On numerous occasions we talk about objectives, both at strategic or portfolio management levels, such as with OKRs, as well as at team level, talking about “Sprint Goals”, for example.
In all these occasions you always hear that:
“Make them SMART!”
But what does SMART objectives mean?
Let’s start at the beginning…
SMART objectives represent an essential methodology in the strategic planning of any company or organization, and can even be used for personal planning. This approach helps to
Although as we will see in this article, we have some meaning of SMART that may vary in some of its characteristics.
Everything that will be explained below is also applicable to “shares”. When we talk about actions, we are referring to agreements on the results of meetings or workshops, which is a subject that in many organizations we find in meetings or work sessions where the results end up being an accumulation of good intentions that are inconcrete and difficult to follow up.
1. What does S.M.A.R.T. stand for and how to apply it in Strategic Planning?
SMART is an acronym, originally used in this article by Doran, G.T. (1981), whose letters correspond to the initials of the 5 criteria that each objective of a strategic plan must meet.
There are different versions of the meaning of each letter, but the most commonly used criterion is the following:
Specific – Específico
the key to clear and concrete objectives
The objective must be clear and precisely defined to avoid ambiguities. This helps to understand exactly what is expected to be achieved. For example, instead of “increase sales”, one could state “increase sales in France by 20% for the next quarter”.
Measurable – Measurable
with numbers, to be able to evaluate progress
“You can only improve what you can measure” – Peter Drucker.
That is why it is essential that the objective can be measured, with numbers, so that progress can be evaluated and we know when it has been achieved. This allows for follow-up and adjustments if necessary. For example, “reach 10,000 unique monthly visitors to the website”. In addition, measurable objectives allow milestones to be celebrated, which can increase motivation and commitment to continue working towards the goal.
Attainable
: realistic, achievable objectives.
The objective must be realistic and achievable, i.e., within the capabilities and resources available. Setting overly ambitious goals can lead to frustration and demotivation. For this reason, we will include in the SMART objective some words that respond to “how” we will achieve this objective.
Relevant – Relevant
Aligning goals with the company’s vision
Each objective must contribute significantly to the company’s overall objectives and must be aligned with its vision and mission. For this reason, it is desirable to include in the SMART objective some words that respond to the “why” we want to achieve this objective.
Time Based – Temporality
establishes the maximum date by which it must be achieved.
Finally, it is important to establish a timeline, deadline or a specific and realistic time frame to achieve the objective.
This creates a sense of urgency and helps prioritize tasks and resources.
2. The SMART Method: Techniques and Tools for its Implementation
How to Define Key Performance Indicators (KPIs) with the SMART Model
You can use the SMART criteria to set smart objectives, and apply the same criteria to your KPIs, the metrics you use to measure each of your objectives. These should be indicators that clearly reflect progress toward the established objective.
3. SMART methodology and OKRs
Comparison: SMART Objectives and OKR (Objectives and Key Results)
When we work with OKRs (if you want to know more I recommend this course), we also talk about SMART objectives.
But there is a difference:
the A!
The A does not stand for Attainable, but for AMBITIOUS.
We don’t want achievable goals (only), but AMBITIOUS ones!!!
The goal is the place you want to get to, while the objectives are the intermediate steps to get there. SMART objectives focus on clarity and achievability, while OKRs promote the creation of ambitious goals.
These objectives have several key results (KR’s) associated with them as progress indicators for each of these objectives.
OKRs respond to the scheme “I will perform ‘Objective’, measured by ‘Key Results (KR’s)'”.
4. Examples of SMART Objectives in Various Business Contexts
Example of a SMART Objective in Digital Marketing
“By the end of the fourth quarter, increase website traffic by 30% through an SEO and content marketing campaign.”
Example of a SMART Objective for the Sales Department
“Increase sales of our flagship product by 25% in the next six months, through cross-selling and up-selling strategies.”
Example of SMART Objective in Software Project Management
“Develop and launch the most requested functionality for our app in three months, improving customer satisfaction by 15%.”
Example of a SMART Objective in Social Networks
“Increase follower base on Instagram by 20% and improve engagement by 30% in the next 90 days.”
Example of a SMART Objective in Sustainable Development
“Reduce the company’s carbon footprint by 40% over the next five years by implementing renewable energy and optimizing production processes.”
Example of a SMART Objective in the Education Sector
“Improve student academic performance by 30% in the academic year through personalized tutoring programs and educational technology.”
Example of a SMART Objective in the Personal Sphere
“Lose 10 kilos in six months through a balanced diet and regular exercise, with weekly progress monitoring.”
Example of a SMART Objective in Public Health
“Increase the vaccination rate in the community by 25% in the next year, through awareness and accessibility campaigns.”
Examples of SMART Objectives to Improve Conversion in E-commerce
“Achieve a 15% increase (from the current 10% to 25%) in our online store conversion rate in the next four months by optimizing the user experience.”
SMART Objectives in Education and Professional Development
“Develop a training program that increases the digital competencies of the team by 40% (from the current 10%, according to our internal test, to 50%) by the end of the year.”
5. Practical Tips for Formulating and Achieving your SMART Goals
There is no magic, foolproof technique for creating SMART objectives.
Formulating SMART objectives is an art that is developed through practice, review and feedback.
Important, review and feedback.
When we set an objective (or action) it is as simple, but powerful, as asking ourselves the following questions:
- is it specific? is that clear? Is there ambiguity or is it clear to everyone? A good practice is for everyone involved to be able to answer what is involved in achieving that goal.
- is it measurable? Is there a metric that allows us to know if we have achieved it or to be able to measure the degree of achievement?
- Is it achievable? It is vital to be realistic and objective when setting goals, considering both available resources and other constraints.
- is it relevant? Does it contribute to our mission or vision? A good practice is to reflect together on the degree of impact that achieving the objective will have on our purpose as an organization or team.
- Does it have a time frame? is there a date for when we want to reach it? Although the time frame is known to all participants, it is advisable to state it explicitly next to the objective.
SMART Objectives Tracking and Review Techniques
Formulating SMART GOALS is a very powerful tool. If we also want to maximize the impact of this methodology, it is necessary to follow up and review them.
Constant monitoring and periodic review are essential to adjust strategies and ensure that objectives are met. Here are some techniques:
- Regular review: it can be weekly, monthly, quarterly, yearly… depending on the nature of your objectives. It is important to have fixed cadences and sessions in the calendar to ensure that these reviews are carried out.
- Sub-objectives: divide larger objectives into smaller, measurable ones.
- Automated progress reports: if progress reports are not fully or partially automated, it will generate frustration in whoever has to generate them, and can lead to “analysis paralysis”.
6. Success Stories: Companies that Have Succeeded with the SMART Methodology
Organizations that implement SMART objectives achieve greater efficiency, productivity and adaptability in an ever-changing business environment.
The SMART methodology has been adopted by numerous successful companies in various industries to set and achieve their objectives. Although the internal policies of these companies may not be publicly detailed regarding the specific use of the SMART methodology, several leading companies are known to apply similar principles to define and manage their objectives. Some examples are: Google (particularly with its OKRs system, “Objectives and Key Results”) or Microsoft.
Case Studies in Marketing and Attraction Marketing
Samsung, known for its innovation and rapid growth, uses a goal management approach that aligns with SMART principles to drive its product development and market expansion.
Examples of Organizational Transformation with SMART Objectives
IBM has used goal methodologies based on SMART principles to drive innovation and adaptation in its transformation from a hardware company to a leader in software services and solutions.
Toyota applies a goal management approach that aligns with SMART in its production and continuous improvement system, which has been fundamental to its success in the automotive industry.
7. Conclusion: The Relevance of SMART Objectives in Contemporary Strategic Planning
SMART objectives are an invaluable tool in the strategic planning of any individual or organization.
Its focus on specificity, measurability, achievability, relevance and timeliness ensures that the goals set are clear, realistic and, above all, effective.
There are other tools/frameworks that will help us in our strategy, such as OKRs.
