Setting clear SMART objectives is often the first step towards maximising productivity and improving performance, all while delivering business value. These objectives serve as a roadmap, continuously guiding employees towards the overarching company goal. They help focus, give direction, set expectations, and also motivate the workforce.
Employees can meet and exceed expectations only if they have a clear understanding of what is required. Additionally, when employees are confident in their expectations, they avoid wasting business time and energy, allowing them to fully utilise their skills and time.
However, according to a study by Gallup on companies worldwide, only half of employees strongly feel they clearly understand what is expected of them at work. This is precisely where SMART objectives can come into play. Proper implementation of SMART, clear objectives can make employees feel better equipped to prioritise their workload and deliver results aligned with business value, improving overall performance.
A critical part of establishing SMART objectives is enabling employees to take charge. People are more inclined and driven to achieve goals that we set ourselves. According to McKinsey, involving employees in setting goals throughout the entire process helps to secure employee buy-in and ensure their commitment to ongoing development.
By following the approach outlined below, you can assist your employees in developing the skills and confidence needed to write effective personal objectives. These practical tips will help you to formulate SMART objectives that will foster performance improvement over the long term.
Employees should consider their limitations
Goals should be designed to challenge employees and push them beyond their comfort zones to drive progress, but they must also be within reach. It's crucial to recognise the drawbacks of setting unrealistic goals compared to the time and resources available.
As time passes, employees tend to gauge their own rate of progress and limits to set these realistic objectives. Meanwhile, managers must intervene to prevent employees from pushing themselves too hard and overtaxing themselves. It's particularly important to be cautious with perfectionistic employees, as this can result in unmet objectives, leaving them disappointed and frustrated, affecting all parties involved.
Keep them flexible allowing changes as needed
Most organisations today maintain an agile approach, with their needs and requirements shifting over time in response to macroeconomic and organisational changes. Priorities change, and what was an important matter two months ago may now be irrelevant or unsupportive to the organisation’s objectives. Keeping this in mind, employees should be able to adapt their objectives in line with these changes. However, it is crucial to ensure that these changes remain meaningful and helpful. These adjustments should be discussed during regular one-to-ones, where employees and managers freely exchange thoughts and feedback on objectives.
Track your smart objectives using a performance management software
Efficient performance management software streamlines the establishment, agreement, and monitoring of SMART objectives for everyone involved. After an employee drafts their objectives, the manager reviews them to ensure they are suitable and provides feedback for any necessary changes. This ensures a collaborative approach, with both parties having a clear agreement on the goals. After formalising the objectives, everyone involved can track progress and provide feedback through the performance management software. This approach keeps everyone informed about successes and challenges, allowing managers to provide additional support if needed.
Define what ‘SMART’ stands for
Before employees delve into crafting one, it is crucial for them to understand what a ‘SMART’ objective is. George T. Doran coined the phrase in 1981, and since then, there have been a number of variations defining the term. For us, SMART objectives mean:
‘S’ stands for Specific and Stretching
The objectives need to be clear and precise, leaving no room for ambiguities or confusion. For example, the objective should not be simply ‘increase sales.’ Instead, it should specify which product to improve sales for, by what percentage, and within what time frame. Objectives should also be stretching, meaning they should challenge employees and motivate them to achieve their goals.
‘M’ stands for Measurable
A ‘SMART’ objective is one whose success can be measured and clearly defines what success looks like. These goals provide specific metrics or standards to measure progress against, enabling you to determine whether the goal has been achieved. The measure can be either quantitative or qualitative.
‘A’ stands for Achievable and Agreed
Objectives should stretch and challenge employees but must also be practical and achievable. Unrealistic goals that seem impossible can foster a culture of failure, discouraging employees rather than creating a motivational environment.
Mutual agreement on objectives between employees and managers is crucial. This collaborative process helps employees feel empowered and involved in their goal setting. It also allows managers to ensure the goals are suitable and in line with the company’s strategic objectives, fostering a sense of autonomy and real ownership in employees.
Performance management software can be highly effective in this process. It helps set and track objectives, ensuring that both parties are satisfied and in agreement with the goals.
‘R’ stands for Relevant
All performance objectives should be relevant to the organisation’s overarching goals. They should support what the organisation aims to achieve and align with its overall mission. If objectives lack relevance, achieving them will not impact the organisation’s performance, which contradicts the fundamental purpose of an effective performance management system.
‘T' stands for Time-Bound
Objectives need to have time-bound target dates that are mutually agreed upon by employees and managers. This practice fosters a sense of urgency and allows managers to oversee progress and determine if employees are advancing towards their objectives effectively.
Encourage employees to set “near-term” objectives with a timeframe of one to six months, rather than focusing solely on year-long goals. Near-term objectives are often more motivating because they are achievable sooner and less likely to become irrelevant as business needs evolve. These short-term goals can serve as “mini milestones” toward achieving larger, long-term goals.
Explain why SMART objectives matter to your employees
Whether setting general SMART objectives or personal development goals, it’s crucial for your employees to understand their significance and the impact they have on your company.
During your routine performance coaching meetings, highlight how effective goal setting can improve their performance and open doors for career progression and promotion opportunities within the organisation. Emphasise that SMART objectives are widely recognised by experts as the most effective way to set goals.
Use this opportunity to show employees how important they and their roles are to the business. Highlight that without their contributions, achieving organisational objectives would be impossible. This transparency and authenticity will demonstrate that you see your employees as integral parts of a dedicated team and deeply value their contributions.
Keep organisational objectives transparent and guide employees to align their goals upward
Organisational transparency is increasingly gaining prominence in the business world each day. Employees are now seeking greater degrees of openness, and progressive companies are meeting these demands. After all, transparency positively correlates with levels of trust, employee engagement and organisational performance.
Having context is crucial during the goal-setting process. Provide employees with a clear understanding of the overarching company goals. Discuss any pressing concerns or obstacles that may impede progress extensively. Your clarity and straightforwardness in conveying organisational objectives will enable employees to keep them in mind when formulating their own goals and empower them to align their objectives upwards, supporting long-term company goals.
Encourage employees to challenge themselves
Everyone enjoys the gratifying moment of completing tasks on their to-do list. It makes us feel organised, productive, and efficient. Completing a task fills us with a sense of accomplishment. Studies have shown that this sense of accomplishment is even greater, and our performance is higher, when the goals we set for ourselves are particularly challenging. “Easy wins” are great, but they aren’t as effective as motivators. We put much more effort into completing our goals to standards and on time when the goals in question appear more difficult. Therefore, encourage employees to set challenging SMART goals. This is a great way to get them to test their limits and reach greater heights.