In one of our previous articles, we wrote about SMART objectives, the process of SMART objectives as well as why they are important to an organization. This article discusses the process of setting up SMART objectives as well as explaining the SMART objectives clearly through an example.
The SMART objectives stand for
- Specific – The objective should be specific and not generalistic.
- Measurable – The objective should be measurable
- Assignable – The objective should be assignable
- Relevant – The objective should be relevant and not haphazard
- Time related – The objective should be time related.
The SMART objectives are regularly used for management by objectives as explained by Peter drucker. It is mainly used to drive people in an organization towards their main tasks in a timely manner such that the task is measurable. Thus, setting SMART objectives is a smart way to ensure that work is done. So what are the ways that a SMART objective can be set? We discuss with the following examples.
Setting SMART objectives for Sales – Objective is to achieve sales figure of X amount for this annual year by the sales team of each region. Thus the X amount will be a regional target for each sales team.
Setting SMART objectives for Marketing – Objective is to plan and implement at least 60 – 80 ATL and BTL activities for the annual year. The objective is to be assigned to the Marketing department.
Setting SMART objectives for Commercial and Accounting – To ensure that all accounting books are maintained quarterly and the accounts are closed properly for the financial year. Also to ensure that commercials keep a watch on the margins for the company and keep a track for margins on a weekly basis.
Setting SMART objectives for Auditing team – To ensure that each department in the organization is audited twice on a half year basis. Auditing to be carried out by the Auditing team.
Setting SMART objectives for CEO’s – To ensure that the organization grows by X percentage for the financial year along with the margins which has to be achieved at Y percentage.
Thus, like above, there are a lot of ways for Setting up SMART objectives for an organization. Each and every department can be given a SMART objective which they have to achieve. It is important that the objective be measurable and time related. On the other hand, attributes like Specific, assignable, and Relevant are in the hand of the manager who assigns the SMART objectives to their executives.