If you want to have your own business, create a product or get more clients, it is not enough to aim for the highest, you have to build a path to reach that aspiration. The key to materialize it and have clarity in the process is in the SMART objectives. If you don’t know how to define them, keep reading to know the best examples.
Would you like to grow your business? Getting your scope right? Create an efficient and proactive work team? These are just some of the qualities that a company has when all areas -and the people who work in them- are capable of aligning their objectives.
Now, it’s not enough to just work on a . On the contrary, before taking the first step, it is essential to define those objectives that will not only guide your company, but will help you specify the appropriate ones to achieve each of them.
We invite you to continue reading this article in which we are going to explain what SMART objectives are, how to define them for your company and be able to make great use of them.
What are SMART goals
The SMART methodology refers to the 5 characteristics with which an objective defined within each must meet. The purpose of this process is to analyze and establish criteria when creating goals to obtain better results.
For example, SMART goals are essential for managing projects, evaluating employee performance, and analyzing personal development in a systematic way.
The terms “SMART Objectives” or “SMART Goals” are often used in companies, however, they have differences. On the one hand, objectives are the concrete steps that will direct the goals of a project. While goals are the specific purpose of a task or assignment.
What does the acronym SMART stand for?
Although it is known by its acronym in English, SMART, in Spanish these business objectives can be translated as “intelligent objectives”.
Author George T. Doran first defined these acronyms in 1981, publishing an article called “There’s a SMART Way to Write Management’s Goals and Objectives.” ).
Thanks to its methodology, it is possible to have the clarity required to achieve everything that is established within an organization. From what, to how to measure or how long it will take to achieve these goals.
Now let’s see the meaning of each letter of the acronym:
- specific
- Measurable (measurable)
- achievable (attainable)
- realistic
- Timely (temporary)
Specific or specific
Here reference is made to the fact that the objective must be described in the most concrete and detailed way possible. For a technology business, for example, it could be: “increase the sale of 200 accessories or equipment per month to 300 in 2 months”.
This goal is specific because it describes exactly what the company hopes to accomplish in a given time frame.
measurable or measurable
It is necessary that the objective can be quantifiable in some way. The reason why it should be measurable is because it would be difficult to interpret the stated result if it didn’t have a number, a range, or a metric to compare it to.
Generally, spreadsheets or data visualization platforms are used to carry out this process. At this point, I have in mind the following reflection:
“What is not defined cannot be measured. What is not measured can not be improved. What is not improved, is always degraded.
William T Kelvin
achievable or achievable
Although it is important to define ambitious goals, it is also important that they are achievable. Based on the previous example, and to set the sale of 300 products, the first thing that should have been done was , and trends, among many other factors that indicate that this new goal is feasible.
Realistic or lifelike
It is essential that each objective adapts to the current reality of the company. That is to say, that it goes hand in hand with them and the mission of it. In addition, it must be adjusted to the amount of resources, both human and material, that it has.
In this way, everything that happens will be developed under the same purpose. Therefore, if the company has as a general objective to increase its turnover, then it means that the new objective is going to have a positive impact on its development plan.
Timely or on time
Each of the SMART goals must have a completion date. Here, again, it is necessary to operate from objectivity. Since it may not be the most viable to sell 300 products in 1 week, but it is in 2 months because it is a multifactorial issue that, having been evaluated, indicates that it will be possible.
Additionally, if an organization does not manage a completion window, it risks prolonging the project or having unclear performance metrics.
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What is the SMART methodology for?
Today, many entrepreneurs wonder what is the definition of SMART goals? Perhaps because it seems incredible that, through only 5 elements, it is possible to positively impact a physical or virtual person.
However, it is thanks to this methodology that a business obtains direction, motivation and a much broader vision.
The SMART method helps to focus, prioritize and measure efforts. In this way, whatever the result, information will be obtained to optimize objectives or redirect strategies. Hence the importance of establishing a time limit.
By establishing SMART goals, your company, project or team will have:
- Clearer communication: if collaborators know how their individual work contributes to achieving the company’s objectives, there will be no friction when communicating to carry out their tasks. Having well-defined objectives guarantee the fluidity of the teams and promote the .
- Roadmap and clarity on the path to success: This will help you to take those firm and concrete steps towards the finish line.
- Tracking metrics: At the end of your project, SMART objectives will help you measure the success of your goals. In this case, remember that the objective must be challenging but, at the same time, possible to achieve.
- Time management improvements: Every project or team must have a schedule that specifies the start and completion dates of the assignments or tasks. The times must be realistic, so the main objective is not lost sight of.
- Continuous improvement processes: Once you analyze and monitor the metrics of a project, you will determine if these strategies were successful or not and if they are scalable in your business.
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Differences between personal and business SMART goals
One of the great advantages of SMART objectives is that you can adapt them to both your personal life and business, since they are the perfect basis for carrying out any planning without being afraid to synthesize and assuming that, as final result, you will obtain detailed information for your objective or goal.
Now, the difference between one and the other lies, for example, in aspects such as the following:
- Personal: establish new habits.
Business: inculcate values to an entire work team. - Personal: boost you in your professional career.
Entrepreneurial: turn one into a large corporation. - Personal: help you save for something specific.
Business: Help the business buy assets or create an emergency fund.
Remember that personal goals allow you to fulfill those dreams or desires that you want to achieve individually.
While the SMART objectives of a company are focused on achieving the well-being of those who make it up.
On the other hand, they serve so that a team does not lose its focus during daily work. The ideal is to clarify if these business SMART objectives are going to be monthly or weekly in order to know which will be the (performance indicator) where efforts are going to be focused.
How to define SMART objectives of a company
- Identify the needs and opportunities for improvement in your business.
- Define the approach with which you are going to align your SMART goals.
- Answer the trigger questions.
- Write your SMART goals.
1. Identify the needs and opportunities for improvement in your business
It is very important to know the starting ground. For this, it is essential that you thoroughly analyze your business and find both the needs and the opportunities for improvement. In fact, all companies have different needs, even if they belong to the same sector.
For this reason, it is key to set goals that reflect the needs of your company, rather than following those of your competition. Always evaluate what is most convenient and reasonable for your project or team.
With this information you will be able to advance to the next step and define the approach more easily.
2. Define the approach with which you are going to align your SMART goals
Previously, we explained what each of the letters that make up the word SMART mean. The next thing you need to do is know how to create SMART goals using the methodology.
So, here are 3 of the most common approaches to make it easier for you to define your own SMART goals:
Make the business vision more specific
That is, targeting a problem or a department to change or improve the direction of the company. For example, making sure the collections department submits invoices on time and covering payroll without a hitch.
Increase process control
This approach seeks to avoid bottlenecks in the processes. Two objectives related to this point can be to update your company through a digital transformation or to assign the right people to the jobs, as they are key to success.
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Optimize communication
It is ideal to ensure understanding of all the messages that make up a department or the company as a whole. This is important because, for example, when employees stay informed, it is easier for the feeling of certainty and focus to help them achieve those objectives for which they are designated.
3. Answer the trigger questions
Now that you know the approach, take it as a basis to answer the following questions according to the characteristics of the objective:
Specific: who, what, where, when and why
- Who or who are involved in this goal?
- What do we want to achieve through it?
- Where will this goal be achieved?
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