How to Write Good Performance Goals: A Guide to Setting SMART Objectives
Of the many employee goal-setting frameworks, the SMART framework is one of the most popular. First proposed by George T. Doran in the November 1981 issue of Management Review (There's a S.M.A.R.T. way to write management's goals and objectives), the SMART system of setting goals and objectives is a tried and tested method of helping employees set clear and effective professional goals.
The SMART framework is a mnemonic acronym that recommends goals and objectives should be:
- S — Specific
- M — Measurable
- A — Achievable
- R — Relevant
- T — Time-Bound.
When done correctly, SMART objectives help employees focus their efforts, monitor their progress, and achieve success. This article explores the process of setting SMART objectives and how to write good performance goals.
Why use SMART goals?
Clarity
Writing down objectives provides employees clarity and focus. Simply by committing them to paper, makes them more likely to be achieved - by up to 42%, according to one study.
Making these objectives specific, measurable, and time-bound ensures they are even more useful. Employees can clearly define what they want to achieve and how they will achieve it. This clarity helps them stay focused and motivated and makes it easier to monitor progress and adjust course if necessary.
Here are other ways that SMART objectives help employees:
Accountability
Employees who have SMART objectives can be held more effectively to account - it is clear whether they have met their goals or not. By setting measurable objectives and tracking progress, employees can also assess their own performance and take responsibility for their actions. This accountability helps them stay motivated and committed to their objectives.
Efficiency
SMART objectives help individuals use their time and resources more efficiently. By setting achievable, relevant objectives, they can prioritise their efforts and avoid wasting time on activities that are not as important to their success and that of the business..
Measurement
SMART objectives provide a way to measure progress and success. Employees can track their progress and evaluate their performance by setting measurable objectives. This measurement helps them assess their strengths and weaknesses, identify areas for improvement, and adjust their approach if necessary.
Goal attainment
SMART objectives increase the likelihood of achieving goals. By setting specific, measurable, achievable, relevant, and time-bound objectives, they can create a clear roadmap for achieving their goals. This roadmap helps them stay on track, maintain their motivation, and achieve success.
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How to write good performance goals using the SMART framework
The SMART framework for setting goals and objectives is instrumental in performance management, where the success of performance management objectives rests on realistic, data-driven and fair goal-setting. Here’s what to consider when setting SMART objectives:.
1. Specific
A specific objective should be clear, concise, and well-defined. The objective should provide a clear sense of direction and purpose, which helps individuals focus their efforts and achieve their goals.
To make objectives specific, it is important to answer the following questions:
- What exactly do you want to achieve?
- Why is this objective important?
- Who is involved?
- Where will this objective be achieved?
- When will this objective be achieved?
Example of “specific” in a SMART goal
Goal: By the end of the quarter, the employee will increase their sales revenue by 20%.
This goal is specific because it clearly outlines what the employee needs to achieve and by when. The goal specifies the outcome that the employee should aim to achieve (increase sales revenue), by what percentage (20%), and within a specific timeframe (end of the quarter).
The employee knows what they need to do to achieve this goal and can measure their progress along the way. The specificity of the goal also allows the employee and their manager to have a clear and objective way of evaluating the employee's performance at the end of the quarter.
2. Measurable
Measurable means objectives should provide a way to track progress and evaluate success. They are quantifiable, meaning that progress towards the objective can be easily asssessed and tracked over time.
To make objectives measurable, it is essential to ask questions like:
- How much or how many?
- How will progress be measured?
- What is the end goal?
Example of “measurable” in a SMART goal
Goal: By the end of the quarter, the employee will increase their sales revenue by 20%
The goal is measurable because it includes a specific metric — sales revenue — that can be tracked and measured. The employee can monitor their sales revenue regularly and compare it to their goal of a 20% increase by the end of the quarter. This allows the employee to track their progress, adjust their strategy if necessary, and ensure they are on track to achieve their goal.
The goal is also measurable because it includes a specific time frame — the end of the quarter. This provides a clear deadline for the employee to work towards, which helps them to stay focused and motivated.
3. Achievable
The third step in setting SMART objectives is to make them achievable. Achievable objectives are realistic and attainable, given the resources, time, and other constraints that may be present.
To make objectives achievable, it is crucial to consider factors like:
- What resources are required?
- What obstacles or challenges might arise?
- What is a realistic timeline for achieving the objective?
Example of “achievable” in a SMART goal
Goal: By the end of the quarter, the employee will increase their sales revenue by 20%.
It’s important to note that “achievability” is a highly subjective metric that depends on a particular situation and employee. In this case, let’s assume that the goal is achievable based on the employee's current skills, resources, and market conditions. Setting goals collaboratively should ensure that employees have targets that they are confident they can achieve.
The employee has a clear target of a 20% increase in sales revenue, which is a challenging but reasonable goal. Provided the employee has the necessary resources and support — such as a strong sales team, a good product, and a supportive manager — we can also assume they have the means to achieve their goal.
4. Relevant
The fourth step in setting SMART objectives is to make them relevant. Relevant objectives are aligned with personal or professional goals and contribute to broader objectives or priorities.
To make objectives relevant, it is important to ask questions like:
- How does this objective align with my personal or professional goals?
- How does this objective contribute to broader objectives or priorities?
- What is the impact of achieving this objective?
Example of “relevant” in a SMART goal
Goal: By the end of the quarter, the employee will increase their sales revenue by 20%
The goal is relevant because it directly contributes to the business’s success. Increasing sales revenue is a key performance indicator (KPI) for many businesses, and achieving this goal can significantly impact the company's overall financial health and growth.
By increasing their sales revenue by 20%, the employee can contribute to the company's revenue goals and profitability, which, in turn, is relevant to the business’s overall success. This goal also aligns with the employee's job responsibilities and job description: driving sales growth.
5. Time-Bound
The final step in setting SMART objectives is to make them time-bound. Time-bound objectives have a clear timeline or deadline for completion. This helps employees stay focused and motivated and provides a way to track progress and evaluate success.
To make objectives time-bound, it is important to consider questions like:
- When will this objective be achieved?
- What is the deadline or timeline for achieving the objective?
- What are the milestones or checkpoints along the way?
Example of “time-bound” in a SMART goal
Goal: By the end of the quarter, the employee will increase their sales revenue by 20%
The goal is time-bound because it has a specific deadline — the end of the quarter. This helps the employee to focus their efforts and work towards achieving the goal within a set timeframe.
By setting a specific deadline, the employee can prioritise their sales activities and take action to achieve the goal within the allotted time. The goal’s time-bound aspect also helps to ensure that the goal is achievable and realistic within the given timeframe.
Bringing everything together
Creating SMART goals enables your employees to increase clarity in their role, improve focus, enhance performance, and increase accountability. They help to clarify what needs to be achieved, why it is important, and how it will be accomplished. This goes a long way towards increasing motivation and productivity.
By tracking progress, employees and managers can identify improvement areas and make necessary adjustments. SMART goals also clearly define success and create a system of constant improvement for both employees and your organisation.
Learn how Appraisd can support SMART goal-setting with our handy guides:
How to…. set good objectives (top ten do’s and don’ts)
Learn how to set good objectives with our handy to ten do's and don'ts guide
Download our objective setting guide here
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