieved, it can discourage team members.This can lead to a demoralized workforce that’s afraid to try new things, learn new skills, or push boundaries.
Next steps after writing SMART goals
After you’ve set your SMART objectives, think about how your team will achieve the goals and what team members need to cross the finish line.
1. Make an action plan
Determine which teams or team members are responsible for each SMART goal. Work with team leaders to brainstorm actionable steps and develop specific tasks to move toward your goal. Good communication skills can ensure that all team members understand their responsibilities and how they relate to a SMART goal.
2. Obtain resources
Consider the tools, skills, staff, and other support your team will need. Check-in with team leaders to confirm that they have the necessary resources to achieve their SMART goals.
3. Track progress
You don’t need to wait until the end of the target time frame to measure progress. If you regularly check performance, you can identify any SMART goals that are behind schedule. Consider holding teams accountable for tracking by asking leaders to deliver regular progress reports.
4. Evaluate
After the specified time frame is up, check the results. Compare your actual performance to your expected performance, taking note of any wins or misses.
5. Reassess
What can you learn from your team’s performance? If you accomplished all of your SMART goals, consider setting your sights higher with a revised set of SMART goals. If you fell short of some goals, identify what caused the miss. You may decide to fine-tune your business strategy or to set more achievable goalsmoving forward.
6. Begin again
Take what you learned from this round of goal-setting and build on it. Consider creating a new batch of SMART goals that reflect the current status of your company.
SMART goals FAQ
What is an example of a SMART goal?
For an experienced runner, an example of a SMART goal may be to complete the New York City Half Marathon in less than two hours. Choosing a specific race and target finishing time makes this SMART goal specific, measurable, and time-bound. For an experienced runner, this may be a relevant goal that’s also achievable.
Can you apply SMART goals to business?
Yes. SMART goal setting is a way for businesses to define and measure success. Determining and setting specific, measurable, and achievable goals can help companies track their progress and choose the best way to achieve them.
What is missing from SMART goals?
The SMART goal system can help companies set achievable goals. However, it has been criticized for failing to address accountability and for discouraging risk taking.