Why the Characteristics Matter
A vaguely written objective is useless because the business cannot tell when it has been reached. A good objective therefore meets the SMART criteria, where each letter names one important feature.
The SMART Criteria
- S – Specific: The objective is stated clearly and exactly, not in general terms. For example "increase soap product sales", not merely "get better".
- M – Measurable: There is a figure or yardstick so that achievement can be checked, for example "by 20%".
- A – Achievable: It is within the reach of the resources and capability of the business.
- R – Realistic: It is reasonable given market conditions and does not clash with other objectives.
- T – Time-bound: It has a clear deadline or period, for example "within 12 months".
Example
SMART objective: "Increase bath-soap sales by 20% within 12 months." It is specific (soap sales), measurable (20%), achievable and realistic if resources allow, and time-bound (12 months). Not SMART: "We want to succeed" is too general and has no measure.
Remember
The measurable and time-bound features are often the key. Without a figure we cannot tell if the objective is met; without a period there is no sense of urgency to act.
The Effect of SMART Objectives
SMART objectives make it easier for management to plan actions, allocate resources and assess performance. They also give employees a clear target to focus on, which raises motivation and accountability in the organisation.
A Common Mistake
A common mistake is to write an objective too generally, such as "increase sales". Such an objective can be turned into SMART form by adding a figure and a period, giving "increase sales by 15% within six months". In this way the objective supports the company's vision and mission and is easy to assess at the end of the set period.