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Using SMART objectives to drive performance
A work objective should be a specific, achievable target which is challenging to the employee. Typically, at any point in time, employees will have a number of work objectives for achievement. Each objective should be linked to the employee’s job role and should contribute strategically to the successful operation of the business. Ideally, objectives are not ‘set’ for an employee; they are agreed between employee and manager. This ensures that employees feel part of the objective setting process and therefore more motivated to achieve success in their role.
Some businesses differentiate between objective setting and goal setting for employees. They see objective setting as a ‘strategic’ activity and goal setting as a ‘tactical’ activity. Each employee may have a number of personal strategic objectives to achieve and under each strategic objective may come a number of more detailed tactical goals. Each tactical goal should relate and contribute to the achievement of a strategic objective.
A useful acronym to use when setting objectives and goals is SMART. The SMART objectives concept helps you to check that your objectives and goals are clearly recorded. When setting objectives and goals, ask yourself if the objectives set are SMART -
SMART stands for Specific, Measurable, Achievable, Relevant, Time-based.
There are different variations of the SMART objectives acronym; for example, the ’R’ is sometimes written as Realistic, but in essence the meaning of SMART and the message the acronym communicates remains the same.
Specific - Is the work objective clear and well defined?
Measurable – What criteria will you use to measure the success of the objective?
Achievable – Is the objective achievable or not? An objective should be a balance between achievability and challenge. Also, is it fair
SMART objectives focus on outcomes rather than activities and help employees and managers to measure success.
SMART objectives should also help to focus the performance appraisal discussion on measurable performance outcomes. This should also facilitate open discussion between manager and employee about the appraisee’s personal development and training requirements.
The importance of involving employees in objective setting
Setting objectives should be a two way process between manager and employee. Although the manager might lead the process, the employee should be invited to contribute. Sharing the responsibility for objective setting increases the employee’s commitment and motivation to achieve the agreed objectives. It’s important that managers explain the SMART objectives concept to appraisees to help them in the objective setting process.
Involving the employee in objective setting should also help to clarify expectations. Open communication also clarifies for the employee how their work objectives will be measured and evaluated.
Tips when setting objectives
1. Start each work objective with the word ‘To’ ie. To do something …
2. Make sure each work objective contributes in some way to the overall team objectives.
3. Check that each work objective is SMART enough to be assessed in terms of achievement.
4. Does each work objective contribute to the general fulfillment of the employee’s role?
5. Work objectives shouldn’t be a list of routine tasks associated with the day-to-day responsibilities of the employee.
6. Work objectives should be discussed at a face to face meeting between manager and appraisee.
7. Each work objective should have a clearly stated result.
8. Make sure there are measures or processes in place to assess the end result.
9. Make sure work objectives are specific when referring to quality and quantity.
10.Check that work objectives can be assessed against a time line.
11. Each employee should be invited to propose draft work objectives for discussion while the manager is preparing his/her own list of objectives for that employee.
12. Work objectives don’t all have to be annual, some of the objectives could be set for achievement over a shorter period of time. If you’re a manager, make sure you know when each of your appraisee’s shorter term objectives are coming up for achievement. Keep track of them and arrange a meeting with the employee to discuss them.
Useful documentation to have available when setting and reviewing work objectives
> The employee’s job description
> The work objectives set for the employee at the last appraisal
> The team’s objectives
> Notes about the employee’s performance throughout the year
> Notes on the SMART objectives concept
Smart objective examples
The hardest part of setting work objectives is coming up with the subject matter for each objective in the first place. If you’re a manager with quite a few appraisees, setting SMART work objectives for each of them is probably going to take more time than you might expect. It’s a performance appraisal exercise which requires creativity, initiative and focus.
Encouraging the appraisee to share their own thoughts on their work objectives should certainly make this process easier.
Using the SMART criteria helps to fine-tune the objective once you’ve stated it. Here are some examples of SMART objectives;
Idea for objective (not yet a SMART objective)
To increase the expertise of your team
Objective fine-tuned using the SMART criteria
To increase the expertise of your team by training one member in the use of ….. software by ….. date
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Idea for objective (not yet a SMART objective)
To eliminate staff turnover
Objective fine-tuned using the SMART criteria
To improve staff retention by 5% by …. date
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Idea for objective (not yet a SMART objective)
To improve your leadership skills
Objective fine-tuned using the SMART criteria
To complete Module 1 of the …. Leadership programme by … with a view to completing Module 2 by ….
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Idea for objective (not yet a SMART objective)
To improve your presentation skills
Objective fine-tuned using the SMART criteria
To improve your presentation skills by delivering a monthly sales update to the team starting in January 2012
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Idea for objective (not yet a SMART objective)
To increase sales
Objective fine-tuned using the SMART criteria
To increase your personal sales revenue by 10% monthly starting in January 2011
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Idea for objective (not yet a SMART objective)
To reduce overheads
Objective fine-tuned using the SMART criteria
To reduce overheads by 5% (compared to year end 2011 figure) by year end 2012
