SMART objectives

What is known as the SMART methodology or SMART technique first emerged in the 1980s, thanks to an article written by George T. Doran, a consultant and director of planning for the Washington Water Power Company, in Management Review magazine. Doran introduced the concept of SMART objectives as a systematic approach to setting goals that are clear and achievable. Since then, this methodology has been widely adopted in areas such as business management, strategic planning, and personal development.

In practice, SMART is an acronym that breaks down the key characteristics that objectives must have in order to be effective or, in other words, the criteria they must follow in order to lead to success. Thus, SMART objectives should be:  

• Specific 

Objectives must be clear and defined. If we focus on the business level, for example, instead of simply wanting to “increase the market share”, the application of the SMART method would translate into setting the specific objective of “increasing the market share by 10%”. This clearly defines what you are seeking to achieve.  

• Measurable 

Equally as important as being clear about what we want to achieve is that the goals set are quantifiable so that progress can be measured. Continuing with the previous example, market share can be measured numerically, which makes this goal measurable. Progress can be evaluated by comparing the current market share with the 10% target.

• Achievable 

SMART objectives are realistic and achievable with the resources available. The 10% market share target we were talking about is ambitious but achievable. In addition, it is possible to evaluate whether the company has the resources and the right strategy to achieve this increase.

• Relevant 

According to the SMART method it is also important that the proposed goals are aligned with the values, interests, and long-term objectives, regardless of the scope in which the objectives are defined (business, personal, educational...). In the context of a company, increasing market share, for example, may be relevant to the growth and competitiveness of the organization in its sector.  

• Time-bound

Having a defined timeframe for achievement is another key to SMART objectives. Setting a deadline helps to maintain focus and avoid procrastination. With respect to the proposed example, to meet the SMART criteria, instead of just setting out to increase market share by 10%, you should add the specific deadline: by the end of the year, in six months, by next year...

SMART objectives are designed to be specific, measurable, achievable, relevant, and time-bound. But how do you apply them on a daily basis?

Below are some examples of SMART objectives applied to the company's specific case:

• Marketing: Increasing the conversion rate is a common goal for any corporation. Transforming this objective according to the SMART methodology requires a new approach. The idea would be to increase it by 20% over the next six months by implementing digital marketing strategies. Therefore, we would be talking about a specific objective by focusing on improving the conversion rate, measurable by establishing a 20% increase, achievable with effective digital marketing strategies, relevant to increase the effectiveness of the same, and time-bound as it is over the next six months. 

• Productivity: Another area where SMART objectives have a role is productivity. Instead of a generic goal of improving productivity, we should talk about reducing production time by 15% in the next year by optimizing processes and investing in technology. In this way we are making the objective specific, measurable, achievable, relevant, and time-bound.  

• Customer service: Improving customer satisfaction can also be part of any company's SMART objectives. But to do so, again, the approach needs to be fine-tuned. Setting a goal of a 10% improvement, within three months, by implementing a training program for customer service staff is a clear example of applying the SMART technique to this scenario.   

• Innovation: Innovation is another area where the potential impact of SMART objectives is evident. A good example of this could be, for example, the idea of launching at least two new innovative products on the market (specific and measurable), in the next year (time-bound), based on customer feedback and market research (achievable and relevant). 

Ultimately, the company applies the SMART methodology as a useful tool to effectively set goals and achieve success with all types of projects.