If you want to take your business to the next level, SMART goals they are the key to gaining clarity on the process and maintaining attention to the details necessary to achieve it.
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 is capable of possessing 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 making room for it, it is essential that you define those objectives that will not only guide your company, but will help you define the appropriate ones to achieve each of them.
I invite you to continue reading this article in which I will explain what the SMART goalshow to define them for your company and be able to make great use of them.
What are SMART goals
The SMART methodology It refers to the five characteristics with which an objective or each new goal that is defined within a company must meet. The main purpose of all of them is to analyze the performance of all efforts in a systematic way.
What does the acronym SMART stand for?
Although it is known by its acronym in English, SMART. In Spanish these business goals can be literally translated as smart goals.
Thanks to them, the clarity required to achieve everything that is established within an organization is obtained. 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 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 gadgets per month to 300 in two 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. Which is much easier thanks to the previous step. The reason why it must be measurable is because it would be difficult to interpret the stated result if it did not have a number, a range or a metric with which to compare it. Software tools such as spreadsheets or data visualization platforms are commonly used to carry out this process.
Attainable 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 analyzed is the market, the price range, the trends, among many other factors that indicate that this new goal is viable.
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 its general values and objectives. In this way, everything that happens will walk 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 two months because it is a multifactorial issue that, having been evaluated, indicates that this will be possible.
What is the SMART methodology for?
Nowadays, many entrepreneurs ask themselves what is SMART? Perhaps because it seems incredible that, through only 5 elements, it is possible to positively impact a business. However, it is thanks to this methodology that a business gains direction, motivation and a much clearer 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.
Differences between personal and business SMART goals
One of the great advantages of the SMART methodology is that you can adapt it 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 a result, At the end, you will get a detailed plan 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.
Business: take a company from an MSME to 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 the complete well-being of those who make it up.
How to define SMART objectives of a company
- Identify the needs and opportunities for improvement in your business.
- Define the approach with which you will 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.
Although it is easier to see the needs or deficiencies, you must also focus and carry out an in-depth analysis of the areas for improvement. Many entrepreneurs sin by thinking that things the way they do them are fine because they have worked for them and that is precisely one of the biggest mistakes when starting a business.
With this information you can move to the next step and define the focus more easily.
2. Define the approach with which you will align your SMART goals
Previously you had the opportunity to understand what each of the letters that make up the word SMART is equivalent to. The next thing you need is to define the objective for which you want to use the methodology. So here are three 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, ensuring that the collections department sends invoices on time to collect and cover payroll without a hitch.
Increase process control
Approach through which it seeks to avoid bottlenecks. Here you are looking for something that can be achieved, for example, through a digital transformation or by assigning the right people to the jobs that are key to decision-making.
Do you know the level of digital transformation of your business? Find out with this one.
Optimize communication
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:
Specific: who, what, where, when and why
- Who or who are involved in this goal?
- What do I want to achieve through it?
- Where will this goal be achieved?
- When do I want to reach it?
- Why do I want to reach her?
Measurable: criteria for measuring progress
- How much or to what extent?
- How will I know if I have already reached the goal?
- What is going to be the indicator that shows progress?
Achievable: ways in which it is possible to achieve it
- Do I have the resources to achieve the goal?
- If I don’t have the resource, what am I missing?
- Are there any pre-existing success stories around this goal?
Realistic: given the resources and time available
- Is the goal realistic?
- Is it within the reach of the business and its work team?
- Is it achievable given the time and resources?
- Are you and your team capable of committing until the goal is achieved?
On time: has a start and end date
- Does my goal have a deadline?
- By when do I want to achieve my goal?
4. Write your SMART goals.
With the answers to the previous questions, you will know if the goal you set is realistic and achievable. If it isn’t, you can rethink it, or save it for the future and look for other goals that you can accomplish at that time.
If it is achievable and realistic, you should only use that data to write your goals.
SMART objectives: examples to apply in your business
The time has come to differentiate a general objective from a SMART objective. The following two examples will help you create objectives that meet the main characteristics.
Prospect more customers through the website
This first example is one of the most common in a company. Since this is the means through which a large number of clients can be prospected and new sales closed. Therefore, and following the questions previously presented, the objective would be as follows.
SMART objective: increase the number of visits to our website in three months with a focused communication strategy to prospect 7 new people every fortnight.
Specific: increase the number of visits to our website
Measurable: 7 new people every fortnight
Achievable: with a focused communication strategy
Realistic: to prospect
On time: in three months
Increase the sale of the flagship software product
For a software development company, selling its products is a fundamental part, so an objective can be improved with the SMART methodology in the following way.
SMART objective: increase sales in the next quarter by 10% more than last year with the help of an email marketing campaign to stand out in the industry with our flagship product.
Specific: increase sales
Measurable: 10% more than last year
Achievable: with a Realistic campaign: to stand out in the industry with our flagship product
On time: next quarter
Bonus: example of a goal that is not SMART
In it, new ideas, proposals and improvements frequently arise. However, it is common that these are not part of the SMART methodology. Why? Because they lack a concrete, clear, realistic or measurable vision.
Imagine you have a growing company. This means that you need more collaborators in various areas. The easiest thing is to tell the person in charge or the human resources department to start hiring more people. However, a series of issues enter here that will make the…
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