Objectives Smart Principle

SMART Goals and SMART Objectives

SMART objectives and SMART goals are fundamental to a high performing organisation as they increase clarity and engagement, and should underpin your performance management process. Research (Locke & Latham 2002) demonstrates consistently that stretching but achievable goals motivate people to deliver their best. They also provide staff with clarity and purpose which is the foundation of employee engagement. Using a smart framework will ensure success with the goal setting process. Let’s get into the SMART acronym and SMART principles and how they can change your goal setting.

What are SMART Goals and SMART Objectives?

SMART is an acronym that means Specific, Measurable, Achievable, Relevant and Time-bound. The first known use of the term was in the November 1981 issue of Management Review by George T. Doran. These principles ensure your goals and/or objectives are clear and achievable, providing a solid foundation for success.

These should be explicitly or implicitly aligned with the overall goals of the organisation. Measurable smart goals ensure realistic expectations and a clear understanding of the end goal, together with how to get there through setting smarter goals

Goals vs Objectives

While the terms “goals” and “objectives” are often used interchangeably, they mean different things. Goals are broad, long term aims that define what you want to achieve. They provide overall direction and are often more abstract. For example a goal might be “Become a market leader in the industry”.

Objectives are specific, short term steps that help you achieve your goals. They are concrete and measurable, detailing exactly what you need to do. An example of this would be, an objective to support the goal of becoming a market leader might be “Increase market share by 5% within the next year through targeted marketing campaigns”. However some organisations use the language goals over objectives.

• Specific: Being specific while writing your objectives is all about being clear so that both you and the employee understand exactly what is required. Suppose an objective is general rather than specific. In that case, it can be very difficult to evaluate the progress that has been made against it without being subjective, answering the questions of who, what, where, when, and why. For example, instead of saying ” Put together a team to reduce service times,” a specific goal would be ” Put together a Project Management Team from lean accredited production representatives to create and implement lean improvements in order to reduce average engine service times by an average of 5 hours by the end of March.” This also links back to the organisational goal.
• Measurable: To track progress and stay motivated, your SMART goals and objectives need to be measurable. This means having clear criteria for success. These can be stretch goals that align to the organisation’s long term goals. An example of this would be “Increase website traffic” becomes “Increase website traffic by 15% in the next 3 months”. This is a measurable goal with a clear measure of the success outcome.
• Achievable: While you want to set big goals, they should also be realistic. Consider your resources and constraints. An achievable objective might be “Train 10 new employees in the next 6 months” assuming you have the capacity to do so.
• Relevant: Your goals and objectives should be explicitly or implicitly aligned with the overall goals of the organisation and should align to broader business goals. They need to matter to your organisation and contribute to overall success. For example “Launch a new marketing campaign” should be relevant to your company’s growth strategy.
• Time-bound: Every smart goal and smart objective needs a deadline or be time limited to create a sense of urgency and prompt action. A time sensitive goal could be “Reduce customer response time to under 24 hours within the next month”.

Why use SMART Goals and SMART Objectives?

Using the SMART criteria to set goals and objectives brings:

• Clarity: Clear goals and specific objectives eliminate ambiguity and provide direction.
• Focus: They help you prioritise and focus on what matters.
• Motivation: Measurable and achievable goals keep teams motivated.
• Accountability: Time-bound goals and objectives create accountability and progress.

How to Use SMART Goals and Objectives in Your Organisation

To use SMART goals and defined objectives follow these steps:

• Define Your Goals: Start by what you want to achieve. Ensure these are relevant goals that link back to your organisation’s mission and vision.
• Break Down Goals: Break down bigger goals into smaller, SMART objectives.

The SMART acronym

SMART goals were first formulated by George Thomas Doran in 1981 as part of management review volume 70. He describes how business goals can be measurable and achievable. The acronym is used for performance evaluations and is meant to help managers or employees define their goals and how to achieve them. Although used in the workplace SMART goals are personal.

• Communicate Clearly: Everyone involved should understand the measurable goals and their part in achieving them.
• Monitor Progress: Review regularly and adjust goals and objectives as needed to stay on course.
• Celebrate Success: Recognise and celebrate achievements to keep motivation and morale high.

How Actus Performance Management Software Supports SMART Objectives

Actus performance management software is designed to embed SMART principles into your organisation’s processes. With the ability to set, track measurable objectives and review objectives, Actus ensures your goals are Specific, Measurable, Achievable, Relevant and Time-bound. The software facilitates continuous performance conversations, real-time feedback and reporting, so you can monitor progress and adjust objectives as needed. By using Actus you can increase employee engagement, accountability and overall performance so your organisation stays on track to achieving its goals.

The company has evolved over the past 12 years, starting with pure performance management. Then building out our own fully integrated talent, learning, compliance and feedback functionality. We also have API’s to link to payroll/HRIS systems. This means you can start with Actus as a software solution for your initial requirements. With full confidence that this can evolve over time to address future strategic requirements with fully integrated add on modules. With the same great customer service!

Take a quick look at the Actus system tour here:

3-Minute System Tour3

Book a demo and discussion with one of our expert team who can outline how Actus can address your people challenges and will walk you through Actus Performance Management software:

Request Actus Software Demo

Actus believe in a better workplace for people, to support the Smart Objective Principals we have a free manager’s guide “7 Simple Steps to Setting Objectives” available to download here:

Download 7 Simple Steps Manager’s Guide

Actus offers more than free HR resources and great performance management software. Our team of organisational development consultants can help with your performance management needs or smart goal setting requirements and we also have a podcast called ‘The HR Uprising’ which has a variety of informative topics in business and HR. Please visit the HR Uprising website link below, or download wherever you get your podcasts from (YouTube, Spotify, Apple, Audible etc).

HR Uprising Podcast episodes

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