One of the most common management mistakes happens when defining where the company wants to go, whether in a specific area or in relation to general growth.
After all, “growing a lot” is the goal of all companies. Therefore, being specific and realistic when planning goals is essential to guide the team clearly, closely monitoring each stage.
You know the method by name, but want to better understand what they are, how to develop them and examples of SMART goals for a company? Continue reading the article and learn how to put it into practice.
SMART goals are based on a method that guides the definition of points related to an objective so that companies are precise when establishing what they want to achieve, making a reliable analysis of the business context.
At the beginning of the text, we mentioned a common statement in companies that conduct management “organically”, following the “market flow” and adapting as the scenario changes.
This type of approach can be applied, but it brings with it great dangers, such as excessive demands, stress for the team, lack of control over expenses, loss of productive capacity , among others.
The reason is that without a direction there is no focus, making the team's work difficult.
If instead of “growing a lot”, the goal is to increase annual revenue by 20% because the company reached the 15% target last year and has solid contracts for the year, the entire team can organize itself to achieve this overall goal. Is that clear?
In other words, SMART goals clearly establish the organization's purpose and the path to be followed.
When setting a goal, it is essential that managers align sectoral objectives so that they contribute to the main goal, doing good teamwork and developing the internal operational structure.
The five factors of the SMART method refer to the attributes that a goal must have when it is created, namely: specific, measurable, achievable, relevant and have a deadline to be achieved. This way, a team can guide itself, creating an action plan and indicators to monitor progress .
The acronym (word formed by the initial of several terms or expressions) that gives the methodology its name comes from the English words: Specific , Measurable , Atainable , Relevant and Time based.
Analyzing the company's context in the market or the sector's history, for example, to define the goal is the first step for the method to be applied successfully.
However, the indicators linked to the target are essential for the strategy, mainly because they facilitate the monitoring and measurement of the result at the end of the period.
Now that you know what SMART goals are and the factors involved in creating them, let's break down each step and understand what each letter means. So, below, we'll show and explain the original term. Let's go!
The first factor to consider when creating SMART goals is to be specific . For example, at the beginning of the article, we used a generic definition as an example, which is to say “we will grow a lot”.
To be a specific and clear goal, the ideal would be to say: we project a 20% growth in annual revenue.
This way, the company has a direction and can define how each sector will contribute to sales success, in addition to consolidating a good internal structure to guarantee team productivity and company profitability.
The second factor of SMART goals is that they are measurable , so they need to have a quantitative element associated with them, such as a number, percentage or indicator.
The definition helps in calculating the result at the end of the work period. So, if it is an indicator, there will be a formula, as well as if it is a number or percentage. Therefore, it is important to work with data history storage management software.
SMART goals are achievable . This means that the projection made can actually be achieved through efforts or changes in the production structure.
For example, based on the energy demand and the current cost to supply it, the company can look for new solutions to acquire the same amount, reducing the amount paid by 20%.
In other words, there was an analysis and the projection is based on reliable data so that the desired savings are actually possible.
Another determining factor in setting a consistent goal is that it is relevant . After all, the entire team will be working towards the same goal and, therefore, it must contribute positively to the growth of the business.
Increasing revenue or saving on electricity bills are examples of relevant goals, as they impact the company's structure, freeing up capital for new investments.
Finally, SMART goals are time -based . That is, there is a deadline for achieving the goal, which can be annual, quarterly, monthly or another time marker appropriate to the type of work.
In this way, the tasks linked to the goals are divided throughout the period with teams responsible for completing each stage and reporting on progress, ensuring the success of the planning.
The SMART goal-setting method can be applied to all areas of a company, from strategic planning to purchasing management. In addition, it can guide growth and project goals.
We have listed some examples to inspire your business goals:
We appreciate you contacting us. Our support will get back in touch with you soon!
Have a great day!
Please note that your query will be processed only if we find it relevant. Rest all requests will be ignored. If you need help with the website, please login to your dashboard and connect to support
