07/23/2024 - Articles
Formulate SMART project goals - make success measurable
Ready for success? The SMART method is your key to clearly defining goals and achieving project and personal objectives! The acronym stands for Specific, Measurable, Attractive, Realistic and Timed - the building blocks for goals that not only sound fantastic, but are really within reach. Discover how you can take your projects to the next level with SMART and get the motivation in your team crackling.
Definition: What is the SMART rule / SMART method for defining goals?
The SMART rule, also known as the SMART method or SMART formula, is a method for formulating clear and concrete goals. The abbreviation SMART stands for Specific, Measurable, Attractive, Realistic and Time-bound. Here is a brief explanation of each criterion with suitable examples:
Specific (S)
The goal must be formulated clearly, unambiguously and simply in order to define exactly what is to be achieved.
Non-specific | Specific |
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Measurable (M)
The achievement of objectives should be measurable. Depending on the type of goal, quantitative or qualitative factors such as key figures or satisfaction can be used. To ensure that the goal remains achievable, it is sometimes wise to specify a range rather than a fixed measurement.
Not measurable | Measurable |
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Attractive (A)
Objectives should be attractive in that the concrete benefits for those involved are clearly evident. Positive formulations and the involvement of the people concerned can increase the attractiveness.
Nicht attraktiv | Not attractive |
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Realistic (R)
Goals should be ambitious, but also achievable. Unrealistic goals could have a demotivating effect and should be avoided.
Not realistic | Realistic |
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Time based (T)
A specific date should be set by which the target must be achieved. This is important in order to measure progress and make adjustments if necessary.
Not time-based | Time-based |
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When does it make sense to formulate SMART goals?
Applying the SMART rule helps to ensure that goals are clearly defined and provide a clear framework for implementation. This is particularly useful in areas such as strategy development, project management and general goal setting. It enables efficient review and alignment of objectives to ensure they are realistic and achievable.
Target agreement systems such as Management by Objectives or Objectives and Key Results (OKR) also integrate SMART criteria, whereby specific adjustments should be taken into account depending on the context.
You can use the SMART formula to set goals not only in a business context, but also in your private and personal life. However, the basic orientation of goal formulations differs in the private sphere, as the person setting the goals benefits personally from achieving them and also assesses whether the goal has been achieved.
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Who invented it
The acronym S.M.A.R.T. probably goes back to George T. Doran's article in Management Review in 1981. The title of the article was “There's a S.M.A.R.T. way to write management's goals and objectives.” The acronym stood for the terms “Specific, Measurable, Assignable, Realistic, Time-related”.
What are the advantages of defining SMART project goals?
Make sure that your key objectives, regardless of their timing, integrate all SMART components. Although this may seem more time-consuming than defining traditional objectives, the benefits of the SMART method outweigh the additional time required. Objectives are not just a one-off definition, but a crucial part of the project plan. The SMART method offers your team
1. increased motivation
By knowing exactly what the project goals are, the team becomes more motivated and works together towards a common goal. Employees who understand how their individual work supports the company's goals are twice as motivated. Setting and sharing SMART goals can therefore increase the motivation of the entire team.
2. project success is understandable for everyone
SMART goals make it possible to set clear and precise objectives, avoiding ambiguous or confusing wording.
3. clear plans and finish line
The SMART method ensures that you know exactly what you want to achieve, within what timeframe, and that these goals are realistic and achievable. It specifies that the goals will be measured at the end to determine the success of the project.
4. objective metrics
At the end of the project, SMART goals support the evaluation of the project's success. Even if not all objectives have been achieved, the quantitative nature of SMART objectives allows for better evaluation and learning opportunities for future projects.
The SMART criteria in detail
In contrast to the original version of the acronym, there are now different versions. The SMART rule is not a fixed standard. There are therefore various interpretations of the criteria. In the following, we take a detailed look at the possible interpretations.
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S for specific or simple
The objective must be formulated in such a way that it is unambiguous, concrete and clear. The specific original and the specific in German have become established for this purpose. Another interpretation would be S for simple, i.e. easy to understand.
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M for Measurable
The objective measurability of success based on clearly defined values also leaves no room for interpretation. Measurability is a must and goals must be operationalized.
Using the SMART method, we operationalize the goals, i.e. we make them measurable in terms of their content, scope and time frame using key figures. Operationalized objectives serve as concrete instructions for implementing the objectives in practice and ensure that the achievement of objectives can be monitored over the course of the project. Measurability is a must and objectives must be operationalized.
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A for Assignable, Achievable, Attainable, Ambitious, Executable or Adequate
The originally used “assignable” emphasizes that a goal should be formulated so precisely that a work instruction to a specific person or organizational unit can be easily derived from it. This is undoubtedly an important characteristic for objectives, but it is a logical consequence of the other characteristics: A clearly described, realistic and measurable goal can always be assigned to someone.
The most common interpretation of the letter “A” as “achievable”/“attainable” takes over the function of “R” like “realistic” in the original formulation, which is now more often interpreted as “relevant”. The idea is that a goal that is not achievable makes no sense. Nevertheless, the criterion “achievable” is subject to a wide range of interpretations: what appears “unachievable” to one person may merely represent a “challenge” to another. From a project management perspective, the “achievable” criterion can be understood as a statement of probability: It answers the question of how likely it is that the project can achieve its goal. “Achievable” then means that the probability of the project failing is lower than the willingness of the sponsoring organization to take risks.
An intensification of “achievable” can be found in the interpretation “ambitious”. This presumably follows the approach that setting an ambitious goal is more motivating than a goal that can certainly be achieved. While this may be correct in certain contexts, it does not seem to make much sense to use this as a general rule for all goal formulations.
In the German translation, “A” is often translated as “executable” or “appropriate”, occasionally also as “accepted” or “acceptable”. However, “accepted” only makes sense after a goal has been formulated, as a goal can only be accepted after it has been formulated. Therefore, this interpretation does not make sense.
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R such as Realistic, Resourced, Reasonable or Relevant
There is general agreement that a goal should be “realistic”, i.e. achievable, and this criterion should therefore be included in the SMART formula. However, the reinterpretation of “assignable” to the more commonly used “achievable” allows other criteria to be assigned to the “R”.
The most frequently chosen attribution is “relevant”. This emphasizes that it does not make sense to declare self-evident or banalities as goals. For example, it would make no sense to set the consumption of the project budget as an objective, as this is an unpleasant but unavoidable consequence of value-adding activities and is neither their cause nor their intended result. Another important aspect is that the recipient of a target agreement should be convinced of its relevance in order to be motivated to carry out the task.
The meaning of “reasonable”, on the other hand, does not appear to be very helpful, as it does not contribute any additional aspect to the other characteristics. Similarly, “resourced” in the sense of “equipped with the necessary resources” should not yet play a role in the formulation of a goal, as the allocation of resources only takes place in a later step after the goal has been defined.
In German-speaking countries, “realistic” and “relevant” are often translated as “realistisch” and “relevant”. Other English terms have no corresponding German interpretations.
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T for Time-related, Time-bound, Time-based, Terminate, Timely, Timetable or Terminated
The letter “T” is uniformly used for a time-related criterion. Although the English word “terminate” means not only “to provide with a deadline” but also “to end”, a combination of words must be used to express the fact that when formulating goals, the time at which the goal is to be achieved should also be specified.
In the German-speaking world, the word “terminiert” is available, which begins with “T” and conveys roughly the same meaning. However, it can be misunderstood, as “terminieren” not only means “to agree or set a deadline”, but also “to limit, to set a time limit” in the original sense. Furthermore, influenced by the English “terminate”, which has the same meaning, it is also incorrectly used in the sense of “end”.
It therefore seems advisable to use a compound word in German, such as “termingebunden” or “termbezogen”, in order to emphasize the temporal dimension of a goal and avoid misunderstandings.
Examples and exercises: Formulating and defining SMART goals
Enough theory. Let's get into practice and look at specific examples of SMART formulated goals!
5 examples of different types of SMART goals
How does the SMART method work and how can you formulate your goals effectively according to the SMART criteria? Here are five practical examples of different types of goals with explanations of the SMART criteria to help you set clear and achievable goals:
Business goals
In the next quarter, the company plans to increase sales by 15% by launching a targeted marketing campaign for a new product.
Why is this goal SMART: The goal is specific (increase sales by 15%), measurable (by tracking sales), achievable, realistic (based on historical data) and time-bound (next quarter).
Team goals
The team aims to improve efficiency by introducing a new project management tool and training all team members in its use within six months.
Why is this goal SMART: The goal is specific (introducing a new project management tool), measurable (training all team members), achievable, realistic and time-bound (within six months).
Professional goals
SMART goal: By the end of the year, I will enhance my professional skills by obtaining two job-relevant certifications.
Why is this goal SMART: The goal is specific (obtain two job-relevant certifications), measurable, achievable, realistic (job-relevant certifications are available) and time-bound (by the end of the year).
Personal goals
SMART goal: In the next three months, I will improve my reading habits by reading at least two books a week from different genres.
Why is this goal SMART: The goal is specific (improve reading habits), measurable (read at least two books a week), achievable, realistic and time-bound (within three months).
Public benefit goals
We plan to donate 500 food packages to families in need by the end of the month.
Why is this goal SMART: The goal is specific (donate 500 food packages), measurable, achievable, realistic (based on available resources) and time-bound (by the end of the month).
Defining project goals - the key to project success
Why clear project objectives are crucial for project success, which types of objectives are relevant in the context of project management and why you should define project objectives: You can find out all this in the article “Defining project objectives - the key to project success”.
Examples: Are these goals formulated SMART or not SMART?
Formulating SMART goals is not always as easy as it seems at first glance. Let's practise a little and look at the following three examples. SMART or not SMART?
Example 1: “The efficiency of our work processes must be improved.”
- Specific: The goal is formulated too generally, as it is not clear which work processes are to be improved.
- Measurable: It is not clearly defined how the improvement in efficiency can be measured.
- Attractive: Greater efficiency would be in the interests of employees and the company.
- Realistic: It is assumed that the improvement in efficiency is realistic.
- Time-bound: The goal is not time-bound; there is no clear deadline.
Rewording according to SMART: “The lead time for the ordering process should be reduced by 20% by March 31.” The goal is now specific to the ordering process, measurable through the 20% reduction in lead time, attractive for increasing efficiency, realistic as it represents a concrete improvement, and time-bound through the deadline of March 31.
Example 2: “Our team strives to increase customer satisfaction.”
- Specific: The goal is too vague as it is not clear which aspects of customer satisfaction should be improved.
- Measurable: There is no clear metric to evaluate the increase in customer satisfaction.
- Attractive: Increased customer satisfaction is in the interests of the company.
- Realistic: It is assumed that the improvement in customer satisfaction is realistic.
- Time-limited: The goal is not limited in time, there is no clear deadline.
Rewording according to SMART: “The average rating in customer surveys should be increased by at least 15% by the end of the next quarter.” The target is now specifically geared towards customer surveys, measurable through the 15% increase in ratings, attractive for the company, realistic and set to the end of the next quarter.
Example 3: “The monthly energy costs for the production facilities are to be reduced by 10% by the end of the year.”
- Specific: The target is specifically aimed at the monthly energy costs for the production facilities.
- Measurable: The 10% reduction provides a clear metric for target achievement.
- Attractive: Saving costs by reducing energy costs is in the interests of the company.
- Realistic: The 10% reduction appears realistic based on previous analyses and experience.
- Deadline: The target has a clear deadline by the end of the year.
This example already fulfills all SMART criteria, as it is clearly defined, measurable, attractive, realistic and has a deadline.
Alternatives to the SMART method: PURE, CLEAR and AMORE
It is important to emphasize that SMART is not the only criterion for optimally formulated goals. Other criteria can often be helpful to further specify the definition of objectives. There are a number of other formulas that can be used to help with this:
- PURE: Positively formulated, Understood, Realistic and Ethical. A positive formulation is generally recommended in order to generate the desired positive reaction in the brain.
- CLEAR: Challenging, Legal, Exciting, Agreed and Recorded.
- AMORE: Ambitious, Motivating, Organized, Realistic, Earnest
Conclusion: SMART ensures project success with method
Defining SMART project objectives provides a clear way to improve goal setting and enables effective implementation. Applying the SMART criteria - Specific, Measurable, Attractive, Realistic and Timed - not only promotes motivation and project success, but also facilitates the clear communication and evaluation of objectives. Whether in a business context, in a team or on a personal level - the SMART method creates a solid basis for precisely formulated goals and thus supports the path to successful results.
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About the author
Like all other departments at Projektron GmbH, Marketing also attaches great importance to the clear definition and tracking of project goals. After project completion, the effort is evaluated in detail, lessons learned are recorded and processes are continuously optimized. Kai Sulkowski is an editor in the marketing department and is always informed about the latest developments and best practices in project management.
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