An ALLPRO® Publication VOL. 23, ISSUE 7 JANUARY / FEBRUARY 2014
By: Kelley Anderson
Creating S.M.A.R.T. Goals
To qualify as S.M.A.R.T. a goal must be:
It’s the beginning of another new year and another fresh start. By now most of us have had time to reflect on the previous year and, if nothing else, take a mental inventory of our successes and failures. We invariably approach each new year with every intention of building on the previous year’s successes and minimizing those problem areas. That axiom is true whether you’re a single store operator or a multi-store chain. Building on your success and reaching new goals depends largely on something as simple as how well you communicate with your employees. Are you sharing those learned lessons with your employees? Have they been given clear direction and do they know what is expected of them?
SPECIFIC- Specific goals let people know exactly what's expected of them leaving no room for misinterpretation. Specific goals should be able to answer the following: What needs to be accomplished? Who is responsible? When must this be completed? Why is this important to the company?
Like any other business, your employees represent both your company’s biggest expense, and your most valuable asset. Ultimately, your company’s productivity and profitability depends on your employees performing to their full potential. Studies show a dramatic increase in both employee and business performance when an organization effectively sets and closely links employee goals to the company’s overall business strategy. However, according to Robert Kaplan and David P. Norton of the Harvard School Press, "a mere 7% of employees today fully understand their company's business strategies and what's expected of them in order to help achieve company goals”. Effectively setting and closely aligning employee and business goals is critically important in any business. Your employees must clearly understand how their individual work serves both the shortand long-term goals of your business. To be most effective, goals should pass the S.M.A.R.T. test and be specific, measurable, attainable, relevant and timely. Following the S.M.A.R.T. guidelines provides clarity to your employees who will eventually be evaluated against these goals. Utilizing the S.M.A.R.T. method has proven to be very effective in motivating employees to perform at peak levels.
MEASURABLE- When setting goals, you must also set specific criteria for measuring the progress and achievement of those goals. This motivates your employees to plan, aim for target dates, and reach objectives. ATTAINABLE - Setting unattainable goals serves to demotivate, rather than motivate, your employees. By setting ambitious, yet practical, goals you will inspire your employees to fully leverage their abilities and all available opportunities in order to achieve them. RELEVANT - Employees must be able to see how a specific goal is relevant to them and the work they perform in your company. Additionally, by keeping goals relevant, you will help employees better understand their connection to your company's objectives and the importance of their individual goals. TIMELY - To be most effective, goals must have a clearly defined time-frame including a target or deadline date. This provides a sense of urgency and serves to motivate individuals to begin working on their goals immediately. When your employees see how they can make a direct contribution to your company's success, they begin to focus on working more efficiently. So as you start to set those business goals for 2014 keep these ideas in mind, and remember that with the start of 2014 come endless possibilities. The ALLPRO team wishes you all a prosperous and happy new year!