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All rights reserved. No part of this publication may be reproduced

Objectives set out what a business is trying to achieve. They should be based on organisational strategy and be aligned with corporate vision, mission and values. Objectives may be set at the level of the whole organisation or at divisional, department, team or individual levels. Lower level objectives and project objectives should ideally relate to one or more of the corporate level objectives. Leaders and managers need to get the process of setting objectives right, as inadequately formulated objectives can cause confusion or lead individuals, teams or the whole organisation in the wrong direction.

The SMART acronym is a tool designed to help organisations and individuals set objectives in an effective and productive manner. Specific and measurable objectives define the success of a project or initiative. Achievable and realistic objectives engage and motivate individuals. Time-bound objectives ensure that all stakeholders agree on time scales for the achievement of objectives. Both Peter Drucker (1955) and G.T. Doran (1991) have been credited with developing the model, although it is difficult to be certain whether either of these two were really the first people to use the term ‘SMART’ with reference to objectives.

The concept of SMART objectives is commonly used by managers to set individual objectives within appraisal and performance management systems. Like many models, SMART has been criticised and a number of variations have been proposed. These include SMARTER which adds Evaluated and Reviewed (or Rewarded) to the traditional framework.

An objective is a statement which describes what an individual, team or organisation is hoping to achieve. There are a number of different versions of the acronym with different terms associated with some of the letters as indicated below. Objectives are 'SMART' if they are specific, measurable, achievable, realistic and time-bound.

Understanding SMART Objectives

Specific – Outline in a clear statement precisely what is required.

Measurable – Include a measure to enable organisations to monitor progress and to know when the objective has been achieved.

Achievable – Objectives should be challenging, but ensure that failure is not built into objectives.

Realistic – Focus on outcomes rather than the means of achieving them.

Time-bound – Agree on the date by which the outcome must be achieved.

Action Checklist

To effectively set SMART objectives, consider the following guidelines:

• Specific: Objectives should describe the result desired in a detailed and focused manner. Questions to aid in this include: What outcomes are we looking for? How will this be achieved? Who will be responsible?
• Measurable: Measurement must relate to a percentage, frequency, rate, or number. It is essential to define how success will be tracked.
• Achievable: Objectives must be feasible given the available resources and skills of personnel involved. Consensus on the achievability of objectives will boost motivation.
• Realistic: Objectives should consider potential obstacles and align with wider organizational goals.
• Timely: Set deadlines for objectives to instill a sense of urgency and keep teams accountable.

Communicate Objectives

Effective communication of objectives—particularly at the organizational level—ensures all stakeholders understand their role in achieving them. Such transparency involves not only employees but also teams, clients, and suppliers, promoting a unified approach to goal achievement.

Management should avoid common pitfalls in objective setting, such as lack of specificity, unrealistic goals, and absence of measurable tracking systems. The importance of clear communication extends to keeping objectives relevant and accommodating changes in circumstances.

Conclusion

Setting SMART objectives is fundamental in fostering productivity and guiding organisations towards their strategic goals. A structured approach rests on clearly defined criteria that ensure objectives are both motivational and achievable, fostering a culture of accountability and success.

References

• Drucker, P. F. (1955). The Practice of Management. New York: Heinemann.
• Doran, G. T. (1991). There's a S.M.A.R.T. Way to Write Management's Goals and Objectives. Management Review, 80(11), 35-36.
• Yemm, G. (2012). The Financial Times Essential Guide to Leading Your Team: How to Set Goals, Measure Performance and Reward Talent. Harlow: Financial Times Prentice Hall.
• Hale, R., & Whitlam, P. (1995). Target Setting and Goal Achievement. London: Kogan Page.
• Rouillard, L. A. (1994). Goals and Goal Setting: Planning to Succeed. London: Kogan Page.
• Mager, R. F. (1991). Goal Analysis, 2nd ed. London: Kogan Page.
• Weihrich, H. (1985). Management Excellence: Productivity Through MBO. New York NY: McGraw Hill.
• Kelsey, R. (2011). Set Realistic Goals and Meet Them. Training Journal, July, 55-58.
• Chamberlain, J. (2011). Who Put the ART in SMART Goals? Management Services, 55(3), 22-27.
• Chartered Management Institute. (2014). SMART Task Template. CMI.