This article covers everything about smart goals and how they should be used in your business. We discuss smart goal examples along with all the essential facts.
Setting and achieving goals is a significant part of any business and crucial for any business to succeed.
They may need to grow, maintain their current position or even create a niche for themselves. These goals are all achieved through what the organisations do and the decisions they make.
A SMART goal is one that considers Specificity, Measurement, Attainability, Realistic timelines and Timeframe.
Smart Goals are an important part of the organisation design process because they allow for organisational alignment and objectives to be aligned with corporate purpose.
A SMART goal is a type of goal that is used to aid goal planning. SMART is an acronym that stands for:
Goals generally are an important component of every aspect of business and life because they give direction, motivation, a clear focus, and a sense of importance.
As a business owner, you're giving yourself an objective to shoot for by creating goals.
But a SMART goal combines all the above factors to help managers and owners focus their efforts and enhance chances of success.
As mentioned above, smart goals are a specific type of goal setting that follows five key criteria which we outline below.
Specific -Specific goals have a far better probability of being achieved as they are highly focused and force you to articulate the exact objective.
When writing your goal ensure you articulate details such as exact numbers, people who will be responsible, specific tools and resources needed.
Measurable -Businesses will not be able to assess their progress or decide if they are on pace to meet their goal if there is no ability to measure it.
Your goal needs to have both a start and finish point in terms of progress, such as "increasing subscribe count from 100 to 125".
Achievable - The goal's achievability should be stretched enough to make companies feel pushed yet it should still be within reason and have the possibility of completion.
Use historic data and in-depth market analysis to ensure you are able to meet your objective, resources such as the Australian Bureau Of Statistics can be useful in this scenario.
Realistic - A SMART goal must be realistic in the sense that it can be accomplished with the resources and time available.
If a team feel they can achieve an objective, it will increase morale and overall output (although don't let realism be another word for pessimism! You should still reach for the stars when you can!)
Timely - A SMART goal must be timely, with a beginning and ending date. There will be no sense of urgency and, as a result, less desire to attain the objective if it is not time-bound.
A clear timeframe needs to be articulated for the completion of the goal, this can always be adjusted should you encounter any changes along the way.
Below we outline three smart goal examples and why they fit the SMART methodology.
"Increase our company's market share by 10% by building 3 additional stores.
The stores will be in the town's two main malls by the end of the year by taking advantage of the increased consumption produced by the upcoming sports event."
"Enable 15 instalment payments by credit card to sell 35 per cent more evening gowns during May, when marriages occur in our region.
The sales will be compared to May last year"
This SMART goal is:
"Increase by 25% by the end of the year, the revenue from our e-commerce store.
This will be driven by creating content on important occasions (Christmas, Mother's Day, Valentine's Day, etc.) in our blog to capture 20 per cent more leads than last year."
Now that we have explored some smart goal examples we will discuss why these goals are important to your business.
It Clarifies Long-Term Vision. It's integral to not strive to achieve goals that are ill-defined and unclear as without a clear vision and goals.
Otherwise, you may find yourself operating without clear direction, this can be costly to your business in terms of both capital and staff morale.
Moreover, setting a long-term goal can assist and encourage your business to achieve and propel forward through momentum and clarity.
Maximises Concentration And Discipline. Setting up a goal allows you to concentrate on what you should be aiming towards.
It will keep you from becoming side-tracked on day-to-day activities and from squandering resources.
It Allows You To Set Priorities. Having a defined SMART goal will allow you to set priorities for your day to day tasks.
This can be achieved by measuring the importance of each task against your goals allowing you to decide which of these tasks must take precedence.
It Compels Individuals. Simply setting a goal will not guarantee the achievement of the goal. You must have the capacity to act.
SMART goals can compel individuals to act as they are highly specific and also measurable. This type of goal shows those involved that it can be achieved and will be much more likely to be supported.
Specificity Aids Focus. As mentioned above, SMART goals are by nature specific, this allows a much greater ability for focus when conducting the supporting tasks need to achieve the goal.
The lack of vagueness will act as a guiding light to all involved and provide room for specialisation.
Able To Monitor Progress Easily. SMART goals make it easier to assess the goal's progress and in the long run, it is easier to identify who/what is functioning well when working towards the goal.
It also allows you to assess what is not working well and requires more attention. The reason this is possible is that SMART goals are measurable as discussed earlier.
When setting any type of goal in business there are a few key practices that you can follow to ensure the best chance of success.
Some of these practices and tips are as follows:
Now that you have an understanding of SMART goals and we have explored some smart goal examples, it's time to apply these principles to your business and daily operations.
Every business can benefit from effective goal setting regardless of size and industry, good goal setting is also crucial when in the beginning stages and should be part of any business plan.